How to pick between an RRSP and a TFSA, ETFs to hold in a recession, and the investment case for forestry stocks

This translation has been automatically generated and has not been verified for accuracy.Someone asked a nearly unanswerable question recently – should they invest in an RRSP, a TFSA or do both?

First, any high-interest-rate debt should take precedence over the registered retirement savings plan or tax-free savings accounts. Balances on credit card and unsecured credit lines are an example.From there, let’s acknowledge that maximizing both the RRSP and TFSA is ideal. If pressed to choose one or the other without knowing someone’s personal details, I would vote for the TFSA.

Contributions to an RRSP get you a tax deduction, which people also love. What they hate is having to pay tax on RRSP withdrawals in retirement. Those taxes in retirement can actually work out in your favour if your income and marginal tax rate after you leave the work force are lower than they were when you put money in the RRSP years earlier.

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