Comments on: Overwithholding http://www.canadiancapitalist.com/overwithholding/ Helping you invest and prosper Sat, 11 Feb 2012 12:40:17 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: This & That: Food Inflation, Interest rates and more… | MoneySense http://www.canadiancapitalist.com/overwithholding/#comment-437363 This & That: Food Inflation, Interest rates and more… | MoneySense Fri, 04 Mar 2011 15:44:20 +0000 http://www.canadiancapitalist.com/?p=383#comment-437363 [...] Did you procrastinate on your RRSP contributions until the last minute? Jon Chevreau says that setting up regular contributions will help eliminate the last-minute scramble. As an added bonus, send in your T1213 form and get your tax refund upfront. [...] [...] Did you procrastinate on your RRSP contributions until the last minute? Jon Chevreau says that setting up regular contributions will help eliminate the last-minute scramble. As an added bonus, send in your T1213 form and get your tax refund upfront. [...]

]]> By: This & That: Food Inflation, Interest rates and more… | Canadian Capitalist http://www.canadiancapitalist.com/overwithholding/#comment-436843 This & That: Food Inflation, Interest rates and more… | Canadian Capitalist Fri, 04 Mar 2011 03:50:10 +0000 http://www.canadiancapitalist.com/?p=383#comment-436843 [...] Did you procrastinate on your RRSP contributions until the last minute? Jon Chevreau says that setting up regular contributions will help eliminate the last-minute scramble. As an added bonus, send in your T1213 form and get your tax refund upfront. [...] [...] Did you procrastinate on your RRSP contributions until the last minute? Jon Chevreau says that setting up regular contributions will help eliminate the last-minute scramble. As an added bonus, send in your T1213 form and get your tax refund upfront. [...]

]]> By: Canadian Capitalist http://www.canadiancapitalist.com/overwithholding/#comment-1133 Canadian Capitalist Tue, 28 Mar 2006 02:57:15 +0000 http://www.canadiancapitalist.com/?p=383#comment-1133 Nina, Dave: Yes, I realize that for some people a refund is like a forced savings plan and a few hundred dollars in lost interest is well worth it. Personally, I would favour not getting a refund and getting my money to work immediately. Whatever works for us, right? Nina, Dave: Yes, I realize that for some people a refund is like a forced savings plan and a few hundred dollars in lost interest is well worth it. Personally, I would favour not getting a refund and getting my money to work immediately. Whatever works for us, right?

]]> By: Investing Intelligently http://www.canadiancapitalist.com/overwithholding/#comment-1132 Investing Intelligently Mon, 27 Mar 2006 22:58:19 +0000 http://www.canadiancapitalist.com/?p=383#comment-1132 Nina, I was thinking the same thing. We did this for my wife last year. I honestly can't remember what we did with the extra money that was no longer in the government's hands. We didn't have our finances in order last year mind you, but I'm pretty sure some or most of the extra cash went to expenses. The refund, when it comes in April 2006 on the other hand, will go straight to our line of credit. Forced savings is a wonderful thing. Nina, I was thinking the same thing. We did this for my wife last year. I honestly can’t remember what we did with the extra money that was no longer in the government’s hands. We didn’t have our finances in order last year mind you, but I’m pretty sure some or most of the extra cash went to expenses. The refund, when it comes in April 2006 on the other hand, will go straight to our line of credit. Forced savings is a wonderful thing.

]]> By: Nina Smith http://www.canadiancapitalist.com/overwithholding/#comment-1130 Nina Smith Mon, 27 Mar 2006 22:06:57 +0000 http://www.canadiancapitalist.com/?p=383#comment-1130 I disagree with the experts. I like getting a refund. Here is the reason why: most people lack the discipline to save. Of course, I save using an automatic deposit plan. But I consider my tax refund a windfall and for some reason when it comes in a lump sum, it seems so much more satisfying and usable. What’s the trade-off? A hundred bucks in lost interest. Big deal. The government only gets it for a year and then it’s mine and it’s substantial and it gets invested at this time. http://sittingprettyfinancially.blogspot.com/2006/02/over-withholding.html I disagree with the experts. I like getting a refund. Here is the reason why: most people lack the discipline to save. Of course, I save using an automatic deposit plan. But I consider my tax refund a windfall and for some reason when it comes in a lump sum, it seems so much more satisfying and usable. What’s the trade-off? A hundred bucks in lost interest. Big deal.

