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Before making a major financial decision you
should consult a qualified professional.
The TFSA will be useful in some
situations such as:
when there is no RRSP contribution room available
for savings goals such as a vehicle,
appliances, down payment for a house, etc. The TFSA could be
used instead of, or in combination with, the RRSP
Home Buyer's Plan (HBP).
seniors who are not eligible, because of age, to
contribute to an RRSP
young people just starting out, in a low tax
bracket now, expecting to increase earnings and be in a higher tax
bracket in a few years. At that time, the TFSAs could be
transferred to an RRSP, making the contribution when the tax savings
is greater. Make the transfer near the end of a calendar year,
so that the withdrawal increases your TFSA contribution room sooner.