I've heard from a lot of people questioning the value of the new TFSAs. Take advantage of this opportunity! You can shelter from taxes any interest, dividends, or capital gains earned. Contribute up to $5,000 each year (this contribution amount will be indexed, although we probably shouldn't expect that for awhile!). Because you contribute after-tax money you don't receive a refund (as you do with RRSPs) but any growth on the money never gets taxed. There should be no fees for setting up the account, no annual fee, or any penalty on withdrawals. Ask about fees -- if there are any, find another investment company (these aren't just available from banks)! This account is especially useful for any investments that earn interest because interest income is taxed the heaviest.
RRSPs are vey beneficial if you're in a high income position now (and don't have a good pension to look forward to!) but will have a significant decrease in income at retirement. You get a good tax break now and will pay less taxes when you take it out because you'll be in a lower tax bracket. RRSPs don't benefit everyone but the TFSA does.
