Quote:
Originally Posted by darklord700
The $3500 more in RRSP is not your money, it's the Crown's. If we ignore the marginal tax bracket effect or income inclusion effect of RRSP and TFSA, the math for both RRSP and TFSA works exactly the same. That's because the effect of both RRSP and TFSA is that your investment income is taxed only once, instead of twice as in a non registered account.
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Very true if tax rates remain exactly the same now and in the future when RRSP funds are withdrawn. If taxes go up in the meantime, then the use of a TFSA account would be superior vs. a RRSP account, the opposite is true favoring the use of a RRSP account if taxes go down. That is of course it's an 'either/or' arguement rather than the case where you have more than your contribution caps to invest.