Hi all,

I am new in Canada helping my wifes uncle who has lived here 40 years and who has very little overview of his finances.

I am helping move him to a bank that gives a better GIC (he refuses to invest in stocks) and max out his TFSA contribution. However this is around 40k left which could be invested in RRSP (he has 45k available).

My question: Does it make sense to take this 40k and put in a 2-3 year GIC and just let it grow, rather than putting it in a regular GIC that gets taxed every year? He does not need this money now, for at least 10 years he is fine drawing from the TFSA, so in my mind it makes sense to use the RRSP as the profit will be tax free untill he withdraws the money. And to my understanding once he does this the taxes paid on it will be limited (he will receive the OAS benefit and little else once he retires).

Thanks guys hope above makes sense, any and all comments are most welcome