How much do you put into RRSP's each month?
02-27-2004, 05:17 PM
#51
Guest
Posts: n/a
Originally posted by Gettnbig:
A better way to do it would be to have monthy deduction taken off of each pay cheque pre tax. This will allow you to earn a return through out the year rather than let the government make money off of your money before they give it back. Just a thought.
A better way to do it would be to have monthy deduction taken off of each pay cheque pre tax. This will allow you to earn a return through out the year rather than let the government make money off of your money before they give it back. Just a thought.
02-27-2004, 05:49 PM
#53
1000 Watt CAFz'r
Join Date: Aug 2001
Posts: 1,770
last quarter i earned $3000 times 4 = $12,000
thats extra money i make that i am not taxed on
when you draw from a rrsp you are taxed on how much you make the year you are drawing it
the amount you contrubute reduces the amount you are taxed by 25%
thats extra money i make that i am not taxed on
when you draw from a rrsp you are taxed on how much you make the year you are drawing it
the amount you contrubute reduces the amount you are taxed by 25%
02-27-2004, 06:12 PM
#54
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Posts: n/a
what happens with an rrsp is this
sy right now you are making 80 grand a year your tax bracket is say 34% you put money into an rrsp and don't have to pay tax on the money put in there (thus you recieve 34% of the rrsp back)
so you turn 65 and now your income including the 10grand a year you remove from the rrsp is 45 grand a year .......so now you only pay 28% tax on that money.
besides the fact you earned all that intrest on the money ...........
that said there are ways to make more money than an rrsp offers but they do carry a higher degree of risk .........
sy right now you are making 80 grand a year your tax bracket is say 34% you put money into an rrsp and don't have to pay tax on the money put in there (thus you recieve 34% of the rrsp back)
so you turn 65 and now your income including the 10grand a year you remove from the rrsp is 45 grand a year .......so now you only pay 28% tax on that money.
besides the fact you earned all that intrest on the money ...........
that said there are ways to make more money than an rrsp offers but they do carry a higher degree of risk .........
02-27-2004, 07:18 PM
#55
50 Watt CAFz'r
Join Date: Mar 2003
Posts: 359
My situation is that i started to work for the government, which has a government pension.
Some of the people (at work close to retirement) tell me i would be throwing my money away investing in RRSP's
They tell me if i do and retire say at 55 and use up your RRSp's by the time you turn 65 is the wisest way to go.
Others tell me of a spousal RRSP where i can put my contributions in my wifes name.
This way she will be in a lower tax bracket because she will in all likelyhood not have another source of income at retirement other then cpp
I agree with DWVV that CPP in all probability might not even exist in 30years.
Thanks for your responses.
Some of the people (at work close to retirement) tell me i would be throwing my money away investing in RRSP's
They tell me if i do and retire say at 55 and use up your RRSp's by the time you turn 65 is the wisest way to go.
Others tell me of a spousal RRSP where i can put my contributions in my wifes name.
This way she will be in a lower tax bracket because she will in all likelyhood not have another source of income at retirement other then cpp
I agree with DWVV that CPP in all probability might not even exist in 30years.
Thanks for your responses.
02-27-2004, 08:11 PM
#57
1000 Watt CAFz'r
Join Date: Oct 2003
Posts: 1,783
Reallity Check: How many people have their wives saving the money because they are too busy blowing every odd penny on car audio gear?
(Feebly raises hand looking around to see if anyone else is)
ME
Wife's plan: Get to the money before he does.
Strategy: Distract him with....
Result: I'm retiring when I'm 40...and I didn't even plan too. Whooohoooo!
Go Wife!
(Feebly raises hand looking around to see if anyone else is)
ME
Wife's plan: Get to the money before he does.
Strategy: Distract him with....
Result: I'm retiring when I'm 40...and I didn't even plan too. Whooohoooo!
Go Wife!
02-27-2004, 08:28 PM
#58
1000 Watt CAFz'r
Thread Starter
Join Date: Nov 2000
Posts: 1,020
I've heard the negative things about taxes and stuff as well, but I will be the first to admit that I don't know enough about rrsp's to form an opinion as to which is the right side. I do know that I turn 25 next month and should have started putting something away when I was about 20, even if it was $50 a month. My financial advisor puts a lot of emphasis on mutual funds, then rrsp so maybe that's the way to go, for me at least. Have to have a serious sit down with him and actually find out where my money would be going.
02-27-2004, 09:19 PM
#60
50 Watt CAFz'r
Join Date: Jun 2003
Posts: 372
Originally posted by Furley II:
</font><blockquote>quote:</font><hr />Originally posted by Gettnbig:
A better way to do it would be to have monthy deduction taken off of each pay cheque pre tax. This will allow you to earn a return through out the year rather than let the government make money off of your money before they give it back. Just a thought.
</font><blockquote>quote:</font><hr />Originally posted by Gettnbig:
A better way to do it would be to have monthy deduction taken off of each pay cheque pre tax. This will allow you to earn a return through out the year rather than let the government make money off of your money before they give it back. Just a thought.
