$500/month for RRSPs???

drlove

Ph.D. in Pussyology
Oct 14, 2001
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Stoo said:
Retirement planning would be so much easier if you knew when you were going to die. Post-divorce, which will set me back over $1,000,000.00 over the next few years, took a bit of a toll on my retirement savings.

My new retirement plan involves a much younger wife with a great job, lottery winnings, and eventually, suicide. I also intend to write a book explaining the benefits of my plan, which will become a best seller and add significantly to my retirement income.

See.... nothing to it!
Try getting a pre-nup next time! :p
 

drlove

Ph.D. in Pussyology
Oct 14, 2001
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canucklehead said:
Borrowing on the credit card i would almost never recommend...but if u have to u have too. Most banks with give you a line of credit at prime if it is for an RRSP purchase with them..... they make money both ways.
Almost never is the key here. As I mentioned previously, if you are lucky enough to receive a special interst rate on a credit card, why not take full advantage?? In my case, the banks noticed that I was borrowing a lot and therefore kept renewing it. In effect, I have benefitted from a perpetual borrowing rate of 2.9% over the past few years, which beats prime any day of the week. Incidently, my resource fund realized a return of 34% over the course of 2005. :D
 

Meister

Well-known member
Apr 17, 2003
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Stoo said:
Retirement planning would be so much easier if you knew when you were going to die. Post-divorce, which will set me back over $1,000,000.00 over the next few years, took a bit of a toll on my retirement savings.

My new retirement plan involves a much younger wife with a great job, lottery winnings, and eventually, suicide. I also intend to write a book explaining the benefits of my plan, which will become a best seller and add significantly to my retirement income.

See.... nothing to it! :D
Ohhhh, come to my seminar.
You must me that Vietnamese dude who cracked me up in the eighties selling his real estate seminar on late night TV. He used to be on this luxury boat with buxom babes on his arm. His name escapes me.
 

dunkula

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Nov 13, 2004
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Meister said:
Ohhhh, come to my seminar.
You must me that Vietnamese dude who cracked me up in the eighties selling his real estate seminar on late night TV. He used to be on this luxury boat with buxom babes on his arm. His name escapes me.
Yeah I remember those late night infomercials with the oriental dude, I think his name was Johnny Wu or something like that.
 

drlove

Ph.D. in Pussyology
Oct 14, 2001
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Sukdeep said:
Keep in mind that the $1.5 million is forty years away (if you started at 25). Assuming annual inflation of 2%, everything (on average) is going to cost at least twice as much (about 121% higher) at age 65 than it did at age 25. The point being that $1.5 million isn't as much as you think...forty years from now.
Yes... not to mention that you will be taxed when you withdraw money from your RRSP, albeit (most likely) at a lower rate. Also, bear in mind that there may be back end load fees to contend with.
 

Chivas Regal

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Jul 5, 2002
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Compound interest &..... 10 %

Keebler Elf said:
I'm not so interested in whether or not it's a good idea. I think that answer is obvious. I'm more interested in whether or not it's realistic for the VAST number of Canadians. Yeah, it's great an' all to recommend people invest $500 a month in an RRSP, but if you're only making $25,000 a year (or whatever the average happens to be), it might not be that realistic. And in that case, the strong advocacy of RRSPs may just be a strategy to get people to save so that the CPP doesn't need to be around around anymore...

edit: hmm, the national family average seems to be around $60K. That's a lot more than I expected. Maybe it's not so unrealistic afterall...
So you can't manage $500/month...the other secret to financial success is to save 10% of everything you earn. Start doing that at 12 yrs old when cutting the neighbours lawn, and you will be set for life!
 

xarir

Retired TERB Ass Slapper
Aug 20, 2001
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RSPs are fantastic and I'm a firm believer in them. But you have to keep in mind that the tax aspect of RSP may not be as big a deal in the long run. Eventually your hard earned RSP (Registered Savings Plan) has to be converted into an RIF (Registered Income Fund) when you retire. At this point, everything you've saved over the years is paid out to you over whatever timeframe is appropriate. At that time, the theory is that you're in a lower tax bracket and therefore pay less tax, but this isn't always true.

Just something to keep in mind. I still advocate saving as much as you reasonably can though and an RSP is a good way of doing it.

As to Chivas' point above about saving 10% of what you earn, on the flip side I personally try to give away at least 5% of what I earn to various charities. There are lots of worthy causes out there so if you can, try to support at least one.
 

fuji

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It's not just that you are in a lower tax bracket. It is that your earnings in the meantime compounded tax free.
 

C Dick

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I have no RRSPs, my tax planning is a little more complicated than most peoples. Some reasons not to have RRSPs:

- My Dad is the most frugal person I know, he is living on his pension, and saving a ton of money every year. He has a paid off house, no car, no new clothes, no hobbies, and eats cheap food. His RRSPs will soon require that he be withdrawing the cash, but he has no need for it, he could live on half the pension. When I look at his life, I think that he should have had more fun, not saved more.
- Other investments can show better returns, even with the tax savings. There are numerous tax advantages to operating a small business, including a large (and likely to increase) capital gains exemption. The beauty of real estate is that you can buy with a lot of leverage and make a very large return. Tom Vu was right.
 

drlove

Ph.D. in Pussyology
Oct 14, 2001
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C Dick said:
- My Dad is the most frugal person I know, he is living on his pension, and saving a ton of money every year. He has a paid off house, no car, no new clothes, no hobbies, and eats cheap food. His RRSPs will soon require that he be withdrawing the cash, but he has no need for it, he could live on half the pension. When I look at his life, I think that he should have had more fun, not saved more.
Perhaps, but better to have too much, than not enough.
 

Ares

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Mar 11, 2005
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if anyone is interested

i found a guy would offers all mutual funds, no load (no front or back) PM me if you want contact info, he is north of TO

cheers
 

Ares

Member
Mar 11, 2005
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yes he is

yes he is taking the trailer, he fully disclosed that, all funds pay trailer is my understanding whether or not the load is charged. And no I am not locked into a fund for any period of time, i can sell the next day should i desire and there are no transaction costs. I should note that he does have a minimum $$$ account size, i think (dont hold me to it) it is $75,000

anyway, whatever, just a tip for those that are interested. He has me in some pretty cool investments, did very well last year
 
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