The Watcher
TRIBE Member
How much money do you put in RRSP's every month?
Just Wondering
-Nick
Just Wondering
-Nick
-
Hi Guest: Welcome to TRIBE, the online home of TRIBE MAGAZINE. If you'd like to post here, or reply to existing posts on TRIBE, you first have to register. Join us!
RRSP's?
- Thread starter The Watcher
- Start date
nusty- why do you THINK he's asking?? *L* he wants to put money in! *S*
I was just at the bank this morning actually to check this all out... turns out since I havent done any taxes yet (Im a few years behind *S*) I cant contribute until next year because they dont have enough records on me!
adios
Laura
I was just at the bank this morning actually to check this all out... turns out since I havent done any taxes yet (Im a few years behind *S*) I cant contribute until next year because they dont have enough records on me!
adios
Laura
The Watcher
TRIBE Member
I dont know how much I should be contributing monthly...
I would rather do it monthly than yearly... sacrifice a little all year instead of alot at the end of the year.
I've got 2 RRSP's going... one through my bank, which I put 50$ a month in, and one through my work, which I put 100$ a month before taxes come of my paycheck.
I would like to know how much everyone else does...
-Nickers
I would rather do it monthly than yearly... sacrifice a little all year instead of alot at the end of the year.
I've got 2 RRSP's going... one through my bank, which I put 50$ a month in, and one through my work, which I put 100$ a month before taxes come of my paycheck.
I would like to know how much everyone else does...
-Nickers
Booty Bits
TRIBE Member
6% of my bi-weekly income goes directly from my paycheque, and my company matches 3% of it too.
its a pretty sweet deal.
3% doesn't sound like much, but considering it ain't coming outta my pocket, i'm as pleased as punch about it.
its a pretty sweet deal.
3% doesn't sound like much, but considering it ain't coming outta my pocket, i'm as pleased as punch about it.
Soundstream
TRIBE Member
Do not do what my parents did and wait until age 47 to start your RRSP. 
They said it's not the easiest way to save up money.
Cheers ... Ian
They said it's not the easiest way to save up money.Cheers ... Ian
i'm 24 and i've been contributing regularly to my RRSP's since i was 16. depending on my financial picture as i went along i have put in between $0 - $100 every month. but on the advice of my accountant i have stopped contributing altogether because it is not worth it right now.
the point being, yes it is good to save your money, without a doubt you should put cash away every year, but if you are not making more than $50,000/a there is very little point in using an RRSP. the benefit of an RRSP is that it is a tax shelter, but if you are not making enough money to really need a tax shelter then you are better off putting your money into something else. what that something should be depends on the individual and their tolerance for risk.
remember, if you don't max out your contribution option it doesn't disappear, you still have that next year, and the year after, etc. if i put nothing into my RRSPs for ten years, then in ten years i can put in that years amount, plus the amount i had available to me in each of the ten previous years. sure, the arguement to invest early and stay invested is valid, but you can do that outside of an RRSP.
do not equate an RRSP with investment and savings, that banks want you to contribute because it is good for their business and they know they will have your money for a long time. they will not tell you anything that is untrue, but for young people like us, who will likely be making more money in 10 years then we are now, invest elsewhere! save your contributions until you can benefit the most from a tax break!
the point being, yes it is good to save your money, without a doubt you should put cash away every year, but if you are not making more than $50,000/a there is very little point in using an RRSP. the benefit of an RRSP is that it is a tax shelter, but if you are not making enough money to really need a tax shelter then you are better off putting your money into something else. what that something should be depends on the individual and their tolerance for risk.
remember, if you don't max out your contribution option it doesn't disappear, you still have that next year, and the year after, etc. if i put nothing into my RRSPs for ten years, then in ten years i can put in that years amount, plus the amount i had available to me in each of the ten previous years. sure, the arguement to invest early and stay invested is valid, but you can do that outside of an RRSP.
do not equate an RRSP with investment and savings, that banks want you to contribute because it is good for their business and they know they will have your money for a long time. they will not tell you anything that is untrue, but for young people like us, who will likely be making more money in 10 years then we are now, invest elsewhere! save your contributions until you can benefit the most from a tax break!
