Should we max on RRSP limit
I've been told that if we expect to make more annual income in the future, then we should not max on RRSP and save up the contribution room to lower tax brackets in the future.
However, I'm not sure if that statement is true.
If people have money lying around not being invested, why not max your RRSP room every year? When your income is high, then you can claim your RRSP that year to lower your tax bracket. The benefit of maxing out RRSP every year, is so that you can invest your money earlier and have it grow.
What are your thoughts, is that what people should be doing, or is there more to this logic than I thought?
However, I'm not sure if that statement is true.
If people have money lying around not being invested, why not max your RRSP room every year? When your income is high, then you can claim your RRSP that year to lower your tax bracket. The benefit of maxing out RRSP every year, is so that you can invest your money earlier and have it grow.
What are your thoughts, is that what people should be doing, or is there more to this logic than I thought?