Quote:
Originally Posted by mrkajz44
Oh agreed on the TFSA - its probably the best plan out there right now. Only downside is a small contribution amount is available per year ($5,500 per year now).
Just trying to point out that a RRSP has two main benefits. One is the differences in tax rates when contributing and withdrawing (and the most talked about), and two, the deferral of tax over a number of years. This second benefit almost always goes overlooked, usually when people are saying RRSPs are not great because their marginal tax rate in retirement may not be that low.
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I think pretty much absolutely everyone and their dog knows that. My 10 year old daughter knows that. It just never gets talked about because everyone knows that RRSP is better than straight up non-registered. Not really worth bringing it up. I have only ever seen arguments against RRSP when discussing them against another comparable vehicle, in which case, all else being equal, TVM doesn't really play a role, which I illustrated on the last page.