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Wealth Professional | 13 Jan 2016, 08:15 AM Agree 0
In the span of just six years the RRSP has gone from useful to useless when it comes to the average Canadian saving for retirement says tax expert
  • Brad Jardine CFP, CLU, CHfC | 13 Jan 2016, 12:55 PM Agree 0
    Will, I think this may have been written to generate some comment from the field? Jamie's far more analytical and seldom makes generic statements such as indicated here without greater context. I'm sure many of us, including Jamie, would agree that the "RRSP isn't quite dead yet" to steal a phrase from The Holy Grail. It can still be a very integral part of a thorough long term plan. Besides, let's be realistic, the average client "WON'T" save anything without some immediate gratification-a tax refund and many, many will withdraw funds from any plan for the same reasons. A TFSA may in fact be "too easy" to get at. We can't change human nature rampant in the majority of our client's psyche.
  • Will Ashworth | 13 Jan 2016, 04:37 PM Agree 0
    Hey Brad,
    You're absolutely right. Jamie didn't say the RRSP is dead. In fact, he compared the TFSA and RRSP in terms of tax rates today and in the future upon retirement. I was simply pointing out that he felt for many the TFSA is probably a better choice.

    Here are his exact words from his op-ed.

    "Quite simply, for many Canadians attempting to save for retirement, a TFSA may be the better option."

  • James Kraemer | 16 Feb 2016, 11:20 AM Agree 0
    In fact most Canadians will retire at a much lower income and lower tax rates than they have while working. So by contributing to an RRSP you not only get a tax deferral but also a tax reduction. The RRSP is far from dead.
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