2017 RRSP Season End Closing in

[GOnSHO]

Hey Guys,

With the 2017 Tax season coming to an end, I was wondering here who maxes out their contributions per year?

Im trying to get a handle on people's thought process around it and why they feel the need to do so.


I am in the Financial Services industry and wanting to know others opinions on doing this.

Is it the the tax write off?
Is it Retirement Planning?
Is it you were just told it was a good idea?

Id love to hear what you think.

Thanks,
Travis

[KPHMPH]

Don’t really put any into RRSP’s.... I try and pull the least amount of money out of my company as I can resulting in less RRSP needed. Also any extra money that I make I dually throw back I to regular investment.

[dirtsniffer]

I don't make enough money to justify putting additional money beyond employer matching portion into RRSP (still have previous TFSA contribution available). maybe once i have a significant amount of income in the higher tax brackets, that way I can leverage the pre and post retirement tax savings.

[roopi]

I never max out my RSP. There are 2 reasons I still contribute to it.

1. 8-10 years ago someone at the bank convinced me to make a weekly deposit to an RSP. It's automatic and all goes into one specific fund I chose and it's up 30% so I just let it keep on going.

2. I will make a small contribution at the end of the year to help offset the amount of tax I need to pay.

[Disoblige]

I have a huge contribution room remaining as I only put company contributions and bonuses in there.

[Chandler_Racing]

For the last 10 years, I have used most of my RRSP contributions room.

My logic is relatively simple: If I had a good bonus the tax refund goes to buying a "material item". If the bonus was bad, I will use the refund as a lump sum payment on the mortgage.

With that said, at the start of 2017, I stopped my monthly RRSP contributions and invested in cryptocurrency instead. Still on the fence if I do a lump sum RRSP contribution before February leaning to no as the market is way to extended.

[Buster]

For the last 10 years, I have used most of my RRSP contributions room.

My logic is relatively simple: If I had a good bonus the tax refund goes to buying a "material item". If the bonus was bad, I will use the refund as a lump sum payment on the mortgage.

With that said, at the start of 2017, I stopped my monthly RRSP contributions and invested in cryptocurrency instead. Still on the fence if I do a lump sum RRSP contribution before February leaning to no as the market is way to extended.

Please don't take this the wrong way, but you are probably the perfect candidate to have an auto-pull on your paycheck, and put into an index ETF RRSP strategy.

[schurchill39]

If I was out of consumer debt I would be maxing it out every year as I'd really like to live a comfortable retirement and in my limited understanding of how things work the tax implications are pretty big. I usually never have to pay anything but getting a refund to then put onto my mortgage would be pretty nice.

For the time being I contribute 13%

[realazy]

I max it out yearly, with that said, it's not hard as my employer contributes 14% and I only contribute 4%.

[blownz]

I at at a catchup point in my life.

Back when my wife and I first had kids and she stayed home for ~4yrs and then 2 yrs of part time work, we weren't able to max RRSP's, TFSA, and RESP. Just wasn't going to happen. But once my wife started working full time and our house was paid off, she had ~$40K of RRSP room, I had ~$100K, and our RESP's were only about 50% funded, and nothing in TFSA. Cue catchup time. Now we have maxed TFSA, almost maxed out RESP (~3 more years to max out previous years) and are working on catching up on RRSP room. We put ~$65K a year in combined and should be caught up in about 5-6 years. Even though we could do a bit more, we don't as there is less of a benefit.

I personally believe maxing RRSP's is a wise move for us because we are both currently have fairly high marginal tax rates and I highly doubt we will be close to that when we retire (want to retire early) and if we are, well I won't be worried about what I could have done differently because I will obviously be doing all right. :)

[Chandler_Racing]

Please don't take this the wrong way, but you are probably the perfect candidate to have an auto-pull on your paycheck, and put into an index ETF RRSP strategy.

I probably wasn't very clear, my contributions were automated (some before tax some after) into various mutual funds (emerging markets, value, small caps, etc.)

