Comments on: Book Giveaway #4: RRSPs by Yours Truly

By: H. Ahonen

H. Ahonen — Fri, 19 Mar 2010 02:46:05 +0000

I had locked-in federally regulated RRSPs since early 1980′s. It was $4k initially and grew to about $31K. If I withdraw all my RRSPs now (they are no longer locked-in), can this increase in the value of RRSPs be used as a capital gain agaist my capital losses from the previous years, to reduce my income tax. I work and have a company pension.

By: Preet

Preet — Tue, 02 Feb 2010 03:39:07 +0000

@Rob – If he has a nice pension, then his RRSP contribution room will be reduced, but your point is valid. The best solution is to retire earlier than 71! :)

If he uses the tax refund for something productive (paying down the mortgage, or re-investing), then it will offset the higher tax burden down the road (in terms of overall net worth comparisons).

The problem is more of a psychological one as you have pointed out. It is hard to equate sacrificing the tax refund now for a payoff that may not be realized for many, many decades.

Realistically, if he can focus on using the refund for something productive, I wouldn’t worry too much about it.

By: Rob

Rob — Mon, 01 Feb 2010 18:52:49 +0000

My son started a career 2 years ago which will provide him with a very generous pension when he retires. I have tried to explain the downside of having too much money in an RRSP at retirement, having to pay more tax on the withdrawls than he receives at tax time during his lower income years. He plans on maxing out his TFSA and wants to max out his RRSP, but I’m thinking it could be a nice refund now, but heftier tax owing at 71. Comments?

By: Irene Scott

Irene Scott — Thu, 14 Jan 2010 02:10:34 +0000

Could you do a discussion on the tax implications of selling and buying options?

By: JK

JK — Thu, 05 Feb 2009 14:51:40 +0000

RDSPs

By: Dan G

Dan G — Sun, 01 Feb 2009 00:26:59 +0000

Could you do a article about the cheapest and easiest way to buy shares to start a DRIP for your children. Thanks

By: Linkstuff For Jan 30, 2009

Linkstuff For Jan 30, 2009 — Sat, 31 Jan 2009 01:26:55 +0000

[...] Preet has a book giveaway. [...]

By: linda

linda — Fri, 30 Jan 2009 18:21:18 +0000

Hi Preet, Not sure if it’s covered. I’d be interested in learning about how to compare DB pension and RRSP for younger professionals. thanks.

By: EconStudent

EconStudent — Fri, 30 Jan 2009 16:32:35 +0000

I am interested too.

By: Matthew Adie

Matthew Adie — Fri, 30 Jan 2009 16:20:11 +0000

I’d be interested in learning more about how a small investor can best make use of DRIPs.