RRSP's

[matéo]

Probably the smartest thing I have invested in since I bought a travel coffee maker. Security is a good feeling.

[wishbone]

i concur!

[Kandyapple]

I didn't end up contributing much last year. I need to set up an auto withdrawl with my bank for this year, so I don't have to pay it in a big chunk at the end to get a break on my income tax.

[Bitchin]

yay for rrsp's!

[wishbone]

ps: more features of the travel coffee maker if it was a worthwhile investment as well!

[TrixX]

ya i started putting away almost 2 years ago now.....with an auto-withdrawal. otherwise there'd be NO money in there! its worked itself up to a pretty penny......feels good looking at it at the end of the year

[Chewy]

im very happy that my mom made me do my rrsp's about 4 years ago. who wants to work till they are 65.. i want to be retired in my 50's at least

[nabs]

i should start one.

[ebbomega]

I agree. And it's not just to retire early. Seriously, you expect the Canadian Pension to be any good when we get into our older years? yeah, right.

Not to mention, a tax refund is always something nice to see...

[SEAN!]

Originally Posted by ebbomega

I agree. And it's not just to retire early. Seriously, you expect the Canadian Pension to be any good when we get into our older years? yeah, right.

Not to mention, a tax refund is always something nice to see...

the cpp has its liabilities for the next 75 years covered. its the money in your self directed rrsp's and work benefit plans you need to worry about.

[Leviathan]

I toss a bit into RRSP's every year but the return is horrible. Being relatively young I tend to keep most of my investments in higher yield stuff such as stocks and mutual funds.

[e_BoY]

yea smart move indeed. Just started half a year ago or so. I deduct 4% of my pay check every 2 weeks and my work will match the 4% so it would also be dumb not to.

[BongMan]

I started my RRSP's at 18 best thing I ever did I already have about 8 grand saved into them and loving the tax break

[krisamata]

ya im glad i have mine, i started them years ago and can't wait to not have to worry as much when i get older

[Ree Fresh]

Ive thought about them, but my dad sugests im too young to bother wtih them right now. I think ill wait a few more years. For now Im investing in my car (after it's an appartment) and im hooked up with some wiked benifets in my job :D

Rhia, your dad couldn't be more wrong. It is never too early to save for your retirement. CPP may not be around when you retire. We pay into it, but we may not see it when we get around to retiring. And really, by the time we retire CPP will be able to pay for our food stamps. I am currently saving my RRSP's to buy a house. I am earning roughly $50 per month in interest on a small amount.

ps - I also have the government take and extra $10 per cheque off in taxes. Makes for a sweet return.

[Leviathan]

Returns on RRSP's are terrible, 4% or something the only reason I put into them at all is because of taxes and saving for a down payment on a house.

[KenJi]

I started my RRSP's about A year and half ago too.

The thing I'm liking about it this year is. I wouldn't be getting any money back on my income tax if I didn't have the deductions thanx to my RRSP's.

I'd definetly be paying money back to the gov this year

[Ree Fresh]

Originally Posted by Avana

Rhia, your dad couldn't be more wrong. It is never too early to save for your retirement. CPP may not be around when you retire. We pay into it, but we may not see it when we get around to retiring. And really, by the time we retire CPP will be able to pay for our food stamps. I am currently saving my RRSP's to buy a house. I am earning roughly $50 per month in interest on a small amount.

ps - I also have the government take and extra $10 per cheque off in taxes. Makes for a sweet return.

I believe this is why my dad convinced me not too >>>

Originally Posted by Leviathan

Returns on RRSP's are terrible, 4% or something the only reason I put into them at all is because of taxes and saving for a down payment on a house.

As soon as you take the money out you get taxed. Except when you retire and you can then cash in your RRSP's with out being taxed. So if your saving for a house... RRSP's are near usless. I think my dad said I may as well save for a down payment on a house in some other way that gives more intrest.
I know the regular CPP is shite, but with my benefets I also get a bonus CPP on top that the union is supose to double or somthing (yeah I should check)

Then again I could have this all wrong???

[Leviathan]

I think if your a first time homebuyer you can actually borrow from your RRSP for your downpayment without paying the taxes but you have to pay it back over a period of time. I'm not 100% sure on this though.

on a side note I just got a 15% return on one of my stocks over the period of a couple months. Its not great but its better than 4% :)

Originally Posted by R Wellbelove

I believe this is why my dad convinced me not too >>>


As soon as you take the money out you get taxed. Except when you retire and you can then cash in your RRSP's with out being taxed. So if your saving for a house... RRSP's are near usless. I think my dad said I may as well save for a down payment on a house in some other way that gives more intrest.
I know the regular CPP is shite, but with my benefets I also get a bonus CPP on top that the union is supose to double or somthing (yeah I should check)

Then again I could have this all wrong???

Originally Posted by R Wellbelove

I believe this is why my dad convinced me not too >>>


As soon as you take the money out you get taxed. Except when you retire and you can then cash in your RRSP's with out being taxed. So if your saving for a house... RRSP's are near usless. I think my dad said I may as well save for a down payment on a house in some other way that gives more intrest.
I know the regular CPP is shite, but with my benefets I also get a bonus CPP on top that the union is supose to double or somthing (yeah I should check)

Then again I could have this all wrong???

I am currently earning very high interest on my RRSP's. Just under $50 a month on a low amount. My high yield savings account through ING isn't that good.

Leviathan, you can do a one time loan against your RRSP's tax free for either a first time home, or education. The amount you borrow needs to be paid back over 25 years.

Rhia, I take out an RRSP loan every year. After I pay it off, I drop it into either a GIC, or get my bank to invest it in something that will yield me lots of interest/returns. And both you and I are in such high tax brackets, we should be contributing to RRSP to ensure we don't end up paying at the end of the year!

[ebbomega]

Originally Posted by R Wellbelove

Ive thought about them, but my dad sugests im too young to bother wtih them right now. I think ill wait a few more years. For now Im investing in my car (after it's an appartment) and im hooked up with some wiked benifets in my job :D

Yeah, what Avana said. Your Dad is dead wrong.

The sooner you start saving, the sooner the interest compounds itself.

"The best time to start saving for retirement was 10 years ago. The second best is NOW."
- David Chilton, The Wealthy Barber (not verbatim)

[diva]

^ And according to the Author of the Wealthy Barber, it's better for young people to invest in Mutual Funds (instead of RRSPs) because of their higher rate of return.

I think if your a first time homebuyer you can actually borrow from your RRSP for your downpayment without paying the taxes but you have to pay it back over a period of time. I'm not 100% sure on this though.

Yeah, each person can borrow up to $20,000 from their RRSPs without having to pay tax on it. So if two people are buying a home together for the first time, they can borrow put down $40,000 from their RRSPs. I'm not sure how long you get to pay it all back, though.

If I didn't have to pay back student loans, I would be putting $1000-$1500/month into savings right now. (combo of mutual funds and RRSPs)

[baby-phat]

I'm gonna start saving and investing just as soon as I get a decent job. :)

[starbright]

you can't get student loans if you have rrsp's.
so then when you finally graduate you're stuck w/ tons of debt AND you're behind in the saving game. sweet.