1,000 per month was pulled directly out of my chequing (non work related after tax which drives the refund) and then I had 6% deducted immediately off my cheque and 6% was employer matched.

In 2017, I stopped all RRSP contributions (including the matched portion) and invested in crypto instead monthly using dollar cost averaging each month. Best decision I made in a while, RRSP's returned ~7% crypto's returned 1,643%

[ickyflex]

I probably wasn't very clear, my contributions were automated (some before tax some after) into various mutual funds (emerging markets, value, small caps, etc.)

1,000 per month was pulled directly out of my chequing (non work related after tax which drives the refund) and then I had 6% deducted immediately off my cheque and 6% was employer matched.

In 2017, I stopped all RRSP contributions (including the matched portion) and invested in crypto instead monthly using dollar cost averaging each month. Best decision I made in a while, RRSP's returned ~7% crypto's returned 1,643%

Why you you not at least contribute to the matched portion. That is literally free money. Getting lucky on crypto in a bubble doesn't mean it's a good financial decision in the long term. Short term gambles can only pay off for so long until they don't and you end up at square 1 again (bankrupt).

I made 6,900% on ripple, but i'd be foolish to think that a 7% return on your RRSP is something to walk away for to gamble.

[Xtrema]

max out every year to maximize compounding. TFSA or RRSP, all maxed out.

[Chandler_Racing]

Why you you not at least contribute to the matched portion. That is literally free money. Getting lucky on crypto in a bubble doesn't mean it's a good financial decision in the long term. Short term gambles can only pay off for so long until they don't and you end up at square 1 again (bankrupt).

I made 6,900% on ripple, but i'd be foolish to think that a 7% return on your RRSP is something to walk away for to gamble.

Three reasons:

- I changed jobs and negotiated comp instead of RRSP's contributions (believing in point #2);
- I was confident that the capital invested in crypto would outperform the same amount (including matches and tax deductions) had it been in an RRSP's (I'm also bullish on 2018; more cautious about 2019)
- I have a substantial amount in RRSP's and don't want to be to top heavy on RRSP's (tax efficiency on retirement through TFSA)

Not going bankrupt mate, you don't have to worry about me. I'm a CA and CFO more than comfortable managing my money and risk profile. My initial investment and small portion of the gains have been crystalized and are in my bank account.

Personally, I think the stock market is over extended and due for a pull-back. I'm confident, this year I can return my boring 7% in RRSP's if something goes sideways but will adjust when required.

[88CRX]

Why you you not at least contribute to the matched portion. That is literally free money.

Careful.

I posted that not doing employer matched RRSP (ie: free money) was stupid and people were actually defending why people would skip it.

Hell you usually can put your money in, have the employer match then withdraw your money the following year! (edit: not suggesting that pulling money out of an RRSP is a good idea lol)

[Twin_Cam_Turbo]

I do about 25% of my contribution limit these days, just have a $150/week pull directly from my chequing account. I have a large amount of savings sitting in a normal savings account doing nothing, might throw some of that in this year.

[ickyflex]

Careful.

I posted that not doing employer matched RRSP (ie: free money) was stupid and people were actually defending why people would skip it.

Hell you usually can put your money in, have the employer match then withdraw your money the following year! (edit: not suggesting that pulling money out of an RRSP is a good idea lol)

That would surprise me. Free money is free money and it's no look money. To each their own I guess lol

[GOnSHO]

So from what im seeing, is most of you max it out to get the Tax break and Refund, some do it because they think its the best place to put money, investing wise.. and some dont at all.

Interesting, well if anyone is interested in sitting down and trying to maximize growth within some of the LOWER tax vehicles for investing, please feel free to message me. We can chat a bit !!

