Quote:
Originally Posted by Canehdianman
Unless you expect tax rates to increase, then it it not a wash.
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I've seen this happen to a lot of clients as well. Guys who started saving as early as possible and were saving say 15-20% on taxes and now on withdrawals will pay 20-25% as an average rate. Its impossible to predict what tax rates will do say 20 years from now. I would guess go up, but obviously there is no way of knowing.
Certainly time value of money is a consideration as well though. An RRSP contribution today saves some tax, grows tax free for say 20 years, and while its taxable at the end, you're still ahead of the game. Its a harder consideration as retirement approaches, but can be sensible for the young.