Issue 81 · Tax
TFSA vs RRSP: The decision tree nobody teaches
Your marginal tax rate today vs retirement — that's the whole game. Here's the flowchart.
Most Canadians are putting money in the wrong bucket. If your marginal rate is under 30% (think: entry-level, parental leave, grad school), the TFSA almost always wins. Above 40%? RRSP, every time, and reinvest the refund. The FHSA sits between them for first-time buyers with 15-year horizons. Here's the full decision tree with real numbers — including why "max both" is a lazy answer that costs you tens of thousands over 30 years.