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By Guest Blogger Sinan Terzioglu
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A recent RBC poll found 53% of us are contributing to Registered Retirement Savings Plans (RRSPs) – up 7% from 2021. While an increasing number is positive, many are not utilizing this tax-advantaged account nearly enough or at all as Canadians have over $1 trillion in unused RRSP contribution room. With the March 1 deadline for 2021 RRSP contributions fast approaching, everyone should ensure they’re taking full advantage of their available contribution room.
The RRSP is a very powerful tax planning tool as the government allows you to deduct contributed amounts from your gross income, deferring taxes in higher tax bracket years and paying less when funds are withdrawn during lower tax bracket years. Many receive tax refunds which should be used to contribute to investment accounts such as TFSAs. So by contributing to your RRSP and investing the tax refund you instantly increase net worth while also enabling investments to grow tax-deferred.
The contribution limit for 2021 is the lesser of 18% of your earned income in 2020 or $27,830. Unused room is carried forward and can be used in addition to the 2021 deduction limit. A little-known fact is that you do not have to claim the RRSP deduction in the same year the contribution is made. It can be carried forward to future years which is ideal if it makes more sense tax-wise. For example, if you expect to be in a higher tax bracket in the future you can still contribute to the RRSP now (or a spousal RRSP) and claim the deduction in a year you are in higher tax bracket. Thereby you maximize your tax savings while being able to invest tax-deferred in the RRSP as early as possible.
Money Left On The Table
Most Canadians will not have a defined benefit pension plan when they retire as most employers have increasingly moved to Defined Contribution plans. Unlike DB pension plans, DC plans do not guarantee an income in retirement but most offer an employer contribution match, up to a certain percentage. This is essentially free money and anecdotal evidence suggests many Canadians are not taking advantage of employer matches, leaving money on the table. Every little bit counts and most are surprised to see how much their regular contributions and employer matches add up to after just a couple of years.
Assets to Hold and Not Hold in an RRSP
Canadian mutual fund assets now total nearly $2 trillion dollars. Many investors don’t realize Canadian mutual funds are amongst the most expensive in the world with management fees averaging over 2%. Paying higher fees may be justified if performance is above average but history shows that over 90% of active fund managers have underperformed their benchmarks and will very likely continue to.
ETF management fees are a fraction of mutual fund charges. Some ETFs cost as little as a few basis points and since many ETFs are passively managed they often perform better than actively managed mutual funds. Needless to say, it’s hard to beat the combination of less expensive and better long-term performance.
For most, the best RRSP asset allocation is a mix of low-cost growth ETFs tracking global equity markets and ETFs holding a variety of government and corporate bonds. Ideally you should aim to allocate the higher yielding bonds in your portfolio to your RRSP so that you are shielded from the higher taxes on interest as well as US listed dividend paying ETFs because there are no US withholding taxes deducted from the dividends received, unlike when US dividends are taken in TFSAs and RESPs. This is because, under the US-Canada tax treaty, the US IRS recognizes RRSPs as retirement accounts.
Focus on Investing & Not Speculating
With brokers such as Wealthsimple offering $0 commissions and the ability to trade from handheld devices it has become too easy to trade frequently and essentially gamble. Frequent trading may be fun but over time it is not profitable for most. Countless studies have shown those that frequently trade in and out of the market underperform by a wide margin.
Some are tempted by the allure of higher returns with leveraged ETFs which move by 2-3 times the daily return of an index or commodity but many do not realize that leveraged ETFs reset daily so consecutive big down days can quickly lead to catastrophic losses. Some learned this the hard way with leveraged crude oil ETNs (exchange traded notes) in March 2020 when the price of crude oil futures contracts briefly went negative. Most speculators lose money over time and when combined with leverage losses are often significant so it’s best to steer clear of all ETFs that utilize leverage.
When a permanent loss is suffered in an RRSP the contribution room that was earned is lost forever so assets in an RRSP should be invested conservatively. If you are going to speculate or invest in a higher risk securities with a portion of your assets, it’s best to do so in a non-registered account, That way future capital gains can be offset by capital losses.
Home Buyers Plan
While RRSPs should be predominately used for retirement savings they can also be used for the purchase of your first home. The Home Buyers’ Plan (HBP) is a program allowing withdrawals up to $35,000 from an RRSP tax-free, but you have up to 15 years to repay the withdrawn amount. The repayment periods starts the second year after the year of withdrawal so if you utilize the HBP and withdraw funds in 2022 repayments start in 2024. The minimum annual repayment is 1/15th of the withdrawn amount but the full amount can be returned at any time. If you miss or pay less than required for the year, you have to include the amount not paid as taxable income.
When Not to Maximize RRSP Contribution Room
For those with defined benefit pension plans it’s best to first focus on maximizing TFSAs because, as with withdrawals from an RRSP, pension income is fully taxable. So if your pension income doesn’t fully cover costs you can withdraw from the TFSA without being pushed into a higher tax bracket.
Some have the ability to commute their defined benefit pension when leaving an employer and I believe it makes sense for most to do so. You will have more control over your assets and be able to leave them to loved ones after you pass, which is not the case with most pension plans. Also, you are able to allocate the commuted assets in a tax efficient way for a higher rate of return and also less tax.
When you commute a pension, part of the lump sum payment will be subject to locking-in provisions to ensure funds are available in retirement. This portion will be transferred to a LIRA (Locked-In Retirement Account) and the balance of the lump-sum payment given in cash and brought into income. If you think you may commute a pension at some point, I suggest not maximizing RRSP contribution and carrying room forward. When you receive the cash portion of the lump sum payment you’ll have the ability to transfer it to your RRSP and defer taxes.
Sinan Terzioglu, CFA, CIM, is a financial advisor with Turner Investments, Private Client Group, Raymond James Ltd. He served as vice-president of RBC Capital markets in New York City and VP with Credit Suisse in Toronto.
115 comments ↓
Interesting stats and info.
I overcontributed this year. (forgot I contributed earlier in the year with my entire tax refund).
I’m just under the 2k “over contribution” limit.
The “employer contribution match” was a great “free cash” bump up when I was a salaryman in my earlier work life.
I took full advantage of it while my co-workers saw it as , ” The company keeping my contribution money”.
Ignorance isn’t bliss when you’re retired and broke….The
#93 All lies and manipulated u decide on 02.10.22 at 7:16 pm Got a plumbing quote always shocking. $155 an hr now 2 guys 1 day $2,325.00 WTHell!?
^^^
Hey buddy this is what Smoking man told us. That the “rich” look down on the guy with his name written on a big patch on his shirt. Perhaps only a high school education + trade. But that guy is charging them whatever he wants when it comes to their house. If/when he even shows up. Cause nobody else will show.
Unlimited billing. No pesky Law society or College of Physicians behind him wagging a finger. We’re talking pure unregulated forced capitalism. Sign here, pay up, else a trade lien will be put against your home. Or a job left unfinished.
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#118 IHCTD9 on 02.10.22 at 9:11 pm
^^ Are you the next Smoking man type? Ghosted/deleted while bozzing? Why not start your own weblog and we’ll hop over. Unmoderated & raw. Gartho would be glad to rid this blog of us lol
Day 4 of the GF withdrawal program and a new post, yet again!!
Since the Federal gov’t is starving for revenue, perhaps they can let the financially responsible ones on here purchase additional RRSP room from the ones who aren’t using it? How about a 10% flat rate!
Great post. Really clear and solid advice. My son is about to buy his first home, and was thinking about using his RRSP. I did not know there was a minimal amount required to repay yearly. Thank you! The lack of comments is interesting. But you usually have to rock the boat to wake up the steerage section. Thanks for the post!
