RRSPs - Are You Contributing This Year (NF)

[bigbuck]

It's that time of year again and I wanted to conduct a bit of an informal poll.

How many people plan on contributing to their RRSP this year and your reasons why or why not.

I'm not trying to sell anyone, I'd just like a feel for what the sentiment is out there.

Thanks,

B

[silveradosheriff]

Yup - same poop, different year.

 

:-)

[irishfield]

Always to max allowed....but only behind the assigned beneficiary "curtain" of a life insurance company. Never with a bank or trust company!

Edited February 6, 2007 by irishfield

[Rich]

Of course.

[walleyejigger]

yup, max out as always to bring the income tax down, plus i don't don't have a pension so everything helps, just wish i was smarter (irish makes me go huh?)

[Carp]

Depends how much I owe.

[snoil]

yep.bi-weekly amount comes out of the bank automatically

[fishindevil]

if i were to contribute i would not have any money left over for fishing. ..i sure cant afford to do that....i only work so i can fish. ..othewise there is no point.. ..cheers so no RRSP's happening here

[irishfield]

yup, max out as always to bring the income tax down, plus i don't don't have a pension so everything helps, just wish i was smarter (irish makes me go huh?)

 

walleyejigger....Do you have any chance of going bankrupt in your life time? Do you operate your own business, are you open to lawsuit, frivilous or otherwise. drive a boat without sufficient insurance coverage, build flying machines, have people land in your yard that could crash/die and have spouse/family sue your ass...etc ..etc.. or any scenario that sees you sued for more than your insurance company is going to cover you for?

 

Any RSP you've worked hard to build up that is held with a bank/trust company etc is gone in the above scenarios.....RSP's with a life insurance company with a named beneficiary can not be touched by any of the above...because it's not your money..it's assigned to someone else already, you just haven't died yet.

 

A very important feature to consider, especially if you're starting out fresh in a new business venture like a few members here have expressed a desire to do here in the last while. A bank loan that can't be repaid due to business collapse could very well see your RSP's being siezed for the outstanding payment...especially if you're in the same bank for both!

Edited February 6, 2007 by irishfield

[SlowPoke]

My contribution level is directly related to my amount owing. I'd like to contribute more but debt retirement takes precidence over my retirement!

Something I have done for the last three years is making my contribution in the first 60 days and parking it in a bond fund until mid to late summer. I got tired of watching my new investments spike at RSP season only to dive in April/May and spend the summer inching there way back into black. I don't have hard data on my findings but I think I'm ahead of the game versus purchasing indexed funds at this time of year. It 'feels' good anyway LOL

-Brian

[Cast-Away]

Personally, I don't think that you should be asking a question like this even if it is an "informal poll".

Edited February 6, 2007 by Cast-Away

[Crazyhook]

always

[LeXXington]

Perosnally, I don't think that you should be asking a question like this even if it is an "informal poll".

 

To ask is fine, to reply is choice?

 

Anyone that can save for there retirement should. If you think the goverment will cover your fishing bill over 65 its a big wish.

 

 

Save all year round to balance out savings.. Use the power of compound intrest and never give someone your money without doing your homework first.

 

For the cost of 2 beer's a week is enough to save..

[Hellfish]

yeah ill contribute a thousand come march after that itz fishing so who knows. If u dont think he should be asking the question just dont answer it or read it what u dont see cant hurt ya

[glirw]

Who needs RRSP's when you dont pay income taxes !

 

Tax evasion all the way !!

 

Haha , naaahh , no RRSP here , maybe in a few years .

 

Remember folks : There is one force in the world stronger than gravity : Compound Interest .

[ricoboxing]

it's my only choice if i still wanna be able to fish after 65. no fancy union job with a pension for me, so i have no choice but to contribute. Woohoo, only 36 more years till retirement! im counting down the days.

