My uncle's RRSP comment at Thanksgiving made me look at my own plan

We were sitting around after dinner in Calgary and he asked what I was doing with my savings. I said I was just dumping cash into a TFSA. He told me he's been putting 300 bucks a month into his RRSP since 1998 and it's now over 180 grand. Hit me that I never bothered to check if my TFSA route was actually better for my tax bracket. Anyone else ignore the RRSP vs TFSA math until someone older called it out?

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1 Comment

bennett.evan28d ago

Hell yeah, that RRSP math is sneaky. I ignored it for years too, just shoved everything in my TFSA. Then I ran the numbers one night and realized my marginal rate was way higher than I thought. Uncle's got a point, 300 a month for 25 years adds up like crazy with the tax refunds reinvested. Now I split the difference, put enough in the RRSP to drop my tax bracket, then the rest goes to the TFSA. Took an uncle at a dinner table to wake me up too.