I Hit 110k today. Thank you for all the knowledge and nuggets you had thrown my way over the last months. Started last month. Financial education is indeed required for more than 70% of the society in the country as very few are literate on the subject. thanks to Wendy Hubbard Stewart for helping me achieve this
Two issues here with what that expert is saying: You should be concerned not by your tax rate, but by your marginal tax rate when you are doing you income tax claiming your contribution. You don’t have to claim your contribution in the year you contribute… So, if you claim your contributions into your RRSPs when your marginal tax rate during your employment years was, say 42% (federal and provincial combined), and when you take out your money from your RRSP/RIFF you are at the 50% marginal income tax level, that’s not good. However, saving on taxes was not your only, potentially, not the main reason for putting money into your RRSP during your employment years in the first place. The number one reason for putting money into your RRSP is “forced savings’ with help from the governments with the yearly tax return. Let’s say you end up with $ 1,000,000 in your RRPS/RIFF at the time of your retirement, sure you’ll be taxed on your withdrawals. But, more importantly, you’ll sleep very well at night, thank you. Now, if you want to optimize things for yourself, invest in your TFSA first. Then, when you get to about $750,000 in your RRSP, think about stopping and putting your investment money into a non-registered account and investing that money in a low dividend-paying, broad base, low cost ETF such at the VTI from Vanguard. That way, when retiring, you can maybe make sure that your RRSP withdrawals are not marginally taxed at a rate that was above your marginal tax rate when you contributed, and you don’t have high-dividend paying individual stocks (such as BCE or a bank) pushing up your marginal tax rate. Your yearly salary at retirement will be your yearly RIFF withdrawals…
I Hit 110k today. Thank you for all the knowledge and nuggets you had thrown my way over the last months. Started last month. Financial education is indeed required for more than 70% of the society in the country as very few are literate on the subject. thanks to Wendy Hubbard Stewart for helping me achieve this
You trade with Wendy Stewart too? Wow that woman has been a blessing to me and my family.
I'm new at this, please how can I reach her?
she's mostly on Instagrams, using the user name
@Fxstewart12 ..that's it .
Please tell her that I reffed you 👍
She’ll guide you💯
Two issues here with what that expert is saying: You should be concerned not by your tax rate, but by your marginal tax rate when you are doing you income tax claiming your contribution. You don’t have to claim your contribution in the year you contribute… So, if you claim your contributions into your RRSPs when your marginal tax rate during your employment years was, say 42% (federal and provincial combined), and when you take out your money from your RRSP/RIFF you are at the 50% marginal income tax level, that’s not good. However, saving on taxes was not your only, potentially, not the main reason for putting money into your RRSP during your employment years in the first place. The number one reason for putting money into your RRSP is “forced savings’ with help from the governments with the yearly tax return. Let’s say you end up with $ 1,000,000 in your RRPS/RIFF at the time of your retirement, sure you’ll be taxed on your withdrawals. But, more importantly, you’ll sleep very well at night, thank you. Now, if you want to optimize things for yourself, invest in your TFSA first. Then, when you get to about $750,000 in your RRSP, think about stopping and putting your investment money into a non-registered account and investing that money in a low dividend-paying, broad base, low cost ETF such at the VTI from Vanguard. That way, when retiring, you can maybe make sure that your RRSP withdrawals are not marginally taxed at a rate that was above your marginal tax rate when you contributed, and you don’t have high-dividend paying individual stocks (such as BCE or a bank) pushing up your marginal tax rate. Your yearly salary at retirement will be your yearly RIFF withdrawals…