[walleyejigger]

walleyejigger....Do you have any chance of going bankrupt in your life time? Do you operate your own business, are you open to lawsuit, frivilous or otherwise. drive a boat without sufficient insurance coverage, build flying machines, have people land in your yard that could crash/die and have spouse/family sue your ass...etc ..etc.. or any scenario that sees you sued for more than your insurance company is going to cover you for?

 

Any RSP you've worked hard to build up that is held with a bank/trust company etc is gone in the above scenarios.....RSP's with a life insurance company with a named beneficiary can not be touched by any of the above...because it's not your money..it's assigned to someone else already, you just haven't died yet.

 

A very important feature to consider, especially if you're starting out fresh in a new business venture like a few members here have expressed a desire to do here in the last while. A bank loan that can't be repaid due to business collapse could very well see your RSP's being siezed for the outstanding payment...especially if you're in the same bank for both!

 

WOW! had no idea, thanks for clearing that up, i guess pretty much anybody can get sued frivilously, or go bankrupt,

 

insurance..... on a boat...... what's that LOL

[mattyk]

I wonder if we can write off fishing equipment and trips as an expense on our taxes? LOL, that would be pretty sweet.

[snoil]

Sure you can.But only for under 16.Sign the kids up for say golf lessons or i'm sure a fishing seminar or hockey school and you can claim up to $500.That started 2007,not last year.

[bigbuck]

Jeez, I didn't want to start a war on the board.

Slowpoke, it depends on what kind of debt you are retiring. If it's a mortgage, put into your RRSP and use the income tax savings to pay down the mortgage. Over the long haul, you'll win with this strategy since you have equity in two forms, your house and your RRSP as opposed to only your house. If it's high interest consumer debt, my advice, take out a line of credit either secured or unsecured to pay off the cards and/or loans. Don't carry balances on credit cards, the interest will literally eat you alive.

For Irish, what you are in for your RRSP makes sense for your situation, but it's not for everyone.

My free advice is this, talk to a financial professional and make a plan and stick to it come hell or high water, it may hurt in the short run but come time for retirement, it's the difference between fly in fishing in a nice Northern resort or the creek behind the government assisted housing you'll be living in because with what the gov't pays in CPP and OAS, you'll barely be able to afford hooks and bait.

[bigfish1965]

I have expensive hobbies...

 

We've got a pretty big RPP at work. They donate and then match our input on top of that. Comes out to 10% of annual income. Nice.

 

I'm watching the markets close cause they are predicting a fairly big correction. If it doesn't happen by summer, it will apparently be a big one come fall. Come June I'll be switching the RPP over to bonds for a few months then back after the correction.

[Fisherman]

Any RSP you've worked hard to build up that is held with a bank/trust company etc is gone in the above scenarios.....RSP's with a life insurance company with a named beneficiary can not be touched by any of the above...because it's not your money..it's assigned to someone else already, you just haven't died yet.

Just out of curiosity, why would there be any difference whether you place or money in a bank/trust co compared to a life ins co, as long as there is a named benificiary. Any 100% definite answers?

[irishfield]

Can you actually "hide" behind a beneficiary with a bank? Not that I am aware of, but who knows these days with them selling car insurance, etc. Ask whom ever has your RSP's. I'm pretty sure only a company that operates under a life insurance structure has the power to do so.

[danc]

I'm with Rick on this one. I have not one, but two union pensions growing very nicely, thank you. I have some RSSP's growing from several years ago as well. But bottom line. There's no need to die a millionaire. And I don't intend to do so.

[camillj]

Yep ... been doing it monthly (at max) for over 25 years ... I only hope I actually get to use it some day ... it all looks good on paper but I often wonder whether I'll be the beneficiary in the end ... (yes Irish I too do mine through an insurance company and have named beneficiary - but - for those who may wonder - that doesnt restrict what you can invest in - mines pretty balanced to meet my 'risk/reward plan')

 

Far as I know govt money (at least for me goes entirely in one direction - to them ... to be shared among those who obviously need it more than I do ....shrug ....