OMG! Biggest freaking news of this decade!!!!

[BMW Rider]

Originally Posted by albert_dao

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You might want to do some more research on RRSP's. There's a lot of misconceptions about RRSP's, in general, as a tax sheltering vehicle. More to the point, RRSP's offered by MOST banks are a ripoff. However, they are not the only RRSP's out there. Many RRSP's have great value and outrace interested by a long shot.

Most banks offer good RRSP options, its just that so many people choose to go with the safe and boring GICs or the like. If you want better returns, you need to be willing to accept a higher degree of risk. That means investing in money market funds or mutual funds and the like, which all the major banks offer as RRSPs. In fact, some of the best performing funds out there are run by major banks. GICs and such are not a ripoff either. they offer minimal to near zero risk, the trade off is lower returns. If you cannot afford the chance of having your portfolio decrease in value, ie: you will need to use the full value of the investment in a short time frame, then these are the vehicle you should be in. If you can ride out a weak market, then the average higher returns of the other choices will make you more money in the end. The key is to not bail out when its down.

The way I see RRSPs benifiting me is not so much that I will likely see a lower tax rate on the income, but it allows me to hold onto the tax portion of the income and use it to earn more money for me. Basically, I'm adding an additional 30% into my investment. Essentially, I'm reinvesting my refund rather than treating it as a bonus. That additional money will grow for me and end up as an even greater amount. Yes I will have to pay taxes on all of that money eventually, but I will still have a lot more net dollars.

Besides, why let the government have your money and squander it as they so frequently do. Keep it for yourself and squander it on your own ventures.