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Thread: RRSPs

  1. #1
    Join Date
    Sep 2007
    Location
    Rocky Mountain House
    Posts
    349

    Default RRSPs

    Anyone have any tips or suggestions as far as rrsps go? I figure its about time i start saving for retirement but i dont know anything about em
    Ice Oval Sled Racing

  2. Default

    Did you get the PM I sent you?

  3. #3
    Join Date
    May 2004
    Location
    Calgary, AB
    Posts
    802

    Default

    Nice to have it taken right off your cheque from your employer or next best thing the Bank you deal with take it off on payday.

    I thinkin of settin it up with my bank to start up RRSP but seein what union pension will get me first.

  4. #4
    Join Date
    Mar 2010
    Location
    Rural Alberta
    Posts
    323

    Default

    Rrsp's are good to an extent. The only problem is they don't build interest at the same rate as inflation. So if you put $500 a month in a basic account now sure it will have grown to maybe a couple hundred thou by the time you wanna retire but it's gonna cost you $40,000 a year to live then so it will go fast. If you Invest in a higher risk/higher return investment you can make alot more. Or lose it. I dont know much about the details on which investments are good/ bad. I buy land. It's the safest way if you can afford it and it appreciates with the economy.
    Mustangs are like Hemorrhoids, sooner or later every asshole gets one.

  5. #5
    Join Date
    Sep 2007
    Location
    Rocky Mountain House
    Posts
    349

    Default

    Pm sent back Yellow Fever

    Quote Originally Posted by REDNECK View Post
    Rrsp's are good to an extent. The only problem is they don't build interest at the same rate as inflation. So if you put $500 a month in a basic account now sure it will have grown to maybe a couple hundred thou by the time you wanna retire but it's gonna cost you $40,000 a year to live then so it will go fast. If you Invest in a higher risk/higher return investment you can make alot more. Or lose it. I dont know much about the details on which investments are good/ bad. I buy land. It's the safest way if you can afford it and it appreciates with the economy.
    If I had the cash I would definetly invest in land, prices only ever seem to go up, even if for a while they do go down, but I am in not that type of position. I don't think I could ever invest in higher risk investments, the thought of loosing it is just too much for me lol. Safe investments are probably only way to go for me, unless I start putting some extra cash aside to play with. Are RRSPs the only way to go as far as safe investments? My "savings" account at the bank is just a joke i'm pretty sure my monthly charge ends up being more than the interest I make back. What are RRESPs or whatever?
    Ice Oval Sled Racing

  6. Default

    PM sent back to you.

  7. Default

    Taking inflation into account. If you want to live on $40,000.00 of today's money for 20 years. You would have to contribute approx $1100.00 per month for 36 years @5% with 3% inflation. That's $116,000.00 annualy with inflation factored in. That is doable. Start early is the best advise.

  8. Default

    I'm no financial wizard, so take this advice with a grain of salt, but to me a RRSP is only a tool for deferring the payment of income tax until you're in a lower tax bracket. If you're in the same tax bracket now as you intend to be in retirement, then it's probably not the investment vehicle you want to use.

    I'd personally recommend filling your TFSA first, investing that however you see fit. Just like an RRSP, a TFSA can be invested as high or low risk as you want. The downside is that you only have very limited room in your TFSA ($15k currently, $20k at the start of next year).

  9. Default

    An RRSP reducing the amount of taxable income that you pay income tax on. The more you make...the better it works. I highly doubt that many individuals will have this same problem come retirement. I've been doing this for 20 years. And only a very few people have done it right.Could you live on $900.00 per month? If the answer is no. Then I suggest you start doing something about it.

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