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Only reason I am asking, you get dinged 31% if you take out over $15000 and you get dinged again because the Canadian / Quebec government consider it income. So honestly, what is the use to have something like this, if you are just going be penalized for saving money.

 

:mad:

 

$15000 turns into $10350 which turns into $9016.75

 

:mad:

 

At least the TFSA you don't get taxed but there is a limit on how much you can put in. If you haven't put in any money since they started in 2009, you deposit $15,000 and whatever you make from it is tax free :highfive:

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You're not supposed to touch it now, you're way too young to even retire any of it now.

 

Whatever you're doing, you're doing it wrong! lol

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The whole purpose of an RRSP is for someone of a high income tax bracket now to defer taxes to retirement when they will presumably be in a lower income tax bracket.

 

Unless your income is fairly large, you are probably better off investing through a TFSA. (you can thank Stephen Harper for the creation of TFSAs).

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The whole purpose of an RRSP is for someone of a high income tax bracket now to defer taxes to retirement when they will presumably be in a lower income tax bracket.

 

It doesn't always work so well though, if you save "too much" or end up with a deceased spouse who also had a big RRSP savings, then your income starts being too high or you run the risk of leaving too much in it :S.

 

Typical of government-promoted schemes it is worse than just taking your cash under the table and sticking it in the mattress... the ability to extract RRSP cash for buying a house is useful though you have to pay it back into the RRSP to avoid taxation (oh come on)

 

TFSA sucks because you pay tax on the way in, RRSP sucks because you pay tax on the way out, everything always tax tax tax :(

Edited by Cyrus
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I haven't touched my money (RRSP), I won't until like 65-70. It is funny though, you save for your retirement and the government penalizes you. Why not just go into debt for millions, seeing governments can operate on billions on debt, why can't we?

Edited by jesseps
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  • 3 weeks later...
Stephen Harper continues his campaign to turn the Toronto suburbs blue on Thursday with an enticement to help Canadians protect their nest eggs.

 

Harper will announce an upgrade to the tax-free savings accounts the Conservatives created in 2008, said a Conservative source, without providing further details.

 

The accounts allow individuals to sock away up to $5,000 per year without paying taxes on any interest or capital gains they make on investments.

 

More than 4.8 million Canadians have opened tax-free savings accounts, building $19 billion in total assets, according to the Department of Finance.

 

Harper will unveil the changes in the Ontario riding of Vaughan, which incumbent Julian Fantino is fighting to keep Conservative after winning a byelection last November. Fantino, the outspoken former Ontario Provincial Police commissioner, won the riding after Liberal Maurizio Bevilacqua gave up the seat to run for Vaughan mayor.

 

Fantino won the byelection by a 964-vote margin.

 

Harper will also speak at a rally in the riding of Hamilton Centre, where the incumbent is New Democrat David Christopherson. The NDP hold all three ridings in "Steeltown," but the Conservatives hope to change that on May 2.

 

It will be the second straight day Harper spends in the Greater Toronto Area. On Wednesday evening, he addressed a rally in Ajax-Pickering, where Liberal incumbent Mark Holland is facing off against Chris Alexander, Canada's former ambassador to Afghanistan.

 

Read more: http://www.canada.com/Tories+upgrade+free+savings+accounts/4573343/story.html#ixzz1Ipy2OBmo

 

I wont if he will raise the limit to like $10,000 or allow you to choose if you want to put 16-18% of your money towards the RRSP or TFSA. I know in my dreams lol

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Read more: http://www.canada.com/Tories+upgrade+free+savings+accounts/4573343/story.html#ixzz1Ipy2OBmo

 

I wont if he will raise the limit to like $10,000 or allow you to choose if you want to put 16-18% of your money towards the RRSP or TFSA. I know in my dreams lol

 

Yeah, you'll be able to put in $10,000 a year!* :D

http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20110407/main-election-110407/20110407?s_name=election2011

 

*once the books are balanced

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