Q: Should I be using a TFSA or an RRSP to save for retirement?

A: The first step in determining whether a Registered Retirement Savings Plan (RRSP) or a Tax-Free Savings Account (TFSA) is the best vehicle for saving for retirement is to anticipate how your tax bracket will change over time, says Ayana Forward, certified financial planner at Retirement in View in Ottawa. Both options offer tax-sheltered investment growth.

With a TFSA, the amount you contribute (there are annual limits ) and any income earned in the account (such as investment income and capital gains) are tax-free, even when they are withdrawn. However, you can’t claim the money you put into a TFSA as a tax deduction to lower your taxable income. It’s important to note that you’ll pay a penalty of one per cent per

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