Great Advice – thank you. I will be commuting my Defined Contribution plan in a few years and keeping a portion of my rrsp room available to offset the tax hit. The value will be around 400K. How do I find out what percentage of it will be in cash?
I see myself and my better side in today’s picture.
Frolicking in the grass on a perfect sunny day.
Not a care in the world.
And then I wake up.
Don’t forget to marry a much younger spouse. 15 years seems about right. Then you can set your RIFF withdrawal rate on the age of the younger spouse once you convert from RRSP to RIFF.
That said, the RRSP is not treated fairly when compared with a GoC DB plan. Limits to the RRSP contribution are too low. Why should someone be limited by salary—especially when they are taking all the risk?
Anyone notice how happy these retirees look, with no dog in the picture…
—Supply Chain/shortages here in the Former First World Countries. Man they are pushing this hard.
Every angle, every week. Even the Ottawa airport also is getting blockaded.
.Truckers Plan Their Own Freedom Convoy from California to Washington, D.C. to Protest Authoritarian COVID Mandates (arizonasuntimes.com)
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— Ontario Declares (another) State of EMERGENCY. Do not be surprised. This is global WW3. This is set to run for many more years, likely 2025. Unlimited power.
Ahem, from last AUG:
#24 TurnerNation on 08.28.21 at 1:06 pm
Things which have the permanency in Kanada:
1. Fictional ‘State of Emergency’.
2. Flags at half mast
3. CV Rules. Always the rules Comrade.
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— Almost back to normal guys! School children all over the country are set to walk out. After 2 years of losing normalcy.
https://twitter.com/anthonyfurey/status/1491894840065470472
Thank you Sinan!
great read and information as always.
Thanks Sinan!
For dual US citizens who elect to return to the US before taking RRSP distributions, here are some very important points:
1. The US taxes gains in the RRSP; however, the cost base is the value as at time of tax residency change, not including unrealized gains. So, realize all gains before changing tax residency, which will basically make your US capital gains tax only appreciation from that point on- further, this action makes no difference in Canada, since distributions are taxed at one’s nominal tax rate by CRA, and…
2. As a US resident, the Canadian withholding on regular RRSP distributions is 15% (25% for lump sum). If properly planned per #1, there will be no capital gains / no US tax on the distribution and the tax paid to Canada can be used purely as a credit to US taxes. Pay 15% withholding to CRA/claim the same credit on US taxes.
3. These provisions mean that those who take distributions as a US tax resident can pay almost no RRSP tax. So build the RRSP to a max, gaining the tax advantage every year, then take distributions at a far reduced rate.
It is actually a silver bullet.
Disclaimer: The SA dynasty’s main goal is to benefit its own members; therefore the above information may not be applicable to every situation and should be reviewed with one’s own tax and legal professionals.
How much is too much, and how does one get it out tax free so to speak. If a couple high income earners follow this advice and put away the max for 30 years they would have $5,000,000 in funds to draw down. Seems excessive and unwieldy to try and work with that much, would it not be better to invest in the an unregistered account and avoid the forced withdrawals at marginal tax rate. They could buy good growth funds and just pull out what is needed at half the hit of an RRSP.
Thanks.
Is this Garth’s stolen flag??
https://twitter.com/rhindi800/status/1492114047269023746/photo/1
Thanks Sinan and your team for another informative post.
Most that come here already know the sooner one can start saving for retiring the more advantageous the benefit of compound growth of course.
If you’re able, one way is to have a % of your pay automatically put into an investment vehicle. That way you aren’t tempted to spend it on stuff you really don’t need at the moment anyway.
Do the young people you know or your fiends, know it yet? Make sure you remember to tell/teach them this important life lesson too!
Question;
Given the inflation we are see and many keep seeing with all the government borrowing to spend more than the taxes taken in, might there be any advantage to looking at putting a bit of money into gold or gold producing companies ETF. Any thoughts on the pros and cons. Just wondering because,
I keep hearing the example of, if you put an once of gold with equivalent $ years ago into a hole and then dug it up today, and compared it’s buying power today… In an inflationary time period of course…
Thanks in advance for any thought you have on gold.
My firm does a decent RRSP match.
One thing that has happened a few times is that an employee elects to not maximize the match, so we’ll have a sitdown to explain how completely illogical such an action is; and further, in an engineering company, it is expected that professionals intending to progress an engineering career will make logical decisions.
Rationality.
Who will ever forget this game?
I am a Canadian. I own the spirit of what it means to be one. As a child and my early adult years, I played a lot of hockey. On rinks, on frozen ponds, lakes, streams and in neighbors backyards. We were free and had a lot of wonderful memories from those days.
I’ve also watched years’ worth of hockey and adore the sport, because of its intensity and skill and I miss the smell of the ice of an arena. All of us who live in Canada understand this. We each have our own recollection of which hockey game had the most reverence and excitement, but for me it was the Olympics held in Vancouver in 2010. The hockey playoffs meant a lot to me, because the stakes were high and the opposing teams (first Russia) then the incredibly talented and formidable USA team in the playoffs.
As the final round of games between Canada and USA unfolded, the teams were so evenly matched in skill, the adrenaline and pure excitement was palpable. Every Canadian was watching with nervous anticipation and hope their team would be victorious. Our pride was on the line as a nation. The world was watching too. Our stomachs were wrenched with emotion as the great Canadian team battled the great American team. I even chewed my fingernails and toenails off during that series!
The games went into overtime, then double overtime. In a brilliant display of sportsmanship, the winning goal by Sir Sidney Crosby was indescribable. It was an ERUPTION of epic proportions as Canadians ROARED, JUMPED AND YELLED WITH UNPRECEDENTED DELIGHT!
You could hear the cheering roar from every corner of Canada, east-to-west, and north-to-south. It was like a nuclear explosion. In a split second, I launched straight up off the couch with such vigor I blasted through the living room ceiling and was discovered in the attic of my home. THANK YOU, SIDNEY CROSBY!!
Do you remember that goal?
Do you remember where you were when it happened?
Do you remember the energy of pride of being a Canadian at that moment?
….OF COURSE YOU DO. Nobody will ever forget.
Now fast forward to 2022 and the freedom convoy of truckers in Canada. You are part of it, and so is the collective energy of Canada. It feels good to call this country home because we love it so much.
When mandates are finally erased for good, just watch and feel the National pride of its citizens erupt 1000 times more than that wonderful hockey game of 2010.
Thank you, Canada, for cheering, the winning goal is right around the corner, never give up, the excitement is building!
4 Outwest on 02.11.22 at 10:31 am
Great post. Really clear and solid advice. My son is about to buy his first home, and was thinking about using his RRSP. I did not know there was a minimal amount required to repay yearly.
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Joni Mitchel on the RE mania in Canada:
And the seasons, they go round and round
And the painted ponies go up and down
We’re captive on the carousel of time
We can’t return, we can only look
Behind, from where we came
And go round and round and round, in the circle game
Hi Sinan et al,
For our situation we are past contributing to RRSP as of 2021 and moving away from employment income for the most part.
The advisor has us set up a RRIF already where we use it as a flow-through vehicle, as in 30k in to RRIF from RRSP and then out of RRIF to a non-reg account.
Can anyone tell me if there a downside or benefit to this set-up? As long as we exceed the minimum RRIF withdrawal requirement it seems okay…
Cheers, R
Today I Learned more about RRSPs.
Thank You Sinan.
