Work long hours of over time so the fine from working to much over time can be paid. It seams the goverment does not to collect all the money they could from the possible fines.
Work long hours of over time so the fine from working to much over time can be paid. It seams the goverment does not to collect all the money they could from the possible fines.
Not a fan of RRSP
Where it is the common low income plan to buy into the RRSP, I would give it some careful though and research. Having had teck stock in the 80's and lost a lot of my RRSP "secure" investment and then again with the mortgage crisis, I have yet to see a real increase. On top of that you cant get it back out till you retire unless you pay a huge tax hit. Even with the up front tax hit, you may well do a lot better to find some solid real estate investments. Suggest, in the US.
I wish I had done that back in the day.
That having said, that too takes some research. A more moderate and less time consuming plan would be to partner with a company with a good reputation. You will likely be looking at between 10-20% REI. I have never seen that on my RRSPs not when I consider all the losses.
Good luck in your future.
You are confusing the tax benefits of an RRSP with the investments inside of that account. RRSPs are a tax deferral - so if you have higher income now than you plan to have in retirement, an RRSP makes sense. If you have low income now and plan to have higher income during retirement, then it may not make sense. Given that it extremely difficult to project that far in advance, for most people with 10 years or more before retirement, RRSPs make a great deal of sense. Depending on your tax bracket, an up-front 30-50% gain on that money due to not paying tax on it is a very good return. If you have $ 100K in an RRSP and in 10 years it is now worth $ 80K what is your return? It is NOT negative - you had let's say an immediate 30% return due to the tax deduction so you are still up by $ 10k. To put $ 100k into real estate you would need to have earned $ 143 K and then paid the $ 43K in taxes on it first.Originally Posted by nxtime1
Now setting aside the tax deferral that RRSPs provide - you are claiming that an investment portfolio of for example ETFs will underperform real estate investing. I'm not sure I'd bet on that - and there are other serious drawbacks to real estate investing. One big one is that you can't put in small amounts as you save it like you can in something like ETFs. Another huge issue with real estate is that it is not liquid. Equities and ETFs are extremely liquid - basically the other end of the spectrum from real estate. Real estate investing also has high startup and transaction costs compared to tiny costs for ETFs and equities. I am not saying REI is bad - just that you need to be aware of all of the properties of a real estate investment and not just anecdotal returns.
If you can get 10-20% return consistently by real estate investing then good for you - you do that. It should definitely not be the ONLY asset class you are investing in. For most people their home ties up such a large part of their overall investments in real estate already that it probably does not make sense to concentrate even more in that one asset class - especially given the liquidity and expense issues with real estate.
James,
I am interested, how is this all working out for you?
Has everything gone as planned/worked as you thought it would? Is it profitable?
Thank you.
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