The Value of RRSP’s
Today, there are a variety of ways to save money and several schools of thought to what is most effective. There are even some industry pundits who would weigh in and say that a TFSA, “tax-free savings account” has more value than an RRSP, “registered retirement savings plan”. For sure, there are always situations that favour one scenario over another. In general, however, for the majority of the working population, an RRSP still holds the most value. The simple caveat to this is that the one glaring exception is the self-employed business owner that pays themselves a very low taxable income and is in one of the lowest marginal tax brackets. In that situation since there aren't significant tax savings, a TFSA might make some sense. That said, in my experience if the self-employed individual has such a low income they are unlikely able to contribute to any investments anyway.