[TomcoPDR]

Both TFSA and RRSP caught up and max. However reasons are:

- the OCD, I want to see NOA to say $0 contribution room for RRSP each year, I guess it’s somewhat satisfying
- self employed, so I don’t make that much anyways so easy to just toss up and max rrsp, for me not really for write off purpose then
- both TFSA and RRSP not for retirement purpose, just to have some play $$ around in self direct registered stock accounts. Always annoyed with the capital gains factor relating to stocks. So hopefully one day registered accounts can support lifestyle.
- current accountant hates rrsp, I’m structured differently with incorporations. But again I make so little the accountant doesn’t bitch that I’m maxing out rrsp tfsa to “play/gamble” shits and giggles in the stock market with registered accounts

[eblend]

TFSAs are maxed out, RRSP not so much. I only put in as much as my company matches, no more, no less. Not a fan of RRSP, and if I do it right, will probably make more money during retirement than now, so no real benefit. Last year I put in 40k only to offset the taxes owing after I closed down my business, but other than that I think i only have like 60k total in there. Think I will have more than enough when I retire, and can enjoy life now as well instead of saving every penny. 33 with house paid off and 0 in debt of any kind.

[max_boost]

TFSAs are maxed out, RRSP not so much. I only put in as much as my company matches, no more, no less. Not a fan of RRSP, and if I do it right, will probably make more money during retirement than now, so no real benefit. Last year I put in 40k only to offset the taxes owing after I closed down my business, but other than that I think i only have like 60k total in there. Think I will have more than enough when I retire, and can enjoy life now as well instead of saving every penny. 33 with house paid off and 0 in debt of any kind.

TFSA FTW

Not a fan of RRSP as well lol

[Ekliptix]

I'm 37. I've maxed RSPs every year since i was 20 because:
1) I hate paying taxes and a refund on my income tax feels good. Gimme my money back government!
2) It's a way to keep some money saved for retirement. I consider RSP savings off limit.
I don't have time/experience to manage RSP investments, so I pay CIBC to handle it. Been happy with the performance over the last year but I think everything did well in 2017 for growth.

I've always maxed out my TFSA too and have had it managed by CIBC too, but I intend to use my upcoming contribution for higher risk stuff I'll actively be involved in for 2018.

[Feruk]

I don't contribute to my RRSP at all. I have very little contribution room as my work provides a RPP (registered pension plan) which I max out. That plan deducts from my RRSP contribution space. A little unfortunate as I have a basket of high fee mutual funds to choose from instead of low cost ETFs...

[suntan]

Damn that sucks about the high-fee MFs. My wife's DC pension has crazy-low fees. 0.02% for an actively managed bond fund. Jesus I'd suck 10 dicks for that.

[Strider]

Max RRSP, TFSA every year - high marginal tax rate and maximize tax sheltered growth/compounding.

[sabad66]

Damn that sucks about the high-fee MFs. My wife's DC pension has crazy-low fees. 0.02% for an actively managed bond fund. Jesus I'd suck 10 dicks for that.

if she still works at the same company as me, yeah we've got it pretty good relatively speaking. Not quite 0.02%, but still competitive especially considering most have gained at least 10% the past year



Aurion M-Mgr Act Cdn Eq 0.37 %
Aurion Money Market Fund 0.17 %
Aurion M-Mgr Active Bond 0.20 %
Aurion Gl Eq Ind & MF Seg 0.09 %
BLK Bond Index Fund 0.15 %
BLK S&P/TSX Comp Index 0.11 %
BLK EAFE Equity Index 0.17 %
BLK US Equity Index Reg 0.10 %
Ret Target Date Retiree 0.17 %
Ret Target Date 2020 Port 0.17 %
Ret Target Date 2025 Port 0.17 %
Ret Target Date 2030 Port 0.17 %
Ret Target Date 2035 Port 0.17 %
Ret Target Date 2040 Port 0.17 %
Ret Target Date 2045 Port 0.17 %
Ret Target Date 2050 Port 0.18 %
Ret Target Date 2055 Port 0.18 %

[suntan]

Ah, 0.20% for the active bond fund. I'd still suck 10 dicks for that. It returns around 3.5% for the last few years. Amazing performance.