RRSP vs. TFSA – Which One Is the Best Investment Choice?

Much has been written about the relative merits of saving in RRSPs and TFSAs. The discussion usually comes down to a close call based on some elaborate calculations. For me the choice is clear. For those who make a good living, marginal tax rates are somewhere near 45%. Given $10,000 of income burning a hole in your pockets, the choice is to put the $10,000 in an RRSP or to pay $4500 in taxes and put $5500 in a TFSA.