Personal Finance & Money Stack Exchange
Personal Finance & Money Stack Exchange

Questions tagged [rrsp]

To be used for questions related to RRSP [Registered Retirement Savings Plan] as applicable in Canada. This is an older program, the newer one being TFSA [Tax Free Savings Account Program]

131 questions
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If you're loaning yourself a mortgage, why must you pay interest? At the bank's posted rate?

I'm addled. You're withdrawing money from your own Registered Retirement Savings Plan(RRSP), and you must repay it. You're not using the approved lender's money at all! So why must you pay interest to borrow your own money? Why is the bank using…
user40527
16
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4 answers

Minimize taxes now that I earn more

Background I recently received a hefty promotion for $350k (plus stocks and bonuses) with the same company. Now that I can finally start to pay down my debt, I'm not so happy that suddenly 45% of my pay disappears in the form of…
Tonio
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What kind of investments should I have in my RRSP?

I plan to retire in 15-20 years... what kind of investments should I consider holding in my RRSP? I don't like very risky investments, but I also don't want to be too conservative.
S. Chang
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TFSA vs. RRSP... Best retirement approach

What's the best retirement strategy? Assuming I have $1000 and room in both my TFSA and RRSP contribution, where should the $1000 go?
M.Attia
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9
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Withdrawing cash from investment: take money from underperforming fund?

Suppose Bob has $15K invested in an account with 2 funds (for this question we'll assume a Canadian RRSP, but the country/tax implications probably aren't relevant). He has $10K in a conservative balanced fund (let's call it Fund #1) that…
Jordan Rieger
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8
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3 answers

Which account should I put my money to get the most tax benefit?

I have $5,000 that I would like to put in to an investment account. To get the maximum tax benefit, should I put it in my RRSP, my child's RESP, or my TFSA account? I have enough room in each of these, and I shouldn't need to use it for 15 years.
S. Chang
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Pay off debt with RRSPs, or refinance and roll into Mortgage?

A few years of a combination of under-employment and trying to keep afloat a floundering business has left me (us) with 50k debt on a line of credit and a credit card. We are getting 5k back from income tax but that still leaves us with 45k of…
Financial Idiot
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Cash out retirement account or sell and downsize the house to pay off line of credit?

I am in my mid 40's and I have an outstanding secured line of credit with a large balance that I want to clear. I can only come up with 2 scenarios to clear this amount based on my home equity and retirement savings. Keep the house, but cash in all…
JRM
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Can I pay my partner’s income tax (Canada)

I net approx. twice what my spouse does. At income tax time can I pay her income tax for her so she has more money to invest in her retirement savings account (RRSP)? I know that if I were to give her money I would have to pay tax on this ‘gift’,…
Dugan
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Ought a 63-year old working hotel employee commence an RRSP?

If I understood Global News, MoneySense, the Wealthy Barber, and Reddit, my dad ought NOT start or contribute to an RRSP! Right? Thanks. Facts He's 63 years old, and has no children under 18. He works at a hotel and lives in Ontario. His annual…
user40269
6
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2 answers

What is a good place to park a Christmas bonus? Pay down the mortgage, TFSA or RRSP?

Many companies in Canada tend to pay out bonuses around Christmas time. If one is fortunate enough to get one this year what is the best strategy for the bonus? TFSA's have a limit of $5000 yearly. An RRSP will defer taxes and sometimes result…
Zephyr
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What is the difference between 401(k) accounts in the U.S. and RRSPs in Canada?

What are the major differences between the two?
blueberryfields
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6
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Are RRSP investment accounts, in Canada, available to temporary residents?

Is it possible for a temporary (non-citizen) long term (leaving in 2 years) resident in Canada to obtain RRSPs? Is it advisable?
blueberryfields
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Nit picky personal accounting question: What is the right way to record borrowing from yourself?

I keep a spreadsheet with my personal financial statements (balance sheet, income statement, cash flow) that generally follows the corporate approach. I omit considerations of depreciation, etc. There's one nit picky detail that doesn't sit well…
fideli
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Does an RRSP loan provide any benefit, vs. simply making monthly RRSP contributions?

While evaluating a short term RRSP loan like this one, the numbers seem good on paper. But: If I need to save $1,000 in tax deductions, I need to put the entire borrowed money into the RRSP before I start making any loan payments. But the loan…
Victor123
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