[calgarywinning]

I am at a loss that the taxes equal out between a TFSA and RRSP.

a) The whole idea of an RRSP is to contribute the maximum amount without taxation to grow at the maximum rate to be taxed at a later period in time when your tax burden is significantly less than today.
- the compounding of not taxed savings for investing is huge. The government is
basically contributing 1/3 to the investment value as a minimum.
- The contribution lowers your tax bracket for today in many cases.
- in the example of an extra $100 a month or $1200 a year contribution, depending on investment/should turn into an extra $200 a month for every 7-10 years doubling that amount every 7-10 years minimum. You would not have this in a TFSA.

The TFSA is to reward savers by allowing a very small portion of money in comparison to RRSP limits, post tax to grow tax free until it is withdrawn. The amount of increase is taxable at what we hope to be a lower rate. However, your post tax growth potential is severed because the taxes have been submitted. TFSA is great for high net worth earners that continue to save and look for tax shelter.