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#77 Faron on 02.10.22 at 5:47 pm
#72 CanadianOne on 02.10.22 at 5:06 pm
#64 Steven Rowlandson on 02.10.22 at 4:19 pm
#42 Lord Garth of Izar on 02.10.22 at 1:56 pm
Ryan, what have you done??? Naked shorting, Melvin Capital, Citadel. All the meme stock tropes are weeping back through the coat of paint time has put over January, 2021
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Okay putting aside your “coat of paint time has put over”…. cop out; why is there, in your mind, just one way to do things. Do you just only need a hammer?
Forget about the memes…. Show me a yield generating avenue that is on par with the way Defi does it. Really it’s a race to overcome middlemen, to me. But the question stands, feel free.
“Canadians have over $1 trillion in unused RRSP contribution room.”
Then it’s settled.
Give Canadians $1 trillion in cash to fill their RRSPs.
I mean, since not every business offers even a DC plan.
We need this security guard to remove the law breaking protesters from Ottawa.
https://www.dailywire.com/news/security-guard-at-school-board-meeting-physically-removes-maskless-man-drags-him-out-of-meeting
#13 detective
Is this Garth’s stolen flag??
https://twitter.com/rhindi800/status/1492114047269023746/photo/1
My guess is not. You can buy Canadian flags online the same size as the Peace Tower flag he had (or bigger!)
https://canadaflagshop.com/shop/index.php?main_page=index&cPath=1_12
#2 TurnerNation on 02.11.22 at 10:05 am
#93 All lies and manipulated u decide on 02.10.22 at 7:16 pm Got a plumbing quote always shocking. $155 an hr now 2 guys 1 day $2,325.00 WTHell!?
^^^
Hey buddy this is what Smoking man told us. That the “rich” look down on the guy with his name written on a big patch on his shirt. Perhaps only a high school education + trade. But that guy is charging them whatever he wants when it comes to their house. If/when he even shows up. Cause nobody else will show.
Unlimited billing. No pesky Law society or College of Physicians behind him wagging a finger. We’re talking pure unregulated forced capitalism. Sign here, pay up, else a trade lien will be put against your home. Or a job left unfinished.
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#118 IHCTD9 on 02.10.22 at 9:11 pm
^^ Are you the next Smoking man type? Ghosted/deleted while bozzing? Why not start your own weblog and we’ll hop over. Unmoderated & raw. Gartho would be glad to rid this blog of us lol
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Let do it!
Trudeau is a authoritarian bully in my view.
I personally despise the man. They have been closing the loop on our freedoms for a while. Subtle but their everywhere. No ones lied more than him and right in your face. The majority are getting poorer with rising costs and taxes.
That’s a form of control as you can afford to travel less eat less. That’s where my kids are. No house for them. If you can make’m poorer their much easier to control.
If you can’t see through this guy you cant see at all.
#107 Craig on 02.10.22 at 8:14 pm
It sounds like you are doing what meets your criteria for risk tolerance. You are also succeeding at the most important part of retirement planning — saving as much as possible on a regular basis. You are doing millennials proud.
From there, IMO, you may want to consider trying to better out-pace inflation. That means talking to an advisor about investment options that meet (or maybe slightly push) your risk tolerance and give you a substantially better return. As a 35 year old, you have a lot of time to absorb a bit of equity volatility and reap the benefits of doing so. Learn about the sharpe ratio and other risk metrics so you can inform yourself about potential draw-downs.
Here are a couple of options but you should listen to an certified financial planner before anyone here.
There are some nice volatility control ETFs like ACWV or XMY (XMY is the CAD hedged and TSX listed version of ACWV). ACWV’s top holdings are rock solid companies and the diversity is global and multi-sector. Here’s the link:
https://www.ishares.com/us/products/239605/ishares-msci-all-country-world-minimum-volatility-etf
Scroll down to the holdings and flip through them. Solid ESG score to-boot (if that matters to you). Sharpe 0.71
I was looking at VVL last night. Not a volatility control fund, but value oriented and it’s had incredibly low volatility of late with high returns. Sharpe 0.53. Also loaded with very strong corporations. Lower in the ESG department.
Both of these will enable you to keep your head above the inflation rate. Start small if you go self-directed. but you should really talk to a professional. Given your steady savings and young age, the blog hosts may take your business as you sound like a great long-term client. Everyone wins.
Every tom dick and harry say that it is impossible for BOC to raise rates. The gov’t has printed too much money and can not service the debt is rates go higher.
Higher interest payments + less revenue because real estate will slow down with rate increases.
What is your thoughts? Bank of England did a 0.5% rate hike – any chance of this in Canada or USA?
#21 PONZIUS FLATULOUS
We need this security guard to remove the law breaking protesters from Ottawa.
………………………
He can start by practicing on you.
Sinan, a question regarding RRSP home buyer’s plan repayment. Are those repayments counted as RRSP contributions with the attendant income tax reduction & possible tax refund when they are repaid? So those taking funds from their RRSP’s not only get to use those funds tax free as long as they make the necessary repayment but also get the benefit of tax reduction a second time around?
“Many investors don’t realize Canadian mutual funds are amongst the most expensive in the world with management fees averaging over 2%. ”
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I cringe thinking of how much money we lost in mutual fees over many years before switching to Turner Investments. To be blunt, our advisor was pissed, sending us several emails enquiring “why?”.
TI looked after every aspect of the transfer. We didn’t have to deal with the former advisor at all. Thank you Sinan.
I miss Garth!
#125 Sail Away on 02.10.22 at 11:22 pm
DELETED
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Every so often, you get these moments of fresh air. Ahhhh! Refreshing!
Keep up the good work.
#19 CanadianOne on 02.11.22 at 12:53 pm
Sorry, yesterday was snarky Thursday for me.
The thing to keep in mind is that there is no such thing as a free lunch. Yields are a function of risk with positive correlation. Staking crypto, no matter what the optimizing algo does for you, is very high risk. You are investing in an unregulated market (just pause and think about that for a second. Actually, think about it for a few days. Unregulated means that there is very little recourse for getting rugged among other things) that central banks in some nations have banned and in most other nations there is great regulatory scepticism. There are crypto thefts happening regularly. etc. All this is to say that high yield here comes with large risks that the hype will not tell you because they need your money to stake the exchanges because at present staking levels, a run on crypto will crash the exchanges because there aren’t enough dollars to exchange out.
Sure, the risk/yield curve isn’t a perfectly smooth function which means that there could be kinks in the shape of that function to optimize against, but it probably wont be enough arbitrage to protect against the larger risk. Efficient markets do not allow distortions to exist for very long, especially now in the computer era when algos hunt for arb plays constantly. Of all things, an unregulated asset like crypto should be the most efficient of all markets. Right? So there should be many fewer arb opportunities.
That said, I agree that it is early for the crypto space and there’s a chance that you could be getting in on the ground floor of an elevator heading to Pluto. So, put some money there and watch what it does. But no regrets if it zeros and no FOMO if it starts to moon. If you are truly early, even a small investment will go convex and do well for you.
Total RRSP room is meaningless if you are not expecting to have significant lower tax in retirement. My parents made the mistake of contributing to RRSP while not making good income. They were penalized the first few years after retirement.
I made over 20k in RRSP contributions in 2021. Company bonus came in much higher than expected, so I have to shift a good portion of last year’s contribution to this year (in addition to another 25k planned RRSP contribution) to lower my marginal tax for 2022.
#118 IHCTD9 on 02.10.22 at 9:11 pm
^^ Are you the next Smoking man type? Ghosted/deleted while bozzing? Why not start your own weblog and we’ll hop over. Unmoderated & raw. Gartho would be glad to rid this blog of us lol
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Yes, he would be thrilled … as the vast majority of us blog dog’s would. How much would it cost to make this a reality!
