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Wealth Professional | 27 Jan 2017, 09:03 AM Agree 0
While baby boomers didn’t even have to think about investing in an RRSP, millennials have to consider the choice
  • Dale Walters | 27 Jan 2017, 10:30 AM Agree 0
    There is another reason for a TFSA and that is tax planning in retirement. If taking more money from your RRSP/RRIF would cause you to go into a higher tax bracket, you can instead take money from the TFSA. For example, if you need $70,000 per year to live on and the break in the marginal tax rate is at $65,000, you can take the first $65,000 from the RRSP/RRIF and the remaining $5,000 from the TFSA.
  • I am not a robot | 27 Jan 2017, 03:07 PM Agree 0
    A little bit of knowledge is a dangerous thing. This article can easily lead people to make wrong choices. Where is comparison of flexibility of use? Where is clarification that by 'tax rate' what is required is the 'effective tax rate' that includes the impact of thing like the Child Credit on contributions and the GIS clawback on withdrawasl? Where is the warning that many people will be taxed at higher statutory rates on withdrawal.
  • Barb Amsden | 29 Jan 2017, 10:30 AM Agree 0
    1. An important thing to highlight is that people accumulate not just RRSP room, but also TFSA room. Starting off, and at times when not working but there is spare cash, a TFSA is the way to go. Once working at a good salary, a person can take all your TFSA savings and put them in an RRSP for a big tax refund that the person can, in the following year, put in the accumulated room in his or her TFSA to restart building money tax-free. Nearing retirement (and mandatory RRSP to RRIF transfer), speak to a tax advisor to see if and when you can start moving money into your TFSA.
    2. Most important: this information is important not just for millennials, but to people of all ages.
    3. Beware the bogeyman - sorry, I mean CRA. There are twists that the CRA has refused to declare (see– unlikely to affect many but it has led to the unfair treatment of honest taxpayers – to waive interest and penalties, taxpayers have had to waive their right to claim back taxes when a Tax Court decides that the CRA has over-stepped the rules.
    4. Minor but important typo: It should read: "UNLIKE RRSPs, TFSAs have no upfront tax deduction and shield ongoing investment income."
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