# RRSP contribution advise



## gladaki (Feb 23, 2014)

No savings ...
renting a house.
TFSA:500$
Spouse is in school for next 2 year.
Salary without bonuses 75k$
bonuses may vary from 3 to 10%

I never contributed to RRSP. Starting working in canada from 2011 only. My question is :

1.How much % or amount should I contribute to by RRSP ? (Considering I can use it as HBB in next two year or as LLP for my spuse next year)
My employer is matching 50% of maximum 3% salary.
I was thinking of contributing 18% of my income which is 13,500 and employer will add 1125 (50% of maximum 3%)


2.Where to put that money (There is option for TD Waterhouse and TD Future builder mutual fund account), I am new to investing already planning to have eseries in my TFSA to learn about investing.

Any advice will be appreciated.
Thanks


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## wendi1 (Oct 2, 2013)

Well, find out what your RRSP contribution room is - it is on your Notice of Assessment, which CRA mailed you after you did your 2012 taxes.

Don't go over this, as there are penalties for doing so. I would also check with your employer to make sure the matching 50% is not taken back if you withdraw it within a short period of time. HBP money needs to be in 90 days, at least, before it is withdrawn. I'm not sure about the LLP.

Since you are planning on using the HBP or LLP, any money you can put away is good - max it out, without adding credit card debt or LOC debt. For short term money, I would not use e-series, but would use a HISA or a GIC ladder to minimize risk. The stock market is for longer term money, since it is more volatile.


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## gardner (Feb 13, 2014)

wendi1 said:


> check with your employer to make sure the matching 50% is not taken back


It would be more usual for the 50% to be locked-in as long as you work for that employer. The part you put in with it may be locked in also, in some cases, or effectively locked in due to the inability of the pension fund operator to work out which is your part-contribution and which is employer's.

In any case, the employer part is "free money" so I would be figuring out how to take advantage.


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