How to get a bigger benefit from your RRSP contribution

A hairdresser keeps hearing the same warning from retired clients: skip the RRSP because the tax on withdrawals stings, and put everything in a TFSA instead. Allan takes that worry seriously and unpacks where it comes from. His point is that an RRSP and a TFSA can deliver the same tax-free result when the RRSP is funded properly, and that the trouble usually starts when people contribute with after-tax dollars and then let the refund melt into everyday spending. He explains how thinking in pre-tax terms, and actually capturing and reinvesting the refund, changes the math, and why an RRSP tends to win when your tax rate in retirement is lower than it was while working. This is a clarifying read for anyone stuck on the RRSP-versus-TFSA question and tempted by an overheard rule of thumb.