Garth can broker the deal and we’ll put the cash up to make it happen!
#5 highlander – Thank you for your comment. When you ask the administrator of your pension to provide an estimate of the commuted value they will tell you the amount that must be transferred to a LIRA – Sinan
#143 Sail Away on 02.11.22 at 1:01 pm
#142 millmech on 02.11.22 at 11:45 am
It looks like the no risk/no reward portfolio of putting away 10% a year($3000) for 30 years at 7% gives them $326,000.
The take a shot and profit and make $900,000 put that to work and add $3000 to that every year gets one $6,850,000.
They who dare, win
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Yes! And when the game is won, the security portion is never again risked. Your life becomes totally and unequivocally free.
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But then a “Freedom Fighter” truck parks outside of your house and honks all night.
Freedom, my friend, is a fickle mistress.
@ #16 Greatest hockey goal – EVER! on 02.11.22 at 12:47 pm
The Ambassador Bridge blockade was a strategic blunder for the Convoy and whoever is funding them. Any fascist serious about power knows that you target the big money AFTER you come to power, not before. Until then, you have to keep the blatant anti-capitalism on the down low.
Small businesses catering to “elites” in a few neighbourhoods, homeless shelters and foodbanks are easy targets. Big Auto? Big mistake.
#14 G – Regarding your question about inflation and whether there would be an advantage to putting any money into gold or a gold producers ETF: I do recommend investing in gold or gold producers. While the price of gold can certainly increase in the near term over the long term it hasn’t performed well and I don’t believe it will be a good investment going forward. Gold producers are price takers and as a result the economics of their business are not very good. I believe there are much better places to invest your money – Sinan
Garth et al:
I have been looking for an engineering position for awhile. I had an interview today. About 5 minutes into the interview, the guy directly asked me what my vaccine status was. He explained that the place had everyone vaxxxd. I then told him I was not vaxxxd with the mRNA stuff but waiting for novavax . I don’t think I will get the call back. I was discriminated by health status directly in the interview. Let’s go Brandeau.
@#26 Patriot
PONZIUS FLATULOUS
+++
I admire your excellent Latin.
It raises the Steerage section from low brow humor to educated low brow humor…..
One thing never mentioned when it comes to fees is that really not everyone pays the 2% average.
If you work with a decent Financial Advisor ( which mose of us should for the bulk of the portfolio,let’s face it) you should be using F series mutual funds where the fees are way less and negotiable I might add.
Surely hope Turner Investments offers the F series to their customers.
We do not sell or place our clients in mutual funds. – Sinan
#36 Ustabe
…………………..
You keep omitting characters in your name.
Missing an “N” and and “L”
Unstable.
Please correct in the future
Thank you
Faron, here’s today’s lip curler.
Just got an email from Jeff Bezos threatening legal action if I use his name in the same joke punchline as Sail Away’s…
M47BC
Re: Money Left on the Table
What is your view/advice when the only investment options offered by the employer’s plan are 2-3% MER Mutual Funds? Do you still do it?
Check out 100 yo science:
https://www.snopes.com/fact-check/warm-welcome/
18 Russ
“Can anyone tell me if there a downside or benefit to this set-up?”
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We are in the same boat, though there is the remote
possibility that I may contribute to my RRSP in the future.
The way I understand it (and you should check with a
pro!) is that there is no withholding tax on the RRIF
minimum withdrawal. You still owe the tax at years end.
Now the temptation may be that you dump a large sum into the RRIF and get a larger tax deferred withdrawal BUT then you are locked into that minimum going forward, but you may, under certain conditions, be able to convert it back to an RRSP (again check with a pro!).
seems like a lot of work for tax you will still owe at years end.
We also have investments in non-reg and TFSA and
depending on gains, we may want to take them from
those accounts and NOT use the RRSP/RRIF in a
particular year. Dont forget to take your CPP/OAS into account and whether you get the age credit.
And of course you have to convert all RRSP to RRIF in year you turn 71. Then we are all stuck.
#27 Linda – Thank you for the question. Repayments to the Home Buyers Plan do not count as an RRSP contribution so you do not get the tax deduction. Funds withdrawn under the HBP are tax free so long as they are used to fund the purchase of your first home but if not repaid they will be added to your taxable income – Sinan
Anyone know if this is part of Tesla’s mission to better society?
https://www.bloomberg.com/news/articles/2022-02-10/tesla-sued-by-california-over-rampant-racism-at-factory?sref=iW3WrQuv
I guess if it makes you tons of money, it’s okay to look over little details like abject racism.
Great blog post today Sinan, I wonder if Garth is creeping his own blog while on vacation???
“If you think you may commute a pension at some point, I suggest not maximizing RRSP contribution and carrying room forward. When you receive the cash portion of the lump sum payment you’ll have the ability to transfer it to your RRSP and defer taxes”….
Can’t a person still maximize their RRSP, have that sweet tax free growth but save the deductions for if or when they commute their pension? Deductions can be carried forward year after year until you want to use them, especially in the year when you take the commuted value, your income will be extremely high. Seems like you would be losing out on all that growth compounding over the years compared to waiting and putting it all in at once…am I missing something?
Cheers
#8 Felix on 02.11.22 at 11:18 am
Anyone notice how happy these retirees look, with no dog in the picture…
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The dog took the photo.
#36 Ustabe on 02.11.22 at 2:31 pm
@ #16 Greatest hockey goal – EVER! on 02.11.22 at 12:47 pm
The Ambassador Bridge blockade was a strategic blunder for the Convoy and whoever is funding them. Any fascist serious about power knows that you target the big money AFTER you come to power, not before. Until then, you have to keep the blatant anti-capitalism on the down low.
Small businesses catering to “elites” in a few neighbourhoods, homeless shelters and foodbanks are easy targets. Big Auto? Big mistake.
——————-
Agree with you.
Obviously, their leadership has no exit plan.
Stuck in mud, like Hitler and Napoleon in Russia.
Big win for JT and Premier Ford.
Thank you for the post.
Since there is no free lunch and up to 50% of your RRSP is Government’s money anyways, meaning you are investing it for the Government you can increase portfolio equity allocation if you calculate your after tax risk.
Because if you say only 50% of RRSP is actually mine, put 100% of Government portion into equities :) let them take the risk.
Sinan, would you recommend portfolio risk be calculated on before or after tax basis?
For example: pre tax 70/30 may be the same as after tax 60/40 etc.
Thank you
Miketheengineer on 02.11.22 at 2:39 pm
Garth et al:
I have been looking for an engineering position for awhile. I had an interview today. About 5 minutes into the interview, the guy directly asked me what my vaccine status was. He explained that the place had everyone vaxxxd. I then told him I was not vaxxxd with the mRNA stuff but waiting for novavax . I don’t think I will get the call back. I was discriminated by health status directly in the interview. Let’s go Brandeau.
______________________
That’s not illegal. Employers are allowed to ask that all new employees are vaccinated in order to work at the site. Just get vaxxed!!
#42 Flop… on 02.11.22 at 3:15 pm
Faron, here’s today’s lip curler.
Just got an email from Jeff Bezos threatening legal action if I use his name in the same joke punchline as Sail Away’s…
M47BC
—
Thanks Flop, appreciated!
RE: #32 Inadequate on 02.11.22 at 2:12 pm
Total RRSP room is meaningless if you are not expecting to have significant lower tax in retirement.
