If you are moving registered money (ie RRSP,TFSA,RRIF) from one institution to another financial institution – you need to complete the proper transfer so that the government doesn’t think you have cashed in your account, which will have tax consequences. ...
I might just as well invest the $5k in my RRSP and reduce my income tax rather than save tax on ($5,000 @ 2.5% earns $125 @40% tax equals about $50 tax). If my risky investment loses 20% in one year (I have lost $1,000) and my TFSA has a face value of $4,000 left ...