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Old 02-18-2015, 01:20 PM   #28
Ducay
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Everything (RRSP, TFSA, non-registered) will be taxed eventually. The only true tax avoidance is the gains in a TFSA.

Everything else, (ie RRSP), is just a deferral of tax from the year contributed to the year withdrawn. Hence why I recommend saving outside of a RRSP until you're at your highest tax bracket, or are comfortable that you will not need those savings in day to day life. (ie needing to withdraw in emergency and losing the room and paying tax on the income). Taking advantage of the first time homebuyer plan is about the only time I'd recommend young people using up their RRSP room.

edit: the only other time I'd suggest contributing to your RRSP as a young person is if you get an employer match of a portion of it, because then you're actually making money by saving.

Last edited by Ducay; 02-18-2015 at 01:25 PM.
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