Quantcast
RRSP or TFSA. Where to put more $$ - Page 4 - Beyond.ca - Car Forums
Page 4 of 6 FirstFirst ... 3 4 5 ... LastLast
Results 61 to 80 of 118

Thread: RRSP or TFSA. Where to put more $$

  1. #61
    Join Date
    Nov 2004
    Location
    edmonton
    My Ride
    Ford
    Posts
    426
    Rep Power
    20

    Default

    Bump this. Since finishing mortgage last year, got like 50k sitting in my regular savings account doing nothing. First year of real savings what to do with it?
    Street Tune
    446HP 536TQ W/6# Lower, 3.5 upper 16* and 16psi

  2. #62
    Join Date
    Nov 2003
    Location
    Moo Town
    My Ride
    (0^oo^0)~
    Posts
    746
    Rep Power
    23

    Default

    Keep standard emergency fund, max out TFSA, and spend the rest on hookers and blow if you don't need more stonks.

  3. #63
    Join Date
    Mar 2009
    Location
    Calgary
    My Ride
    Silverado
    Posts
    3,082
    Rep Power
    46

    Default

    Personally,

    Max tfsa then max rrsp

  4. #64
    Join Date
    Jan 2008
    Location
    Upstairs
    My Ride
    Natural Gas.
    Posts
    13,311
    Rep Power
    100

    Default

    Put in RRSP and put tax refund in TFSA.
    Quote Originally Posted by killramos View Post
    This quote is hidden because you are ignoring this member. Show Quote
    You realize you are talking to the guy who made his own furniture out of salad bowls right?

  5. #65
    Join Date
    Apr 2005
    Location
    Calgary
    My Ride
    Buffalo Truck & An Angry Kitty
    Posts
    2,603
    Rep Power
    27

    Default

    TFSA vs. RRSP largely depends on you current income relative to your expected future income. If you think you're going to make a higher income in the future then the conventional wisdom says TFSA now then RRSP later. Lots of other factors at play that could tilt the recommendation one way or the other. Then once you chose the type of account you still have to decide on how to invest the money and that in and of itself is a whole other conversation.
    "Masked Bandit is a gateway drug for frugal spending." - Unknown303

  6. #66
    Join Date
    Mar 2010
    Location
    Calgary
    My Ride
    Ioniq 5
    Posts
    1,779
    Rep Power
    45

    Default

    As others have said, TFSA first but don't just get a bank savings TFSA, set it up so you can invest it in a indexed fund or ETF so it actually makes you money rather than the 1% a bank will give. There's a few different options you can read through the investment long term thread. Examples (in no particular order) are QQQ (S&P500 index), VGRO (Vanguard growth ETF), VTI (Vanguard total stock market etf), or ARKK (ARK Innovation ETF). Decent idea to split things across a few funds too.

    https://forums.beyond.ca/threads/255...stments-Thread

    TFSA is always first because you can access the money if something comes up, RRSP you have to pay penalties to withdraw whereas TFSA can be pulled out and the next calendar year put back in. After TFSA then do your RRSP and then just do regular investments without any tax sheltering. You can still invest in the same funds above, you'll just pay tax on the gains when you go to retire or pull it out.

  7. #67
    Join Date
    Sep 2014
    Location
    Airdrie
    My Ride
    6.2 / 690
    Posts
    179
    Rep Power
    0

    Default

    RRSPs are basically betting on the future having the same tax rates... not sure how much I trust them, but they are obviously a tool that you should be using to some extent. Now the TFSA... that's free money. Make sure you have it maxed out and setup for investments, do some research if you don't want to be watching it like a hawk all the time you can find some fairly safe ETFs to park it in, all gains are tax free (but you can't claim losses either)

    I like Extraslow's idea it's pretty clever, if your RRSP room will allow that much you could end up with a pretty big tax return
    Last edited by tcon; 02-25-2021 at 01:04 AM.

  8. #68
    Join Date
    Jan 2008
    Location
    Upstairs
    My Ride
    Natural Gas.
    Posts
    13,311
    Rep Power
    100

    Default

    Quote Originally Posted by tcon View Post
    This quote is hidden because you are ignoring this member. Show Quote
    I like Extraslow's idea it's pretty clever, if your RRSP room will allow that much you could end up with a pretty big tax return
    I always like getting 36% of my investment back in cash 30-90 days later. I think that's a pretty good "ROI" even if I end up paying tax on the money in 20-30 years. Your marginal tax rate may vary.
    Quote Originally Posted by killramos View Post
    This quote is hidden because you are ignoring this member. Show Quote
    You realize you are talking to the guy who made his own furniture out of salad bowls right?

