If you’ve got screws, a hammer sucks. If you’ve got nails, a screwdriver is useless.
Different investment accounts and financial products are the same: different tools with different uses.
A common mistake people make is to start with a tool and then complain when it doesn’t work the way they wanted it to. “This hammer sucks at screwing in screws.” “This screwdriver can’t even drive home a nail.”
When someone says something like, “RRSPs suck,” or “Insurance is a waste,” what they’re really saying is that it’s not the right tool for the job they have in mind.
A big part of my job is helping people figure out what they’re ultimately trying to do and then working backward to figure out which tools are best suited to perform that job.
You should always be skeptical when someone makes a blanket statement about an investment account or financial product that they claim is bad.
Bad at what? They all exist for specific reasons and to perform specific jobs. They’re good for some things and not for others. Just like any other tool.