RRSP or TFSA ...or BOTH?
There is plenty of debate about whether RRSPs or TFSAs are the best place to park your savings, but industry professionals say if you understand the advantages and disadvantages of each, there is little reason not to use both. "Both the RRSP [registered retirement savings plan] and the tax-free savings account form a very important role in an overall financial plan," explains Jared Webb, an adviser with Fernhill Financial in Victoria, B.C. "They're both very effective.They're both fantastic tools. One is not better than the other, really. They serve different purposes. Like any tool in a tool chest, if you use the proper tool for the job, it's the most effective." It's the tax treatment that's different, and that can make a difference when deciding which one is right for you. "Tax-free savings accounts and RRSPs are simply just tax strategies," Webb said. "They're just telling the governme...

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