Account Priority Optimizer

RRSP is generally better if your income (and marginal tax rate) today is higher than it will be in retirement - the deduction is most valuable in a high bracket. TFSA is better if you expect similar or higher retirement income, or if you need flexibility to withdraw without tax. The Account Optimizer ranks this automatically based on your inputs.

An employer RRSP match is an immediate 50–100% return on that dollar before it's even invested. No other account or debt payoff can compete with that guaranteed return. The optimizer always ranks employer match as the top priority - skipping it is leaving free money on the table.

High-interest debt (credit cards at 19.99%+) almost always beats RRSP investing - a guaranteed 20% return from eliminating debt is hard to match. But debt below 6–7% is a closer call, especially with an RRSP refund. The optimizer compares your debt interest rate against your net RRSP return and ranks them accordingly.

The conventional threshold is around $55,000–$65,000 in Ontario where your marginal rate is roughly 33–43%. Below that, TFSA is often better (lower marginal rate = smaller RRSP benefit). Above that, RRSP deductions are worth significantly more. If your FHSA is open and you're buying a first home, FHSA typically beats both.

Yes. FHSA and RRSP have separate contribution limits and can be maximized independently. For 2026, FHSA allows $8,000/year (up to $40,000 lifetime) and RRSP allows up to $33,810. Using both is the optimal strategy for first-time home buyers with higher incomes - you get the deduction on both and the FHSA withdrawal is fully tax-free.

The First Home Savings Account (FHSA) is for first-time home buyers who are Canadian residents aged 18–71. Contributions are tax-deductible like RRSP, and qualifying first-home withdrawals are tax-free like TFSA. You can contribute $8,000/year ($40,000 lifetime) and must use the account within 15 years of opening. Unused funds can be transferred to RRSP.

Yes. Employer RRSP matching is always ranked first because it is an immediate 50–100% return on that contribution. The optimizer shows this as your highest-priority action before other accounts.

Each account or action is scored by expected after-tax, after-inflation return per dollar, adjusted for your marginal rate today and expected marginal rate at withdrawal. Employer RRSP match scores highest (guaranteed immediate return). High-interest debt is ranked by interest rate. Registered accounts are ranked by tax-rate differential. Non-registered comes last.

For most Canadians earning $55,000–$100,000, the order is: (1) employer RRSP match to the full match cap, (2) high-interest debt above 12%, (3) FHSA if eligible for a first home, (4) RRSP up to the 30% marginal rate threshold, (5) TFSA, (6) additional RRSP, (7) non-registered. The optimizer personalizes this for your income, province, and situation.