What would you do in my brother's situation? --- TFSA, RRSP

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  • Feb 18th, 2018 7:12 am
Deal Addict
Jan 18, 2014
1536 posts

What would you do in my brother's situation? --- TFSA, RRSP

8K in cash in a non-registered savings account;
12K in stocks & high-fee mutual funds in a non-registered account;
23K in cash in a TFSA;
no RRSP;

RRSP contribution room of $16k

Stable job, income about $50K, mid-20s. No short- or medium-term need for the money. Able to tolerate volatility and risk.

The particularity of the situation is that income for fiscal year 2017 was about $60K due to sideline contracts, but can expect $50k going forward with annual raises of about 2-3%, nothing major.

What would you do in this situation?
2 replies
Deal Addict
User avatar
Aug 4, 2014
3963 posts
Toronto, ON
You gave a good advice in another thread for XAW + VCN, so I guess your question is more about RRSP vs TFSA? I think with this income it’s commnly recommended to max out TFSA first - and worry about RRSP later, when the income is higher. Here’s one of the many articles on the subject: ... -struggle/

So I’d say consolidate all 3 accounts into one TFSA - and buy either XAW + VCN/XIC or VGRO (for simplicity :))
Deal Fanatic
Mar 24, 2008
6278 posts
+1 for VGRO and a maxed out TFSA, don't bother with RRSPs. Open a non-registered account if he has surplus savings.


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