=======================================
Wrong. Even if you are in the same tax bracket later in life, the RRSP can still be better than having your investments in a taxable account:
Scroll down and look at the table “RRSP vs TFSA Comparison”
https://boomerandecho.com/sensible-rrsp-vs-tfsa-comparison/
Of course there are a few caveats to that example, but my main point is the fact that money can grow tax free in a RRSP. So don’t overlook the RRSP after your TFSA is full. It’s still a good deal.
But dividends are an example where, in some provinces and tax brackets, it is better to have them in a taxable account. ie: In some situations, the tax rate is negative.
#44 Sail Away on 02.11.22 at 3:22 pm
Check out 100 yo science:
https://www.snopes.com/fact-check/warm-welcome/
—
LOL, Snopes science is the bestest science.
Data shows a steady warming coming out of the turn of the 20th century in the Arctic and globally. Natural forcing was still dominant then although GHG forcing was certainly present as were temperature mitigating aerosols. In the Arctic this period was punctuated by a very cold mid to late teens owing to internal, natural variability as there were no major volcanic eruptions to speak of. Off of that background, 1922 was substantially warmer than every year of the 1900s prior, so such news at the time would be expected. More so as westerners were spending more and more time in the Arctic noticing stuff.
Still, 1922 was on average about 2 degrees cooler in the Arctic than it has been in recent years.
So, what’s your point? I’ve chosen to be the brave one and provide my analysis first. Your turn.
#21 Ponzius Pilatus on 02.11.22 at 12:59 pm
We need this security guard to remove the law breaking protesters from Ottawa.
https://www.dailywire.com/news/security-guard-at-school-board-meeting-physically-removes-maskless-man-drags-him-out-of-meeting
===
Condoning and glorifying violence, ponzie? That’s why you need to get your Certificate ASAP.
#20 SunShowers on 02.11.22 at 12:56 pm
“Canadians have over $1 trillion in unused RRSP contribution room.”
Then it’s settled.
Give Canadians $1 trillion in cash to fill their RRSPs.
===
Sure, the federal government should fund it. Our current deficit is way too small ..
25 Dave on 02.11.22 at 1:43 pm
Rates are going up. That much is a given, and everyone knows it. The only question is how much. My personal view is we will get to about 2.5% and call it a day. The factors present in today’s inflation are far different from in times past. We can thank covid for that. And demographics.
With respect to real estate, interest rates are an important factor, but not the only one. Worldwide, and in Canada, homes are expensive for a ton of reasons beyond just interest rates. Highly speculative areas and more speculative instruments (like condos) might see some slight declines, but homes with a garage and backyard will see continued price increases, just at a slower rate than in 2020/2021.
IDK
Garth, Garth, Garth !
47 Faron:
This law suit sounds suspicious. The events sited in the suit occurred between 2015 to 2019. On each occasion, the California DFEH (Department of Fair Employment and Housing) sent representatives in and talked to the employee and Tesla. No recommendations were left for Tesla to follow up with. To now issue a high publicity law suit to me sounds more politically oriented than wanting to meaningfully correct a workplace wrong. Tesla is no stranger to political harassment. President Biden would not even say ‘Tesla” for fear it would anger the UAW and it’s support. Another example of political harassment is the NHTSA ( National Highway Traffic Safety Association) calling an issue that can be resolved with and over the air update as a “Recall”. All of this is a measure of the level of corruption in politics today. It is sad people are swayed by the clickbait headlines.
https://www.tesla.com/blog/dfehs-misguided-lawsuit
#50 Ponzius, You analysis that the Convoy was stuck in the mud in Russia like the big H & Bony had been did not “resonate” with me. I see Nato & the west stuck in the mud on the Eastern front. Putin inherited the world populist leadership from Golden Boy, so cruelly Trumped. Putin is going to halt Liberal Hegemony by wrecking the Ukraine. The Canadian Populist are going to stop Liberal social engineering by wrecking Canada. So the cops kick them out of the cities. They’ve reached critical mass in the small towns. You of all people should know we’re all stuck in the mud here. And when it comes to attrition in the snow & the mud, small town Canadian populists & Russian peasants got a pretty good record.
7pm coming soon. The freedumbers have what’s coming to them. I cheer for the law enforcement officials who will shortly be bringing the freedumber occupations to an end.
I suggest the freedumbers start making their exit soon.
Run while you can, freedumbers…with your tails between your legs.
#60 R on 02.11.22 at 5:49 pm
Good job. You toed the line perfectly there.
Yes it is garbage that Tesla runs the only non-union auto plant in the US, but that’s not the reason Biden ignored him for a while. It’s more likely that the president wants to avoid associating with those under multiple lines of federal agency investigation until those issues are resolved. But, the union thing is a cute diversion.
The suit is not at all suspicious. An earlier suit was ruled in favour of the plaintiff. If the suit is misguided, what is Tesla afraid of? Why would they want to “pause the case and take other steps to ensure that facts and evidence will be heard” when a court of law, ostensibly, is a fair grounds for facts to be heard under oath no less.
I find it sad and unsurprising that you were swayed by Tesla’s internal PR machine. Sure, this could all be a conspiracy. Or, Tesla might actually be a crap company selling fraudulent software and promising things it will never deliver to make number go up. Time will tell wont it?
Sailo, you buying more TSLA at this price? Same price as your previous price?
#15 Sail Away on 02.11.22 at 12:47 pm
My firm does a decent RRSP match.
One thing that has happened a few times is that an employee elects to not maximize the match, so we’ll have a sitdown to explain how completely illogical such an action is; and further, in an engineering company, it is expected that professionals intending to progress an engineering career will make logical decisions.
Rationality.
——
You sound awfully nosey. Maybe you should just mind your own business?
If you are concerned that your employees aren’t making rational decisions, what makes you think you understand their full financial picture? Maybe you should’ve just hired someone more logical, since a little “sit down” isn’t likely to make someone become suddenly more rational as an employee.
Generally people don’t participate in such programs if they aren’t making enough money to make ends meet. So.. maybe you should just be paying them more.
Sincerely,
An engineering manager
We always maxed out our RRSP which is a very good way to secure the charmed life when you retire .However
when you retire be prepared to ask your financial
planner to do with holding tax at 71 because all your
forced with drawls are taxed at your current tax rate which is fine. You get the tax break for many years but eventually you pay the TAX.
@#60 R
Total agreement.
Elon has made no secret as to why he’s moving to low tax, low regulation Texas from High tax , endless regulation Cali.
This egregious lawsuit is just one more nail in the Cali job enticement coffin.
Would the last person working in the private sector to leave California please turn out the lights.
I am generally left-wing, and very much liked Tara Henley’s articles and viewpoint. What should be of concerns to Canadians young and old are: 1) dealing with high inflation rate. 2) young families being completely shut out from buying their own home to raise their kids in now not just the major cities but many smaller communities (20% spike per year for each of the last few years). Unless one has family $$$, or a house to inherit, or a trust fund like our idiot prime minister T2, they are out of luck. 3) vaccine mandates and control more and more people, even as the omicron wave dies down. Don’t take the vaccine, you are fired as a physio in BC (like my daughter will be on April 1st). Molecular tests of dubious value to get back into Canada for a trip to Mexico. Why at this stage? Where is the CBC reporting on issues that relate to the above? There was a post this past week on CBC about some student at UNBC who claimed they were being discriminated against because there was no chair in the lecture hall big enough to fit her. In my view, the problem is easily solved: just bring in a chair from the hallway for her to help her out. Why is the CBC thinking that this story is newsworthy to put on the BC CBC website? Are they insane? There are MUCH more pressing things going on that need REAL investigative journalism (see the point above). Tara Henley is correct in her view that the CBC has lost its way. I am really tuning out of it at this stage.
Apocalypse, Bro, whazzup!?
