tax free savings

finance, tax free savings, RRSP, investing

A frequently asked question is whether it is preferable to invest in an RRSP or a TFSA. We would like to receive an answer that is “cut and dry” but that’s impossible since we are all at different stages in our lives and our goals and objectives vary.

To refresh our memories, here is a brief recap of the characteristics of each plan.

RRSP
_ You can contribute up to 18% of your prior year’s earned income to a maximum of $22,000 for 2010;
_ Your unused contribution room is carried forward to the next year;