  9. #69
    Join Date
    Jul 2010
    Location
    Homeless
    My Ride
    Blue Dabadee
    Posts
    9,562
    Rep Power
    100

    Default

    Speaking of “bank savings” TFSA’s.

    It should be a jailable offence for banks to openly try and convince their clients to open cash TFSA’s with them. As far as I’m concerned that is straight up taking advantage of the financially illiterate and should be criminal. It’s also ridiculously common.
    Originally posted by Thales of Miletus

    If you think I have been trying to present myself as intellectually superior, then you truly are a dimwit.
    Originally posted by Toma
    fact.
    Quote Originally Posted by Yolobimmer View Post
    This quote is hidden because you are ignoring this member. Show Quote

    guessing who I might be, psychologizing me with your non existent degree.

  10. #70
    Join Date
    Aug 2009
    Location
    AB
    Posts
    31
    Rep Power
    0

    Default

    I make regular contributions to my RRSP and then use the tax refund to max the TFSA each year. Using this tax table will help guide your decision - https://www.taxtips.ca/taxrates/ab.htm

    Personally if I was making <98,040 I'd only contribute to the TFSA until you max it. More than that and I'd contribute to the RRSP to an amount that wouldn't drop your taxable income below that 98k threshold. Where you are in your career should have an impact too. If you're early in your career making say 65k but you have a trajectory to be making 150k in the next 10 years, then it would make sense to not use that RRSP room so you can get a bigger tax refund later. In that case, directing everything to the TFSA until you're in a higher bracket would be the right play.

  11. #71
    Join Date
    Jan 2004
    Location
    Calgary, Alberta
    My Ride
    Bicycle
    Posts
    9,252
    Rep Power
    48

    Default

    Quote Originally Posted by killramos View Post
    This quote is hidden because you are ignoring this member. Show Quote
    Speaking of “bank savings” TFSA’s.

    It should be a jailable offence for banks to openly try and convince their clients to open cash TFSA’s with them. As far as I’m concerned that is straight up taking advantage of the financially illiterate and should be criminal. It’s also ridiculously common.
    Retirees ain't got the diamond hands to hold anything but cash. Even if return doesn't remotely follow inflation and they don't understand the concept of QE.

    Heck, even banks have stopped hoarding cash due to QE policy.

  12. #72
    Join Date
    Jul 2010
    Location
    Homeless
    My Ride
    Blue Dabadee
    Posts
    9,562
    Rep Power
    100

    Default

    Quote Originally Posted by Xtrema View Post
    This quote is hidden because you are ignoring this member. Show Quote
    Retirees ain't got the diamond hands to hold anything but cash. Even if return doesn't remotely follow inflation and they don't understand the concept of QE.
    I’ve seen examples of banks pressuring people to open TFSA’s in accounts that weren’t even interest bearing.

    Again. This is stupidly common.

    I have very little sympathy for retail banking. In a lot of ways they are worse than payday lenders.
    Originally posted by Thales of Miletus

    If you think I have been trying to present myself as intellectually superior, then you truly are a dimwit.
    Originally posted by Toma
    fact.
    Quote Originally Posted by Yolobimmer View Post
    This quote is hidden because you are ignoring this member. Show Quote

    guessing who I might be, psychologizing me with your non existent degree.

  13. #73
    Join Date
    Apr 2006
    Location
    Cowtown
    My Ride
    10' 4Runner SR5
    Posts
    6,343
    Rep Power
    58

    Default

    At the very worst you could open a TFSA with EQ Bank and get 2.30% without leaving your couch.
    Ultracrepidarian

  14. #74
    Join Date
    Apr 2005
    Location
    Calgary
    My Ride
    Buffalo Truck & An Angry Kitty
    Posts
    2,603
    Rep Power
    27

    Default

    Quote Originally Posted by killramos View Post
    This quote is hidden because you are ignoring this member. Show Quote

    I have very little sympathy for retail banking. In a lot of ways they are worse than payday lenders.
    At least with a payday lender you KNOW you're getting screwed, too many people just assume the banks are doing right by their customers.
    "Masked Bandit is a gateway drug for frugal spending." - Unknown303

  15. #75
    Join Date
    Jul 2010
    Location
    Homeless
    My Ride
    Blue Dabadee
    Posts
    9,562
    Rep Power
    100

    Default

    As a rule I just don’t engage when friends like to talk about their “financial advisors” at their parents community bank branch and all the great mutual funds they have their money in.

    I just pour another beer.

    I had to get in a fight with the CRA a few years back because RBC advised my brother to open a non interest bearing TFSA with them that they subsequently advised him to overcontributed to. CRA wanted to charge him penalties for overcontributing despite the fact that it was RBC who fucked up and that he never had a chance of actually making any tax free gains because of the account he had with them.