The government only gets it for a year and then it’s mine and it’s substantial and it gets invested at this time.

http://sittingprettyfinancially.blogspot.com/2006/02/over-withholding.html

]]> By: Anonymous http://www.canadiancapitalist.com/overwithholding/#comment-1129 Anonymous Mon, 27 Mar 2006 16:42:34 +0000 http://www.canadiancapitalist.com/?p=383#comment-1129 Perhaps a more relevant comparison would be appropriate. You are, in effect, loaning money to the government. The question you should ask is how much they would pay for that loan normally. Here's one nice reference for US T-bill rates (http://www.nscb.gov.ph/stats/tbills.asp). It covers the rates month-by-month for 91, 182, and 364-day maturities. Although you can't structure your overwithholding to exactly fall into those buckets, you can come close enough. Put the first 3 months into 364-day bonds. The next 3 months go into a 182-day followed by a 91-day. And so forth. Perhaps a more relevant comparison would be appropriate. You are, in effect, loaning money to the government. The question you should ask is how much they would pay for that loan normally. Here’s one nice reference for US T-bill rates (http://www.nscb.gov.ph/stats/tbills.asp). It covers the rates month-by-month for 91, 182, and 364-day maturities. Although you can’t structure your overwithholding to exactly fall into those buckets, you can come close enough. Put the first 3 months into 364-day bonds. The next 3 months go into a 182-day followed by a 91-day. And so forth.

]]> By: Overwithheld every year http://www.canadiancapitalist.com/overwithholding/#comment-1114 Overwithheld every year Sun, 26 Mar 2006 21:39:06 +0000 http://www.canadiancapitalist.com/?p=383#comment-1114 You're a life saver! I saw this tip in a book but couldn't find the form anywhere in the CRA web site. You’re a life saver! I saw this tip in a book but couldn’t find the form anywhere in the CRA web site.

]]> By: Investing Intelligently http://www.canadiancapitalist.com/overwithholding/#comment-1062 Investing Intelligently Thu, 23 Mar 2006 16:03:35 +0000 http://www.canadiancapitalist.com/?p=383#comment-1062 We did that in 2005 for my wife who has a ton of tuition credits. We haven't bothered to do it for this year, just too lazy to do it. We did that in 2005 for my wife who has a ton of tuition credits. We haven’t bothered to do it for this year, just too lazy to do it.

]]> By: 0xcc http://www.canadiancapitalist.com/overwithholding/#comment-1058 0xcc Thu, 23 Mar 2006 14:04:49 +0000 http://www.canadiancapitalist.com/?p=383#comment-1058 I filed one for the 2006 tax year because I set up a charitable donation through payroll deduction and it was large enough that I would get about 30% of it back in taxes over the entire year. I got a letter back from the CRA stating that my request was denied because the extra tax I was paying wouldn't cause me 'undue hardship', which is true but that's my money! I don't want them to have it until next spring. I filed one for the 2006 tax year because I set up a charitable donation through payroll deduction and it was large enough that I would get about 30% of it back in taxes over the entire year. I got a letter back from the CRA stating that my request was denied because the extra tax I was paying wouldn’t cause me ‘undue hardship’, which is true but that’s my money! I don’t want them to have it until next spring.

]]> By: Rick http://www.canadiancapitalist.com/overwithholding/#comment-1048 Rick Thu, 23 Mar 2006 04:13:35 +0000 http://www.canadiancapitalist.com/?p=383#comment-1048 brilliant tip. I've lost out on about 400 bones a year for the last 4 years or so. Although it's nice getting that fat little bonus every year :) brilliant tip. I’ve lost out on about 400 bones a year for the last 4 years or so. Although it’s nice getting that fat little bonus every year :)

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