GST cheques?

[kris_willard]

BUY RRSP"S! Why give your money to the government when you can give it to your self? You may not be able to use them right away but at least your not throwing you money out the window. In effect if your buying lots of RRSP's you income goes down and depending on how much you make...GST cheque!

[albert_dao]

Originally Posted by kris_willard

BUY RRSP"S! Why give your money to the government when you can give it to your self? You may not be able to use them right away but at least your not throwing you money out the window. In effect if your buying lots of RRSP's you income goes down and depending on how much you make...GST cheque!

From my understanding, doesn't your eventual collection of these savings count as taxable income? I might be wrong, but if not, then you're not so much paying yourself back as delaying the inevitable rape. Come to think of it, if that's the case, the this is a horrible idea because of inflation...

I hope I'm wrong.

[kris_willard]

When you convert your RRSP's to a RIF they are paid back slowly to you so that you dont get hit as hard, Im not an acountant but i believe that when you do retire you pay less in taxes. Keep in mind that when you contibute you are also getting a tax return which in turn is like free money. Also you are being paid interest on you RRSP's until you retire as well as when they are being paid back to you in a RIF, so unless you keep your RRSP's in a non interest bearing account you should keep up to inflation plus some. JUST DONT TAKE THEM OUT BEFORE YOU RETIRE!

[G1GY]

In a perfect world it would work this way. Now what happens if you kick off a few years into retirement? (This is totaly possible.) Now whom ever you left your money to takes a super huge hit on the whole amount. (Government wins!)

Let's say you need some or all of the money before you retire and withdraw funds. Huge tax hit! (And the government wins again)

What if you need to withdraw more than your master plan has alloted for in your golden years? Guess what? Huge tax hit! (Guess who wins?)


I know people that have retired and did save up through RRSP's through most of their working life that say they wish they would have done things way different.

[kris_willard]

Originally Posted by G1GY

In a perfect world it would work this way. Now what happens if you kick off a few years into retirement? (This is totaly possible.) Now whom ever you left your money to takes a super huge hit on the whole amount. (Government wins!)

Let's say you need some or all of the money before you retire and withdraw funds. Huge tax hit! (And the government wins again)

What if you need to withdraw more than your master plan has alloted for in your golden years? Guess what? Huge tax hit! (Guess who wins?)


I know people that have retired and did save up through RRSP's through most of their working life that say they wish they would have done things way different.

1) Nope, not taxed on inheritance
2) Dont take out the rsp, borrow against it, and write off the interest.
3) If you plan on making what you making now when you retire why are you saving? And no its not a huge hit it will be the same if you had a job and made that much.

[G1GY]

Right now Canada, Australia and New Zealand are the only industrial countries without an inheritance tax. Do you think yhis is going to last forever? This is some thing that's been on the wish list of our greedy government for a while even if you don't hear about it allot. Fact is that ideas have been bouncing around on how to set up a better system than other countries.

Here's a link to the NDP Idea


http://www.nupge.ca/news_2004/n20jn04a.htm

Just something to think about.

[kris_willard]

You can if and or but your way out of anything, but if RRSP's are so bad then why are they included in almost every long term financial plan? If you want to save for retirement and save yourself from paying anymore taxes than you absolutely have to, RRSP's are the way to go. Im not saying this is the only way to save your money but i can defineately help. I will also say that RSP's are not for everyone.

**EDIT** I just read the article and that is on ALL inheritance not just rrsp's so no matter where you put the funds your going to be taxed. As the aricle states:
"Only 2.5% of Canadian families would be affected by an NDP-style inheritance tax."
So odds are that this wont effect anyone that any of us know, if it were even to happen. The next point is that it is only taxed at 17% which is lower then almost all retirement pensions let alone what you are being taxed now (unless you are making less then 8k/yr). This would have no effect on the average canadian. So put your money in RSP's or in Securities or purchase revenue properties, if its over 1million you gunna get hit no matter what...

[EmilyB]

Just hope there's any RRSP money there after those baby boomers cash out....