My TSX closed on a good 17,621.78 points. Today, it was only a 21.92 points gain, but in my world, any gain, no matter as small as it can be, worth celebrating. Don't you ever forget that everything that go up, sooner or later can go hit the ground in a matter of nothing at all, just to smash you down. I may be getting closer to my first $300 000 - this sounds quite good - but it's no time to get arrogant. For the TSX, the 18 000 points are no longer that far away. And it's what I need to hit on my magic number. Let's not forget that I currently need less than $48 000 to make it happen.
With a potential epidemic crisis coming straight from China, I am not quite sure if this is the right time to invest in anything new. And guess what, I don't even feel into investing in something at the present time. Nothing is really moving me. Things can remain as they are for my portfolio because everything is ok. My investment portfolio is much more than just a gorgeous thing that I keep exhibiting over, over and over again my blog. It's all heart and soul. In my case, my portfolio is a work of art and perfection had almost been reached. I may post another update my portfolio this weekend - again, if the TSX closed tomorrow on a gain, no matter how big, or how small. I am simply asking for a gain.
I know that rather than having a 4k in cash laying in my TFSA portfolio doing nothing, I should get it transferred over my non-registered to pay down my margin, but as explain previously, owning money inside a TFSA portfolio is a privilege, it should remain there. I do not believe in RRSP. RRSP is a trick that the government came with to make even more money on the back of poor citizens. Once you retired, you have to pay huge amount of tax on that money. Sooner or later, you have to pay. I only contribute to my RRSP via my job, but other than that, I won't ever contribute of my hard earn money to a RRSP. It's way better to use the TFSA and non-registered portfolio. That way, you can do whatever you want with your money, and you can benefit from it whenever you need it. I regret investing that much in my RRSP portfolio. I would have like to have it inside my TFSA or non-registered portfolio instead. RRSP is nothing more than bullshit.
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5 comments:
DG, RRSP is a great investment vehicle for early retirees ( before age 60) with a modest income and minimum debt. I plan to retire at age 55....live off my RRSP income until age 65.
There is nothing evil or conspiracy investing inside an RRSP. Basically a RRSP is a deferred tax savings account, which you are right that the government will tax you when you withdraw the amount more than what you are mandated to based on your age and that income is added to your overall income. But you would withdraw it as you are close to retirement, which should reflect your lower income bracket. You can collapse an RRSP organically by withdrawing the minimum amount (2.5%) when you're in your 50s while adding to your basic income. Any leftovers you can then place it inside your TFSA until you are mandated to turn your RRSP to a RRIF when you hit 70 if my memory serves me correct. Like the first poster had said, you can retire early and collapse your RRSP by living the income off it. Once you hit age 65, you can then apply for CPP, OAS and GIS which then becomes part of that income source your RRSP used to provide. The unused portion of the RRSP during the decade of being collapsed can then be invested inside the TFSA, thus reducing your tax profile allowing you to receive the maximum OAS and GIS payment that you deserve. Collapsing RRSP is a common tactic for many people who have a sizeable RRSP and I plan to do so when I hit the age of 55.
I'm not surprised that the RRSP paragraph ended up being controversial.
It's not "a trick that the government came with to make even more money " but it's a way for the middle class to have more money at retirement by investing money now before tax, and paying taxes on the money and its profit when they are in a lower tax bracket.
That said, for people with a modest income (less than 40,000$ a year), contributing to RRSP is not advantagous. It's well documented out there why, here is just one link on the subject :
https://business.financialpost.com/personal-finance/retirement/rrsp/tfsas-may-be-a-better-than-rrsps-for-many-types-of-savers-financial-experts-say
Frederic, I am the writer of the first poster....when I say modest income...I meant modest income during retirement....I am planning to retire at 55, my income then, will be from my RRSP and a deferred pension plan....my estimated income during retirement will be apx $37000/year which is modest....as my tax bracket will be much lower then than what it is now.
Cheers,
Carol
Hi Anonymous, I wasn't responding to your comment, but to Dividend Girl's post and what might be her situation, which may not involve having a lower tax bracket in retirement.
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