As it usually happens with complicated questions, the answer is: it depends. Because RRSP and TFSA provide different kinds of benefits, either one is more suited to a certain life scenario.

To recap:

RRSP is a way to accumulate supplementary income in retirement, it accumulates with the employment income and provide an opportunity to delay the payment of taxes and reduce their amount. Penalty-free withdrawals from RRSP before your retirement are very restricted. Amounts taken out of RRSP in retirement are added to the total taxable income.

TFSA is a way to save for any goal, not just retirement, and…


Power of math and forecasting for financial independence

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