TFSA returns to date

Preparing for life after work. RRSPs, RRIFs, TFSAs, annuities and meeting future financial and psychological needs.
2of3aintbad
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Re: TFSA returns to date

Post by 2of3aintbad »

cardhu wrote:
2of3aintbad wrote:It is the young people that have the advantage (over me) of many more years of TFSA contributions.
For me, TFSA wouldn’t have been particularly advantageous, even if it had existed when I entered the workforce. In fact, it may have been a disadvantage (for me). If it had distracted me from making RRSP contributions, I would have ended up substantially poorer (on an after-tax basis) than I am. The TFSA is a nice addition to the toolbox, but it is not the panacaea that many make it out to be.
Before there were TFSAs, there were RRSPs with no carry forward. Then RRSPs were enhanced to allow carry forward of contribution room. Then TFSAs were introduced, also with unlimited carry forward. If you are saying that TFSAs would have distracted you from making RRSP contributions that could not be carried forward, I understand your point. But otherwise, since you can invest in your TFSA anything that you can in your RRSP, I don't understand how you would have ended up substantially poorer.
cardhu
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Re: TFSA returns to date

Post by cardhu »

No, I wasn’t referring to the carry-forward ... I was referring to tax efficiency.
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