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Our response:

We are not able to provide financial, tax or legal advice, however we always try to provide general information to help you determine the next step.

TFSAs and RRSPs both offer tax advantages to help you reach your savings goals; however, there are important differences between the plans. For example, RRSP contributions are made with pre-tax dollars while TFSA contributions are made with after-tax dollars. You can make an RRSP contribution as long you have earned income whereas an individual must be at least 18 years old to open a TFSA.

Our Comparing TFSAs and RRSPs page on GetSmarterAboutMoney.ca highlights additional similarities and differences.

Whether you should open an RRSP, a TFSA, or both, will depend on your financial circumstances, goals and tax situation.

Speak to a financial representative to learn more about your options.