Is Garth with you now in the bunker?
@#16 Greatest hockey goal – EVER! on 02.11.22 at 12:47 pm
–
particularly lame analogy.
#54 kommykim on 02.11.22 at 5:05 pm
RE: #32 Inadequate on 02.11.22 at 2:12 pm
Total RRSP room is meaningless if you are not expecting to have significant lower tax in retirement.
=======================================
Wrong. Even if you are in the same tax bracket later in life, the RRSP can still be better than having your investments in a taxable account:
////////////////////////////////////////////////////////////
Uhm no, disagree, TFSA always wins but is relatively new and small, RSP can be good but if you’re not totally aware of how to melt it down it’s hardly the best option.
TFSA and non-reg I completely control how I am withdrawing and being potently taxed. RSP is deferred income like taxes and exceptions that it really depends. 30 years ago TFSA didn’t exist so the RSP was the only game in town for working people.
I really don’t need to complication of melting down an RSP more than I have to.
Personally my non-reg and TFSA are always topped, RSP is a legacy account and I contribute/defer around 10k every year.
63 Faron:
I understand you think you sound financially sophisticated by slamming Tesla , just as many hedge funds also gained $millions shorting Tesla over the last few years ( at the expense of $billions). You are not alone. The big disservice you are propagating however, is you truly are ignoring the biggest financial investment opportunity of a lifetime . Think Apple when Steve Jobs introduced the iPhone in 2007, then X5. In 5 years, Tesla will be the largest company by market cap in the S&P500. If it is not, I would gladly buy you a coffee at a Tim Hortons of you choosing ( GTA) Feb 11 , 2027 ?
Every time the BoC opens their mouth, a lie comes out of it.
https://ca.finance.yahoo.com/news/macklem-says-canadian-hiking-path-170000733.html
Note:
The comments are consistent with testimony Macklem gave to lawmakers in the Senate last week when he said the rate path will hinge in part on business investment.
—
At time when rates should be in double digits to fight official inflation of 7-8 % and real of 15 % +with horrific increase in energy and food, with prices that will never, ever come down, they speak about ‘conditional’ increase from 0.25 (?!?) to some still near close to zero number of 1-2 %!!!
Truly pathetic failure of authority to do their main job – price stability.
We are facing absolutely horrific inflation times. Prices will increase in total in hundreds of percent in this part of the cycle with capped salaries and income and that will be on world wide scale, but particularly bad in places with high overall debt.
Very bad prospects for the most vulnerable – people on fixed income and depending on ‘inflation indexed’ benefits.
All sorts of lies and excuses will be used to justify this form of financial terrorisms and genocide.
The supply chain disruptions and green policies, combined with idiotic escalations of tensions with extremely powerful adversaries in order to hide the true state of the economy and finances being the most notable.
The seeds for what we will rip were sown in 2010-2012 with the ‘competent’ central bankers, the likes of Mark Carney and Ben Bernanke who were made starts by the press making idiotic irreversible long term decisions
#54 kommykim on 02.11.22 at 5:05 pm
RE: #32 Inadequate on 02.11.22 at 2:12 pm
Total RRSP room is meaningless if you are not expecting to have significant lower tax in retirement.
=======================================
Wrong. Even if you are in the same tax bracket later in life, the RRSP can still be better than having your investments in a taxable account:
Scroll down and look at the table “RRSP vs TFSA Comparison”
https://boomerandecho.com/sensible-rrsp-vs-tfsa-comparison/
Of course there are a few caveats to that example, but my main point is the fact that money can grow tax free in a RRSP. So don’t overlook the RRSP after your TFSA is full. It’s still a good deal.
But dividends are an example where, in some provinces and tax brackets, it is better to have them in a taxable account. ie: In some situations, the tax rate is negative.
———————-
Last year I had to re-file due to a late dividend slip . Thought I would owe another $1k in taxes, but instead got approx. another $500 back in a refund. I was sure the CRA made a mistake. Wrong, once again.
Hi Garth, assigning your teamates to the blog was a rich idea, I miss your sense of humour, but it’s a little less repetitive, thanks for this
@#50 Ponzius Pilatus on 02.11.22 at 4:18 pm
#36 Ustabe on 02.11.22 at 2:31 pm
@ #16 Greatest hockey goal – EVER! on 02.11.22 at 12:47 pm
The Ambassador Bridge blockade was a strategic blunder for the Convoy and whoever is funding them. Any fascist serious about power knows that you target the big money AFTER you come to power, not before. Until then, you have to keep the blatant anti-capitalism on the down low.
Small businesses catering to “elites” in a few neighbourhoods, homeless shelters and foodbanks are easy targets. Big Auto? Big mistake.
——————-
Agree with you.
Obviously, their leadership has no exit plan.
Stuck in mud, like Hitler and Napoleon in Russia.
Big win for JT and Premier Ford.
____________
Theatre of the absurd on full display
with these ‘freedom’ truckers and their boorish
band of so called leaders.
Monty Python could do well buying the rights to their story. Or maybe Kids in the Hall.
#43 bguy1 – If your employer plan only offers investment options with MERs of 2-3% I would recommend you still contribute enough to get the employer match but also continuosly question your employer and HR department about the lack of investment options while pointing out the absurdly high MERs – Sinan
The worse part and fears on my part comes with the extremely bad communications signs from central bankers.
I am frankly extremely frightened that they have completely lost it and even can’t lie decently any more.
Losing the last remaining credibility is the worse as then there is nothing left in order to even dent the horrible inflation roaring that is just starting and will only accelerate.
My bet is on even higher inflation this year. This only initial boom in commodity prices of 30-70 % even with the statistical lies will translate into a very bad experience by consumers, and this is just starting.
Think about it: They fight the worse official inflation of 40 years, in reality double what they are reporting (15 5 % +, maybe 20) with highly accommodative monetary policies and rates ‘potentially’ going to 1-2 % and that might never happen due to various reasons and excuses.
Absolutely mind blowing. These people are nuts if not outright criminals.
Rates should have been 4-6 % 10 years ago, 10 % + in a situation like the one we are in currently.
And they even joke with it and advise on not asking for salary increases as that will further accelerate the inflation blaming the victims of their disasters policies for their own mistakes!
#48 Paddy – If you maximize your RRSP contribution you can defer claiming the deduction but since your RRSP contribution room would be used up you cannot utilize any further room when/if you commute a pension – Sinan
Central banks and politicians around the world are actually hoping for a war… will give them cover to keep rates low and keep the housing market red hot….
Is this TRUE or FALSE?
#55 Faron on 02.11.22 at 5:14 pm
#44 Sail Away on 02.11.22 at 3:22 pm
Check out 100 yo science:
https://www.snopes.com/fact-check/warm-welcome/
———
So, what’s your point? I’ve chosen to be the brave one and provide my analysis first. Your turn.
———
I found it interesting, including the link discussing research and findings since then. Nothing further.
#51 stealth – Thank you for the question. While a significant portion of RRSPs is government money I think it’s best to manage all the funds in an RRSP as entirely yours. With RRSPs the government is essentially giving you an interest free and no recourse loan so even if the RRSP goes to $0 you wouldn’t owe the government anything but that doesn’t mean you should view risk differently because at the end of the day if an RRSP loses any value you lose value so risk shouldn’t be thought of differently – Sinan
From the Crimes I’ve Committed Against This Blog file.
I think I’ve got around 80k in unused RRSP room.
I know, I know, but I’ll be out in 5 for good behaviour.
Trying to live with a foot in each hemisphere lead to procrastination and then simplification.
Australian Superannuation instead of RRSP, TFSA steaming down the tracks after leaving the station 5 years too late.
