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@adam56 Correct. Thats the 2nd chart. RRSP comes out ahead of TFSA, which is where most of us should end up. A lower tax rate in retirement.

@houstonreborn Yes the psychological factor is what this post is meant to try and help with. I don't think you're doing anything wrong mind you. You do whatever best fits your situation. All I'm trying to say is that those payroll contributions you're making through work - excluding that...

@houstonreborn There is no penalty for RRSP either. Just the tax that you deferred. Doesn’t take long to calculate what to set aside. Anyway look at the tables some more. Hopefully you’ll appreciate RRSPs more like I do now after I understood this. Prioritizing TFSA vs RRSP is based on...

@sagarjackey This is a very good point. So even for those in lower tax brackets prioritizing RRSP could lead to other benefits in some cases.

@carolyntormala Pay the home off. Get a HELOC. If there is an emergency where you need cash ASAP and you haven't built up enough reserves, you can pull from HELOC. It's a much. higher interest rate but unless that emergency happens before any reserves are built up, you'll be fine.

@shellyssaved Very cool. I’ll review the pdf more later on. Lots of decent permutations in there to look at.

I learned this recently so thought I'd share it with people. If you make pretax contributions to a RRSP - via your payroll - you end up with the same take home as your post tax contributions to a TFSA if your tax rate at contribution and withdrawal is the same. If your tax rate is lower at...