RRSP

One of the most common questions I get is: “Should I contribute to my RRSP or TFSA first?” After years of managing my finances and learning some tough lessons, I’ve landed on what I think is a practical answer—but only after dealing with your debt.

If you’re carrying debt, focus there first. Once you’re debt-free, I personally recommend prioritizing your TFSA. Why? Because it gives you flexibility. The money is accessible, withdrawals are tax-free, and you can use it when needed without tax consequences. That kind of liquidity matters—especially when life throws you a curveball.

The RRSP has its place too, but it’s more of a long-term tool. Yes, you get a tax deduction now, but you’ll pay taxes later when you withdraw. For someone earning a standard income, that could mean giving a big chunk back to the CRA later on.

Ultimately, if you’re out of debt and saving, do both if you can. But if you have to choose, I say: max out your TFSA first, then contribute to your RRSP.

Keywords: TFSA RRSP, Canadian personal finance, retirement savings, tax-free savings, RRSP contributions, TFSA vs RRSP, debt vs saving strategy

After contributing to my RRSP and TFSA, I often hear people ask, “Now what?” It’s a fair question—but the real question should be: What did you invest in once the money landed?

Far too many people drop funds into a TFSA “savings” account earning 1.2%, or worse, let their advisor push them into mutual funds with high MERs (Management Expense Ratios)—sometimes as high as 3.2%! That’s not wealth-building. That’s giving your money away in fees.

The TFSA is a powerful tool, but only if used properly. It’s not just a tax-sheltered savings account—it can (and should) be a vehicle for investing in low-fee, long-term growth assets. The same goes for your RRSP.

Bottom line? If you’re handing over $2,000 to a stranger at a bank and saying, “Do something with it,” you need to spend more time learning about your money than shopping for your next TV. Otherwise, the real cost isn’t the MER—it’s missed opportunity.

Keywords: TFSA, MER, RRSP, personal finance, Canadian investing, mutual fund fees, financial literacy, low-fee investing