Mrs Flop was pounding the RRSP long before we met, I encouraged her to start a TFSA, which she did so after a couple of years of nagging, now she’s a TFSA first and RRSP second kind of girl.
The TFSA 4 years later has almost caught the RRSP in keep in your pocket jingle-jangle and is way ahead in don’t let the government take it all Dolce Math…
M47BC
Great post!
I took the commuted value of my 36 year pension at age 62 in 2016. The company health plan had already been split off, so I was able to retain it in retirement. There was a retirement bonus, so between it and savings I did not have to use any money from a blue chip stock dividend RRSP and LIRA portfolio for two years. Long story short my all dividend portfolio now pays 50% more and capital growth has also increased 50% in 6 years.
The downside to this is during market collapses you have to not panic and sell. Sounds easy but it is not.
When you convert your LIRA to a LIF one can transfer 50% to your RRIF.(Do it as it gives you more flexibility)
All my RRSP contributions were at least 43% and so far we have paid no more than 20 % in tax as we tax split everything including my CPP(you have to fill out forms). Hope this helps someone to make a more fact based decision.
.
#63 Faron on 02.11.22 at 6:11 pm
Sailo, you buying more TSLA at this price? Same price as your previous price?
——-
Nope. I made a decision and took my position and now the cards will fall according to fate.
https://ca.finance.yahoo.com/video/nuttiest-homes-recently-sold-canada-162302857.html
Over 1.1 millions for a row townhouse … in Oshawa…
1.5 mil + for a house in Stouffville.
increases of 30-50-70 % in a single year, of course due to ‘supply disruptions’ and not due to extremely bad monetary policies.
Fast Disintegration/Destruction of currency in real time.
Posting before they write a law that criminalizes information about inflation calling it ‘panic spreading’.
@61 Fishman;
“They’ve reached critical mass in the small towns.”
I’m going to call B.S. on that.
Less than 6 months ago, we had an election, and the Laurentian Elite Drama Teacher made it back in for another term.
Where were these people you speak of then? MIA. An orderly change could have happened, beaten the Borg fair and square. Brought “Justice” not “Justin”.
Now, they want to practice sedition, that’ll get lives ruined, people shot, and chaos for all. There will be no change of power in Ottawa. How can there be? The pawns in this chess game will eventually tire of the charade, or (hopefully) figure out that they are being used yet again, and take their cars and trucks and families back home and enjoy the natural end of this pandemic like the rest of us.
Nope. The people are not there. The Convoy leaders have to do what they are doing because they failed Sept 20 2021, and they failed January 6 2021, and they will fail in February 2022.
I voted to have the incumbent not return, but obviously, I was in the minority of voters. But at least I went out and did my democratic duty and have accepted the result.
#38 Miketheengineer on 02.11.22 at 2:39 pm
Garth et al:
I have been looking for an engineering position for awhile. I had an interview today. About 5 minutes into the interview, the guy directly asked me what my vaccine status was. He explained that the place had everyone vaxxxd. I then told him I was not vaxxxd with the mRNA stuff but waiting for novavax . I don’t think I will get the call back. I was discriminated by health status directly in the interview. Let’s go Brandeau.
———
Good for them if they don’t call you back aside from the courtesy call that you didn’t get it.
Were you looking for sympathy?
You came to the wrong place.
And I think your search will continue to be fruitless. Keep being stubborn. How’s that working for you?
Take the easy route.
Buy a house with your max Home Buyer Plan RRSP.
Don’t pay back the HBP and claim it yearly as your only income.
Live off the $100,000 in equity that your house generates every year through HELOC – non taxable baby.
If the house stops going up in value, default – you never had much skin in game anyways – re calibrate and consider working a job for income.
This gives you a lot of free time for day trading and getting out with the dog.
Forget that 9-5 grind bs.
Boomers thought they were smart being able to retire at 55.
Gen X is showing how to live the good life while being retired once buying a house, in their 30s which was about 12 years ago, when able to buy houses in the bottom of the financial crisis, which by today’s standard was VERY cheap and doable. Sorry future generations. This is fact and you will never be able to pull these moves unless you get the inheritance.
The show must go on.
#52 vanreal on 02.11.22 at 4:49 pm
That’s not illegal. Employers are allowed to ask that all new employees are vaccinated in order to work at the site. Just get vaxxed!!
///////////////////////////////////////////////////////////
No, employers can asked any manner of illegal questions or demands, just it is up to the entrant to comply whether legal or not.
The big difference is who is afraid of being challenged in a court of law, or simply being tolerated.
Looking forward to Garth’s return. Today’s blog was a real off the shelf filler post.
#28 Barb on 02.11.22 at 1:50 pm
“Many investors don’t realize Canadian mutual funds are amongst the most expensive in the world with management fees averaging over 2%. ”
—————————-
I cringe thinking of how much money we lost in mutual fees over many years before switching to Turner Investments. To be blunt, our advisor was pissed, sending us several emails enquiring “why?”.
TI looked after every aspect of the transfer. We didn’t have to deal with the former advisor at all. Thank you Sinan.
—— –
100%, I am a fellow cringer, TI is doing Ms. IH and I a great job, without the 2.4% MER.
Regarding an uncensored knuckle dragger blog à la Smoking Man. Maybe it’s fate, but SM’s date of death is actually my birthdate, but despite my best effort at inebriated postings, I can not hold a candle to the immortal Jim S. You’ll have to follow my oft-toasted comments right here on the GF :). I miss JS/SM too.
https://www.greaterfool.ca/2020/09/16/into-the-smoke/
#50 Ponzius Flatulous
Agree with you.
Obviously, their leadership has no exit plan.
Stuck in mud, like Hitler and Napoleon in Russia.
Big win for JT and Premier Ford.
……………………………
Please dress up in your “I Love Trudeau” t-shirt and hit the streets to save Canada.
Hurry please, the country needs you!
#62 Stone
Add a “D” to your user name so we can identify with you better.
Thank you.
#71 R on 02.11.22 at 7:30 pm
Yep, those are the rest of the talking points. Good job. You adhere to the script like a good, inside-the-box Canadian. Glad those AZ rays aren’t altering your thinking.
If you can’t understand why Apple Computer and Tesla are not the same; why Elon Musk and Steve Jobs (aside from being driven a-holes) couldn’t be more different, you can not be helped.
Lets do this bet short seller style: wire me the money now via interac. That $2 coffee will cost $3 by then at 7.5% inflation compounded daily. If you are right, I’ll wire you the money back. You can get my e-mail address from Sail Away; it’s in his dossier.
Looking forward to that coffee!
#80 Sail Away on 02.11.22 at 7:53 pm
#55 Faron on 02.11.22 at 5:14 pm
Oh, okay. That’s good because Snopes wrote about it in the context how such an article usually appears in messaging associated with climate change denialism and it seemed strange to highlight historical climate data using that kind of link instead of a link from an actual agency who actually tracks such records.
#89 mike from mtl on 02.11.22 at 8:37 pm
#52 vanreal on 02.11.22 at 4:49 pm
That’s not illegal. Employers are allowed to ask that all new employees are vaccinated in order to work at the site. Just get vaxxed!!
///////////////////////////////////////////////////////////
No, employers can asked any manner of illegal questions or demands, just it is up to the entrant to comply whether legal or not.
The big difference is who is afraid of being challenged in a court of law, or simply being tolerated.
————————————————————–
You can’t be forced to disclose your vaccination status to your employer unless there is a government mandate in your field of work.
