$500/month for RRSPs???
- Thread starter Keebler Elf
- Start date
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.canucklehead said:
Ohhhh, come to my seminar.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!
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.
Tom Vu, my role model!
http://infomercial.tvheaven.com/tomvu.htm
http://infomercial.tvheaven.com/videos/tom_vu_babes.wmv
http://infomercial.tvheaven.com/tomvu.htm
http://infomercial.tvheaven.com/videos/tom_vu_babes.wmv
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.Sukdeep said:
You're right.Svend said:Tom Vu, my role model!
http://infomercial.tvheaven.com/tomvu.htm
http://infomercial.tvheaven.com/videos/tom_vu_babes.wmv
Great, thanks for the link. Now I can work on my Tom Vu impression.
Compound interest &..... 10 %
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!Keebler Elf said:
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.
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.
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.
- 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.
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 $$$ account size, i think (dont hold me to it) it is $75,000
anyway, whatever, just a tip for those that are interested. He has me in some pretty cool investments, did very well last year
yes he is taking the trailer, he fully disclosed that, all funds pay trailer is my understanding whether or not the load is charged. And no I am not locked into a fund for any period of time, i can sell the next day should i desire and there are no transaction costs. I should note that he does have a minimum $$$ 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
