Not in anyway an expert but here is where I got to.
The 20% match is essentially free money. Contributing more than that amount doesn’t make sense.
If you use RRSPs to fund you would have to take the money out as income in the year you want to use it, it would be taxed at what ever income rate you are at and you wouldn’t get the contribution room back. (There might be away you can pull it out tax free but you would still need to pay it back with after tax dollars). So unless you plan on earning substantially less in the future using RRSPs is a bad idea.
A TFSA could be an option as the growth is sheltered. If you aren’t maxing your TFSA and your child chooses not to go to post secondary then this is best option. Any amount beyond the grant level of savings should go here instead if you have room.
As for where to invest a target date fund for the year your kid graduates is an okay option. Higher risk early on and gradually reducing the risk.
|