A survey conducted by Sun Life Financial found that one in five Canadians who have access to a group RRSP in which the employer provides some sort of a match, do not take full advantage of the benefit. A bit of a head-scratcher from the survey: when asked why, 6% said they preferred to invest [...]
Mike from Four Pillars mentioned in a comment that the TFSA offers us a new horse to beat to death because we can now endlessly argue over whether a RRSP is better than a TFSA or does it make more sense to pay down the mortgage instead. In that spirit, let’s first consider the easier [...]
While a RRSP contribution probably makes sense for most people, there are some situations where other alternatives make more sense: Carrying consumer or credit card debt: Credit card debt is typically very expensive with double-digit interest rates. Even an unsecured loan from a financial institution will typically charge interest in the high single digits for [...]
As I’m fighting a cold and fever, I thought I’d get away with a short post on RRSP statistics today: Deadline for a contribution for the 2007 year: February 29, 2008 Maximum contribution amount for 2007: $19,000 Percentage of tax filers eligible to contribute to a RRSP*: 88% Percentage of eligible tax payers making a [...]
I participate in the Employee Stock Purchase Plan (ESPP) offered by my employer. The plan allows me to contribute a percentage of my salary and buy company stock at a discount twice a year. I always sell the shares purchased under the ESPP plan immediately and use the proceeds to contribute to our RRSPs. Since [...]
Money management firms are bombarding us with ads touting their latest best performing mutual fund that returned 30% last year and 20% over the past three and if you are tempted to buy based on the performance, consider the following statistic cited in The Smartest Investment Book You’ll Ever Read: One telling study involving mutual [...]
It is best to hold a diversified portfolio of stocks, bonds and cash within the RRSP and stay away from investments that are risky or very expensive. Here are some investments you may want to avoid: Venture Capital Funds: Even with the tax kickbacks, Labour-Sponsored Investment Funds are poor investments. The long list of negatives [...]
Let’s say that you have decided that making a RRSP contribution makes sense for you. You are ready to contribute but you are not sure how you should invest your money. What do you do? It is very important that you don’t buy some mutual fund just because you want to beat the deadline. It [...]
Rob Smith, author of Dollars From Change and Dave at Investing Intelligently had a couple of comments on yesterday’s post that you should consider when deciding if a RRSP contribution is right for you: Rob pointed out that RRSPs are important because you are “maximizing the tax rate of deductible contributions and minimizing the tax [...]
As the deadline for contributions to your RRSP approaches (March 1, 2007 is the deadline for 2006 contributions), you are going to be bombarded with full-page newspaper ads, commercials in television and radio and even phone calls at home (I’ve received three calls already). Instead of being hustled into doing something, take a deep breath [...]