That said, you have to accept the consequences of refusing to disclose that information, which may mean loss of job opportunity or even termination:
https://www.canadianlawyermag.com/practice-areas/labour-and-employment/can-employers-require-new-hires-to-show-proof-of-vaccination/356212
Another reason to invest in an RRSP vs. non reg is that the RRSP has creditor protection.
When the rich rob the poor it’s called business. When the poor fight back its called violence – Mark Twain.
Good advice. Longer’s might want to wait this one out for a bit though:
https://www.deviantart.com/brioux/art/Soviet-Russia-Bear-532049876
Why didn’t smoking man have travel insurance? Real good planning. That’s what thinking for yourself instead of the future does. One word SELFISH
@#82 Flop.
“Australian Superannuation instead of RRSP”
+++
A friend of mine ( now deceased) and his wife both worked in the British military ( Aircraft tech and nurse) for about 15 years.
Then they transferred to excellent jobs in Oz ( aircraft tech and nurse) for another 20 years.
They then moved back to Canada to look after her sick dad and worked in senior position for another 15 years.
They both retired with unbelievable pensions. Brit military, Oz Superannuation, private sector pensions in Canada, CPP and OAS.
But the OZ pension was, by far, the best.
How many years did you pay into it and , as a dual citizen, are you still obligated to vote in Auzzie federal elections?
@#97 Farm Boy
“When the rich rob the poor it’s called business. When the poor fight back its called violence – Mark Twain.”
++++
Good old Samuel Clemens.
Absolutely brilliant.
Sadly,
He was terrible with his money and investments.
After losing almost everything to investments that went wrong or loaning money to family and friends…..
A successful businessman took him under his wing and dealt with his bankruptcy, creditors, handled his money, investments, etc.
When Twain died about 20 years later he was worth about $475,000 ( $ approx $13,000,000 in todays money)
But his quotes were timeless.
“A Patriot: the person who can holler the loudest without knowing what he is hollering about.”
That just about sums up the idiots blockading in Ottawa and Windsor.
@#90 Mike from a Calgary suburb
“Looking forward to Garth’s return. Today’s blog was a real off the shelf filler post.”
+++
Please send us in some of your informative posts so we can critique.
Than do it again the next day, and the next and the next and the next for years.
I personally did not know you could tax defer RRSP contributions to another tax year.
I learned something new about RRSP’s.
I also learned that you are an ingrate that doesn’t appreciate free investment advice (with no popup ads).
Congrats Sinan – u made it to 100 comments!!!
About to head out to the Hamilton rally – hope to see some of my fellow municipal employees getting terminated May 31, 2022 people out there!
We are here for all of you – even the unconscious.
not going to good for T2…
‘Approval of the federal government has dropped from 44% to 38%. Disapproval up from 40% to 45%.’
‘Positive impressions of Justin Trudeau at 36%, negative at 46% for a net score of – 10. His negatives are the highest we have registered’
Hey R, what about the one where one of Elon Musk’s start-ups managed to catch the eye of a medical ethics group for killing more than 2/3 of the monkeys after keeping them under grievously cruel conditions. Is that better or worse than the racism?
(Warning that the descriptions of animal cruelty in this case are really really awful.)
https://www.pcrm.org/news/news-releases/physicians-group-files-state-lawsuit-and-federal-complaint-against-uc-davis
#99 unbalanced on 02.12.22 at 6:50 am
Why didn’t smoking man have travel insurance? Real good planning. That’s what thinking for yourself instead of the future does. One word SELFISH
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Does travel insurance cure brain cancer?
Good grief…
A 100% allocation of VTI and VXUS is the best way to make long-term use of your RRSP.
#93 Canadian Patriot on 02.11.22 at 11:06 pm
#62 Stone
Add a “D” to your user name so we can identify with you better.
Thank you.
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The time of freedumber annoyance is coming to an end. Run freedumbers! Run! While you can.
Just watched on twitter how fast the freedumbers in Windsor are moving as law enforcement move in. They seem…afraid.
Cowards and bullies always act in the same manner. Run! With your little tails between your legs.
We are done with you. Bye!
#64 XEQT and chill on 02.11.22 at 6:21 pm
#15 Sail Away on 02.11.22 at 12:47 pm
My firm does a decent RRSP match.
One thing that has happened a few times is that an employee elects to not maximize the match, so we’ll have a sitdown to explain how completely illogical such an action is; and further, in an engineering company, it is expected that professionals intending to progress an engineering career will make logical decisions.
Rationality.
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You sound awfully nosey. Maybe you should just mind your own business?
If you are concerned that your employees aren’t making rational decisions, what makes you think you understand their full financial picture? Maybe you should’ve just hired someone more logical, since a little “sit down” isn’t likely to make someone become suddenly more rational as an employee.
Generally people don’t participate in such programs if they aren’t making enough money to make ends meet. So.. maybe you should just be paying them more.
Sincerely,
An engineering manager
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Oh, it’s a great teaching opportunity. Surprisingly, some people come straight from graduating with almost no knowledge of finance.
Here’s the scenario presented:
$100k salary
5% RRSP match
Option 1: Work one year, earn $100k, all in-pocket after tax
Option 2: Work one year, earn $105k with $10k of it in RRSP. Remove cash from RRSP anytime.
And logically, in response to paying them more: that is literally the exact thing I’m attempting. Logic.
Explaining benefits to staff who may not understand fully is my business.
By taking out insurance it protects your loved ones. Period !
#110 Sail Away on 02.12.22 at 10:50 am
#64 XEQT and chill on 02.11.22 at 6:21 pm
#15 Sail Away on 02.11.22 at 12:47 pm
My firm does a decent RRSP match.
And logically, in response to paying them more: that is literally the exact thing I’m attempting. Logic.
Explaining benefits to staff who may not understand fully is my business.
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In my early engineering days I was staff with Lavalin (pre SNC-Lavalin). They offered generous RRSP matching plans. It was surprising how many didn’t understand enough to take full advantage. I think it’s great SA is helping employees with this.
My wife and I make around the same, $48,000 for me, $49,000 for her both full time modest incomes. We just bought our first home 6 years ago, $100,000 down and $275,000 mortgage left on the balance now after 6 years as we aggressively paid it off $180,000 in 6 years, 70% principal and 30% interest, property taxes, utilities, car expenses and with 2 kids and life in general living expenses we are doing fine.The RRSP we maxout every year and max out our TFSA as well for both of us. The $4,800 a year RRSP tax refund helps us alot to do this. We will have our mortgage paid in 10 years max and we currently have $98,000 in our RRSP, $85,000 in our TFSA, $11,000 in a 1.25% savings account. Married now for 6 years now.We are simple people, we just stick them in GICs, 5 years , 2.75% lowest rate to 3.6% highest rate we have and just let me keep compound interest. A bunch are 3.15% to 3.35% mostly. Now, 6 to 10 year GICs are CDIC insured, FSRAO insured so we can fix them as interest rates rise. Last year, our total break down of money flowing out was $20,756 total income taxes, CPP, EI etc., total $24,000 mortgage payments, all other living expenses $18,500. So last year, we did save close to $34,000 in our RRSP, TFSA, some in savings account.We do have a small $85,000 life insurance policy which we will be increasing next month as premiums are reasonable, only an extra $40 a month to double it to $170,000.
For the RRSP match plans do they often allow you to be able to withdraw the funds at any time? Or do you have to wait till retirement? Just curious. I have a friend who if she gets full time she will have the RRSP match and she is one of those that just does not understand because she feels she can’t afford to pay into it. I have tried unsuccessfully to explain it to her. In the end she told me that only the full timers get that benefit and she is currently part time.
Late to the party but glad I came. Thanks for the very informative blog post, Sinad!