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Thread: Year-End Bonus - RRSP, Cash or TFSA

  1. #1
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    Default Year-End Bonus - RRSP, Cash or TFSA

    Year-end bonus's are coming out, and they allow us to put it in our RRSP, Cash (on payroll) or a TFSA. Not sure what my bonus is yet, but thinking ahead.

    Just bought a house, so could use the cash for decorating, etc.

    Any thoughts, tips, reasons for one vs the other?

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    Whether they give you cash or TFSA it's the same. Either way you are paying the tax on those dollars.

    You could have it go directly into your RSP and then use the refund money for your decorating.

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    Part of mine is going to pay off the CC and the rest to TFSA because I also bought a house this year so the extra cash will be nice to buy other things for the house. Putting it in RRSP would be good if you didn't have a need for it, but it sounds like you need it available.

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    .
    Last edited by Cos; 12-28-2016 at 10:21 PM.
    Originally posted by adam c

    Line goes up, line goes down, line does squiggly things and fucks Alberta
    "The stone age didn't end because we ran out of stones"

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    Originally posted by Cos


    If it goes directly into the RRSP, he would get the full amount and would have no money on a refund.

    My brain must be frozen.

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    what's a year end bonus?

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    Last edited by Cos; 12-28-2016 at 10:21 PM.
    Originally posted by adam c

    Line goes up, line goes down, line does squiggly things and fucks Alberta
    "The stone age didn't end because we ran out of stones"

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    Originally posted by Cos


    Only people in unions get them
    Union scum!
    -U

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    Originally posted by Cos


    If it goes directly into the RRSP, he would get the full amount and would have no money on a refund.
    What do you mean by get the "full amount"? You mean he would get the bonus + expected tax savings? Maybe I'm not understanding this, but as long as you have some contribution room then a RSP contribution will certainly result in some tax savings.

    But to answer your question OP, assuming all options are the exact same amount then I would definitely take cash. Cash is king, and you can always contribute to your registered accounts after the fact since you have the cash.

    If you go directly into RRSP/TFSA and then realize you need the cash, it's a PITA to figure out how to do it and complicates your tax return.

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    Last edited by Cos; 12-28-2016 at 10:21 PM.
    Originally posted by adam c

    Line goes up, line goes down, line does squiggly things and fucks Alberta
    "The stone age didn't end because we ran out of stones"

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    My bonuses are all given to me as fully taxed cash. I then have the option to invest them.

    My order of priority would be:
    - Credit card debt
    - RRSP (and probably spend the refund, although you should invest that too)
    - Other debt (HELOC, car loans etc)
    - TFSA
    - Buy something.
    Make the world a radder place, grow a mullet.
    Public Mobile is the best, just like Phil Collins' mullet.

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    Originally posted by sabad66
    But to answer your question OP, assuming all options are the exact same amount then I would definitely take cash. Cash is king, and you can always contribute to your registered accounts after the fact since you have the cash.
    Bingo. Plus you can take that cash and make RRSP contributions until the end of February next year against this year's income, so you've got lots of time to decide.

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    Thanks guys

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    Max your RSPs.. and if you really want to build wealth, take you tax return and invest that. Alot of people use tax refunds to pay down HELOCs and mortgages.. the cost of borrowing is so low, dont take your money and pay off low interest loans. Credit cards yes, but re investing tax return money will get you further ahead provided youre not drowning in debt.
    I MAKE BALLER CARS MORE BALLER.....

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    - Cash it
    - Spend it on coke and hookers
    - ???
    - write-off as business lunch
    - receive tax refund

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    TFSA
    Buy SPY, IWM, or if you're ballsy UWM. And UWM really isn't that ballsy per se.
    Call it a day.

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    Buy US nickels before they are made illegal in Canada.

    Two years ago, I would have said buy pennies before they take them away.
    Last edited by ZenOps; 12-04-2013 at 01:26 PM.
    Elon needs Nickel

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