It’s still super common for the first investment account people open to be an RRSP.
They think it’s the only option (or obviously the best) and that any money they’re saving for retirement should go directly into an RRSP.
Parents commonly give this advice (often because TFSAs didn’t exist when they were getting started) and accountants say the same thing (because of the short-term reduction in taxes).
But for almost everyone the right place to start is actually with a TFSA!
You don’t get the immediate tax deduction, but in the long run, not paying income taxes on all the growth inside the account is a massive consideration that people regularly underestimate. They don’t think enough about all the tax they’ll pay when they go to take money out of the RRSP in retirement.
Plus, with a TFSA you get way more flexibility, which comes in handy when you’re looking for a down payment on a home.
Now, it does make sense to do the math and figure out what makes the most sense in your situation (depending on how much you’re making, how much you’re saving, whether you’re actually going to invest the tax refund or not, etc. etc.).
But even if you’re a high income earner, you should probably be maxing out your TFSA every year AND contributing to your RRSP. And even then, sometimes it makes sense to set up an alternative investment instead.
If you need help doing the math and figuring out what makes the most sense for you, feel free to send me a message. But it really is hard to go wrong maxing out a TFSA.