Patrick and Susan just recently graduated from the business program at York U. and got married. They both now have full time jobs and would like to purchase a house within the next few years. Neither Patrick nor Susan have ever owned a house before.
They would like to know if they should contribute to their Registered Retirement Savings Accounts (RRSPs') or open and contribute to a Tax Free Savings Accounts (TFSA's). They only have $3,000 each to contribute and so they assume that they should contribute to their RRSP or TFSA, but not both.
Explain four differences between RRSP accounts and TFSAs.
What advice would give these clients about their RRSP/TFSA?