RRSP Vs TFSA vs Non-reg account - Opinion Poll for 2023

[ExtraSlow]

If you had contribution room in each account, and an amount to save/invest for your retirement, what type of account would you put your money into TODAY?
RRSP, TFSA, or standard non-reg investment account.


Please vote in poll.

[Brent.ff]

i mean i would, but this mega thread is missing said poll..

[ExtraSlow]

fuck you are fast, it takes time for the poll to be built after you create the thread. about 90 seconds in this case.

[taemo]

Ideally max out TFSA first, then RRSP and finally standard.

[GT.....O?]

i follow the 96k rule with any extra money (this amount changes with the canadian tax brackets, now the 100k rule...)


If your net income is above 96k, put the extra money into the RRSP. if its below the 96k, but it in the TFSA.

If you are pulling the money out of your RRSP at the same tax % that you are contributing to it, might as well throw it into the TFSA. The real benefit is the 6-10% benefit from the higher incomes

IE if your income is >~150k, you are in the 38% tax bracket and you benefit from extra 8% back now, and are likely paying yourself 40-60k/year in retirement which would put you in the 30% tax bracket




There are several other considerations, but without knowing your full financial situation this may or may not apply


Edit: best plan of attack if you can, contribute to RRSP to get down to net income of 100k, then tax return and anything else goes into TFSA... assuming you have the room

[kenny]

Depends on income as well as any employer matching programs. Generally, if you are in lower tax brackets you'd want to use TFSA first. As you move up into higher tax brackets RRSP makes more sense. If your employer matches RRSP, do that first.

Probably over simplifying it, but probably makes sense for most people.

[killramos]

RRSP's are awesome if you are rich this year but plan on being poor in retirement

[andyg16]

I've never put much thought into it but my method has usually been top up RRSP, put tax refund into TFSA.

[msommers]

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Depends on income as well as any employer matching programs. Generally, if you are in lower tax brackets you'd want to use TFSA first. As you move up into higher tax brackets RRSP makes more sense. If your employer matches RRSP, do that first.

Probably over simplifying it, but probably makes sense for most people.

Yeah employee match can be incredible. My wife gets 8%!

[ExtraSlow]

Yeah obviously any employer match would change the calculation.

[holden]

Max both registered accounts, put non-reg into the home, pull it back out via HELOC and do leveraged investing.

But really, who would be putting it into a non-reg account when they have TFSA or RRSP room?

[sabad66]

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Max both registered accounts, put non-reg into the home, pull it back out via HELOC and do leveraged investing.

But really, who would be putting it into a non-reg account when they have TFSA or RRSP room?

Dual US citizens can run into problems with TfSAs not being recognized by the US. That’s why I don’t have one unfortunately and invest short term in a non-reg cash account. Rrsp thankfully is recognized.

[Masked Bandit]

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i follow the 96k rule with any extra money (this amount changes with the canadian tax brackets, now the 100k rule...)


If your net income is above 96k, put the extra money into the RRSP. if its below the 96k, but it in the TFSA.

If you are pulling the money out of your RRSP at the same tax % that you are contributing to it, might as well throw it into the TFSA. The real benefit is the 6-10% benefit from the higher incomes

IE if your income is >~150k, you are in the 38% tax bracket and you benefit from extra 8% back now, and are likely paying yourself 40-60k/year in retirement which would put you in the 30% tax bracket




There are several other considerations, but without knowing your full financial situation this may or may not apply


Edit: best plan of attack if you can, contribute to RRSP to get down to net income of 100k, then tax return and anything else goes into TFSA... assuming you have the room

This is the overall strategy we follow in the house.

[GT.....O?]

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Yeah obviously any employer match would change the calculation.

Two days left for anyone looking to make some last minute changes