    Fuck retail banking.
    Last edited by killramos; 02-25-2021 at 11:36 AM.
    Originally posted by Thales of Miletus

    If you think I have been trying to present myself as intellectually superior, then you truly are a dimwit.
    Originally posted by Toma
    fact.
    Quote Originally Posted by Yolobimmer View Post
    This quote is hidden because you are ignoring this member. Show Quote

    guessing who I might be, psychologizing me with your non existent degree.

  16. #76
    Join Date
    Aug 2012
    Location
    Down by the River
    My Ride
    GMC Sierra, LX570
    Posts
    830
    Rep Power
    13

    Default

    Contribute to RRSP to achieve max employer contribution, the remainder to TFSA (to achieve 10% of income into savings). Then Max RESP to government match ($209 per kid, per month), then mortgage.

    All this after no debt (excluding mortgage). #DaveRamsay

  17. #77
    Join Date
    Nov 2004
    Location
    edmonton
    My Ride
    Ford
    Posts
    426
    Rep Power
    20

    Default

    Quote Originally Posted by SkiBum5.0 View Post
    This quote is hidden because you are ignoring this member. Show Quote
    Contribute to RRSP to achieve max employer contribution, the remainder to TFSA (to achieve 10% of income into savings). Then Max RESP to government match ($209 per kid, per month), then mortgage.

    All this after no debt (excluding mortgage). #DaveRamsay
    I have no dept, Mortage and vehicle paid off, playing around with tax return if put 45k in rrsp it brings my refund up by 14k.
    I have an investing TFSA but the money just been sitting for a year as i don't know what to invest in. Household income around 190 last year me at 110. probably won't much more than that in the future.
    Last edited by blairtruck; 02-25-2021 at 02:23 PM.
    Street Tune
    446HP 536TQ W/6# Lower, 3.5 upper 16* and 16psi

  18. #78
    Join Date
    Jan 2008
    Location
    Upstairs
    My Ride
    Natural Gas.
    Posts
    13,311
    Rep Power
    100

    Default

    So your options are
    1) Put 45k in TFSA
    or
    2) Put 45k in RRSP AND 14K in TFSA?

    I dunno, that math is easy for me no matter what your opinion is on taxes.
    Quote Originally Posted by killramos View Post
    This quote is hidden because you are ignoring this member. Show Quote
    You realize you are talking to the guy who made his own furniture out of salad bowls right?

  19. #79
    Join Date
    Apr 2004
    Location
    Calgary
    Posts
    2,093
    Rep Power
    43

    Default

    Quote Originally Posted by blairtruck View Post
    This quote is hidden because you are ignoring this member. Show Quote
    I have no dept, Mortage and vehicle paid off, playing around with tax return if put 45k in rrsp it brings my refund up by 14k.
    I have an investing TFSA but the money just been sitting for a year as i don't know what to invest in. Household income around 190 last year me at 110. probably won't much more than that in the future.
    When do you think you want to use this money? Retirement? Or do you want to buy any expensive toys or a bigger house at some point soon?

  20. #80
    Join Date
    Feb 2004
    Location
    CAL
    My Ride
    XT6
    Posts
    608
    Rep Power
    21

    Default

    Quote Originally Posted by ExtraSlow View Post
    This quote is hidden because you are ignoring this member. Show Quote
    So your options are
    1) Put 45k in TFSA
    or
    2) Put 45k in RRSP AND 14K in TFSA?

    I dunno, that math is easy for me no matter what your opinion is on taxes.
    You're only considering tax at inception but also have to be mindful of tax efficiency on redemption.

    What happens if those investments grow to $450K and you need to withdraw?

Page 4 of 6 FirstFirst ... 3 4 5 ... LastLast

Similar Threads

  1. Rrsp & Tfsa Both

    By vkesava1 in forum Real Estate / Finance
    Replies: 5
    Latest Threads: 01-13-2015, 01:15 PM
  2. RRSP, TFSA, or Both?

    By spike98 in forum Real Estate / Finance
    Replies: 16
    Latest Threads: 02-13-2014, 02:44 PM
  3. Year-End Bonus - RRSP, Cash or TFSA

    By Brent.ff in forum Real Estate / Finance
    Replies: 16
    Latest Threads: 12-04-2013, 01:23 PM
  4. TFSA and RRSP

    By Vmack in forum Real Estate / Finance
    Replies: 45
    Latest Threads: 03-21-2013, 06:47 AM
  5. How much does everyone put into RRSP every month?

    By SJW in forum Society / Law / Current Events / Politics
    Replies: 85
    Latest Threads: 12-23-2010, 11:53 AM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •