RRSP's?

Discussion in 'TRIBE Main Forum' started by The Watcher, Feb 26, 2002.

  1. kuba

    kuba TRIBE Member

    safe-t.net

    Whats a "normal RRSP"?

    An RRSP is just an account. From there you can either keep it in cash (stupid), invest it in GIC (safe but shit), mutual funds (not as safe but sometimes good), bonds (safer than stocks) or stocks (least safe but most return).

    Anyway I just wanted to discuss risk cuz I am a loser and actually interested in these issues.

    Qtip
     
  2. Rosey

    Rosey TRIBE Member

    yeah, my 'rents took a pounding when Nortel hit the fan....like much of canada. the only good side is that they had inherited the shares when my grandmother died, so it's not like it was their savings. but still....
     
  3. madnezz

    madnezz TRIBE Member

    Re: safe-t.net

    Thanks qtip- that is a very clear explanation!!!!

    adios
    Laura
     
  4. silver1

    silver1 TRIBE Member

  5. Klubmasta Will

    Klubmasta Will TRIBE Member

    Re: safe-t.net

    *lol* sorry for the inaccurate terminology. i'm a layman when it comes to investing, which is why i need a wealth manager. i was referring to the big mutual fund companies.
     
  6. kyfe

    kyfe TRIBE Member

    I am moving mine from the standard RRSP fund account to a self directed RRSP account, it gives you the benefits of both the RRSP tax break and the ability to be a little more risky since you can purchase stocks that are still tax sheltered, but just like stock you pay when you trade....GO NORTEL!

    Kyfe
     
  7. LeoGirl

    LeoGirl TRIBE Member

    Right now I'm putting $100/mth in my RRSP.
    Depending on how the next few months pan out, I might increase that to $200/mth.
     
  8. 416

    416 TRIBE Member

    I've got the same deal goin over here. When I get hitched I can plop in another 3 percent of my gross and my work will plop in another 1.5.

    Sweeeeeeeeeeeeeeet action.
     
  9. kuba

    kuba TRIBE Member

    Dont buy NORTEL

    Hey

    Ok, I know many of you lost on nortel, or your parents wiped out your univeristy/car account or whatever. For that I can't say sorry because my name isn't Nortel CEO (John Roth).

    What I can say is this:

    I was sitting at Marche beside these two idiot moron ginos. They started talking about investing as if they had their PhDs in finance. One of them said he owned Nortel and he fired his broker for buying it. The second said he is pumping money in Nortel because "what goes down has to go up again, right"? <as he asked with a blank look in his eyes only reserved for cats>

    WRONG!

    What goes up can keep going up.
    what goes down can stay down.

    Thats the law of the stock market. I know some people are buying Nortel because its cheap and they are making their "entry point" lower. Why is this a bad idea?

    Because Nortel laid of nearly half of its staff, it is losing market share in key areas and its NOT the nortel of old. Its the new, slimmer, not as aggressive Nortel.

    I'm not slamming this company but since so many Canadian owned it except me (but I bought other crap so I'm no God) I wanted to add my $0.02.

    Qtip
     
  10. kyfe

    kyfe TRIBE Member

    I agree with your point and would prefer to stay away from a nortel discussion. but simply put nortel is one of Canada's oldest and strongest company's, not to mention a blue chip stock at times, the stock market is cyclical, a company with solid foundation is not a bad place to put your money long term especially when you can buy it this low. When was the last time prior to 2001 that nortel was sitting below $10 for an extended period of time?.. IMO

    I can wait 10 years to reap the benefits

    Kyfe
     
  11. 416

    416 TRIBE Member

    That's a good point.

    Check out Warren Buffett's investment advice.
     
  12. kuba

    kuba TRIBE Member

    buffett

    Buffet would have never bought Nortel.

    During the tech hey-day, Buffet's Berkshire Hathaway stock plunged while investors made paper gains in NT, Lucent, and a flurry of dot-com-bombs.

    Now Buffett is king because he stayed away and bought "boring" companies like a Paint company and Insurance company. His returns are up. Dot coms are broke.

    Guess who is doing better?

    "I can wait 10 years to reap the rewards"

    You have to ask yourself this:

    Can I make MORE outside of Nortel than IN?

    If you sell now, you have a capital-loss. This can be good because when you make money on your next investment, you can offset the gain with the loss from NT.

    I'm not saying to sell. If you got it, hold it. If you dont, I would never buy it.

    qtip
     
  13. Gizmo

    Gizmo TRIBE Member

    The thing with Nortel is that they have approximately 6 billion in debt in 2008.

    They have to re-classify it next year (e.g. extend the term or pay down some) as to have 6 billion on your books as debt with less than 5 years to maturity can impact your Standard and Poor ratings and the ability to borrow cash. They probably do this by issuing more shares or debt.

    Additional equity = bad for the outstanding shares
    Additional debt = potentially bad for your credit rating and bonds. sometimes carries over to affect stock price.

    If anyone has access to bloomberg you can check the amount of debt the company owes every year by getting the stock up and then using the <DDIS> function.
     
  14. LivingRoomPornstar

    LivingRoomPornstar TRIBE Member

    What is a banking thread without a post from the pornstar!??

    Like the rest of them, i'm sure somehow i'll manage to get in an argument with Will over something..lol

    Although the information is a little scattered in here, everything you need to know is in this thread.

    Here's what i'll add:

    Investment options

    Keep in mind that these recommendations are for average investors with average investment capital.

    For the more conservative investor, or for someone who has a reasonably short investment time frame(someone who is putting away for a condo), stick with Income mutual funds and/or Market Growth GICS.

    Income Mutual Funds

    If your looking for a regular stream of interest income and a good way to preserve capital for a large purchase, A mix of Mortgage, Bond and Dividend Income funds are a great choice. The longer the time frame(up to 4 years) the higher percentage you can allow for a Dividend producing/Blue Chip Equity type investment.

    Do a little homework and compare historical returns on income mutual funds for different institions and firms. The most important to you are 1, 3, 5 and 10 year figures. Although they are not a concretely indicative of future returns, the differences may reflect the quality of management.

    Market Growth/Index Linked GICs

    If you're the type of investor who has at least a 3 year time frame, and would like the peace of mind that comes with having your capital investment being guaranteed, this is the investment for you!

    Market Growth GICs, also known as Index-Linked GICs are a great opportunity to get higher than average rates on a guaranteed product. The rate is based on the growing market index it is attributed to.

    Almost all Index-Linked GICs have a rate cap, or a maximum return you can make. This is where it is best to make comparisons between the various products available. Historically these products have done quite well, with only few exceptions of a 0% return(those maturing early this year.) The term is normally 3 or 5 years, locked in.

    Investors with longer time frames and higher tolerances for risk should meet with an investment advisor to identify the key factors in the investment decision making process. The main factors are Age, Net Worth, Time Horizon, Investment experience and tolerance for risk.

    Look at that! Not one TD plug in there! I'm quite proud.

    *twitch* *shudder* *twitch*


    And anyone who has any general or product specific questions regarding their RRSP or NON RRSP investment choices, feel free to email me, or contact me at the branch at 416-759-4121ext223

    Dan
     
  15. 416

    416 TRIBE Member

    LOL

    All I was eluding to by mentioning Buffett's name is that his entire investment strategy revolves around long term growth.

    Hoola-hoops, Dot Com's and all that fad shiz don't register on his radar.

    If you think Nortel is a solid company with good prospects for the future, then buy it (while it's not hyper inflated) and hold it for 20 years.

    Easy Shmeazy.
     
  16. LivingRoomPornstar

    LivingRoomPornstar TRIBE Member

    Hopefully by then, there'll be even better pharmaceutical solutions to the aging male's verility.

    GO TEAM VIAGRA!

    Different strokes for different folks IMO.

    Some people are of the opinion that they should enjoy themselves now, because they could get hit by a bus tomorrow. You can argue it from any standpoint really.

    I'm in the middle of that spectrum.

    Save for tomorrow, but keep a comfortable lifestyle to boot.

    Dan
     
  17. Klubmasta Will

    Klubmasta Will TRIBE Member

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  18. Guest

    Guest Guest

    I contribute $100/a month torward RRSP's the next few months i might bump that up to $150/a month
     
  19. jason klaps

    jason klaps Well-Known Member

    since all of you seem to be saving all this money for your retirement, I'm surprised that nobody has talked about this interesting tidbit of economics:

    THE PARADOX OF THRIFT (a part of Keynesian theory )

    which basically says:

    By attempting to increase its rate of saving, society may create conditions under which the amount it can actually save is reduced. This phenomenon is called the paradox of thrift, thrift, which has always been held in high esteem in our economy, now becomes something of a social vice.


    any thoughts?
     
  20. LivingRoomPornstar

    LivingRoomPornstar TRIBE Member

    woozle wazzle?
     
  21. SneakyPete

    SneakyPete TRIBE Member

    Sounds like another way of saying inflation.

    Pete
     
  22. kuba

    kuba TRIBE Member

    livingroompornstar:

    I'm not saying that saving all the cash now for later is right.
    Nor am I saying that spending all now b/c one will be hit by a bus is also right.
    The "hit by a bus/macktruck/subway etc" argument is used too many times, especially by people who do not believe in RSPs or who smoke and wont quit because they "only live once".

    I try to live a decently good life. I dont pay $50 for a haircut, nor do I smoke an ounce of weed a month nor do I blow cash on stripbars. But I do buy shit, go out, etc.

    Its all about balance.

    qtip
     
  23. Sporty Dan

    Sporty Dan TRIBE Member

    If you are in university you can take money out of your rrsp without paying tax on it if you pay it back later.

    So you can put the money into an rrsp and get a tax credit for it. take the money back out, not pay taxes and keep your tax credit for the money that went in.

    Then you have 10 years to pay the money back, presumably when you have graduated and have a job where you can afford to save money.



    dan.
     
  24. pr0nstar

    pr0nstar TRIBE Member

    My work contributes RSP?

    I haven't bothered with RRSPs yet. I will probably do it this year if I feel like it. Is RSP the same thing basically but by your work?

    pr0nstar Clueless on the future :D
     
  25. LivingRoomPornstar

    LivingRoomPornstar TRIBE Member

    Its called the Lifelong Learning Plan(LLP), you can find the particulars at www.ccra.ca

    Qtip, I wasn't attacking your viewpoint, dude.

    I was merely sharing my own.

    I do agree that some people for one reason or another make excuses against contributing.

    Usually the culprit in these cases is insecurity. Either they feel they don't have the disposable income to do it, or they don't know enough about it and are trying to mask it by fronting they don't need it.

    Dan
     

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