Reading these forums, it's great to hear about the investment options in the US. (which I don't know much about)
I'm up to speed on the basic Canadian savings programs, which I think are pretty badass.
But it makes me wonder, who's got it better - Canadians with their RSPs and TFSAs, or Americans with their 401Ks and ROTH IRA? Certainly one country has to have it better, and if so, how much of an advantage do they have?
Thought it would be a neat discussion to compare with some smart mustachians on here!
For those who don't know the basics of the Canadian vehicles:
RSP: tax deferred, you get a tax refund on your contributions equal to your marginal tax rate, but are taxed when you take it out when you're retired (FI). Your contribution limit is 18% of earnings per year, with a max of (I think currently) ~$24,000, and unused contributions can be used any year after, until you're an old fart. Can hold a wide range of investments. Cannot claim capital losses, obv.
TFSA: Tax free savings account, contributions don't generate tax refunds however withdrawls are not taxed. Contribution limit of $5,500 per year regardless of income (just have to be over 18), and goes up with inflation every couple years (2009-2012, limit was $5,000). Unused contribution is carried forward, i.e. every Canadian has $25,500 contribution room as of January 1st, 2013, if no contributions to date. Any withdrawals increase your contribution room for the following year by the same amount. TFSAs can hold all sorts of investments like RSPs, but again, cannot claim capital losses.
Those are the basics, although I'm missing a whole bunch of other little details.
So who's got the advantage to FIRE, CAN or USA, and how big is that advantage?