I put in about $500 per month. But what I do is borrow the money so that way I HAVE to pay it back. The interest rate is so low not that its worth it for me since usually I'm no good with paying myself first.
As for the person above who stated they want to buy a condo, did you know that with RRSPs one can take out up to $20K for a first-time home buyer penalty free as long as you pay it back within X amount of years? (Check X with the CCRA). You have to pay it back but there are scheduled payments so its a pretty good deal.
At one point I was all happy and had about $22K saved up at age 20 thats a good feat. Its all about the stock market.
Then things went POOP so not I'm half that. THing is, I dont have any rich relatives or parents, basically I'm gettingjackshit when they die so RRSPs are alot more important to a person like me over someone who is a single-kid with parents whose house is valued at over 500K and its paid off.
Good luck.
the guy whose been saving since he was 8 is on the right track. I remember I used to work at a fast food joint with these idiots who use to say "fuck rrsps, i want my money NOW not when I'm 65". Thing is, this guy (the 8-year old rsp saver who isnt 8 anymore, lets call him NUSTY will be the one with 3 girls off each arm at 65 while those boneheads I was talking about will be driving a 85 K-car.
Way to go nusty.
qtip
As for the person above who stated they want to buy a condo, did you know that with RRSPs one can take out up to $20K for a first-time home buyer penalty free as long as you pay it back within X amount of years? (Check X with the CCRA). You have to pay it back but there are scheduled payments so its a pretty good deal.
At one point I was all happy and had about $22K saved up at age 20 thats a good feat. Its all about the stock market.
Then things went POOP so not I'm half that. THing is, I dont have any rich relatives or parents, basically I'm gettingjackshit when they die so RRSPs are alot more important to a person like me over someone who is a single-kid with parents whose house is valued at over 500K and its paid off.
Good luck.
the guy whose been saving since he was 8 is on the right track. I remember I used to work at a fast food joint with these idiots who use to say "fuck rrsps, i want my money NOW not when I'm 65". Thing is, this guy (the 8-year old rsp saver who isnt 8 anymore, lets call him NUSTY will be the one with 3 girls off each arm at 65 while those boneheads I was talking about will be driving a 85 K-car.
Way to go nusty.
qtip
or you can do what i did, since i didn't really have much in my rrsps i took out a loan at the bank and had them put it in an rrsp for the minimum 90 days. after that i withdrew the money and paied off the loan - however according to the new home buyer plan i was able to claim that i withdrew the money to go towards the house i was co-purchasing.
needless to say i got a nice $15k rrsp deduction available to claim whenever i feel it neccessary. for basically nothing.
but - you do have to pay back whatever you take out over 15 years.
and it's better to put in monthly if you can, something about dollar cost averaging. a minimum is usually about $25/month thru banks although most mutual funds are $50/month. i would try for between 5-10% of your after tax salary.
--craig
Klubmasta Will
TRIBE Member
at a minimum, you should try to max out your rrsp contribution limit each year. this number is listed on your income tax return from the previous year and it depends on your income.
take that number, divide it by 12 and contribute that much each month.
if you have more to contribute each month, you might want to consider slightly higher risk investments. (you can afford to take more risks when you're young!)
take that number, divide it by 12 and contribute that much each month.
if you have more to contribute each month, you might want to consider slightly higher risk investments. (you can afford to take more risks when you're young!)
Will said:
"if you have more to contribute each month, you might want to consider slightly higher risk investments. (you can afford to take more risks when you're young!)"
I would disagree. When you are young, the point is to save save save and build a nest egg. Then, when one is above 30 or so, and they have like 50K or so, they can play with 5-10% for risky investments and have the rest in a conservative mode. Whats the point of being risky with your nest egg when youre young.
Of course, this all depends on your definition of "risky". Do you mean:
risky = stocks
or
risky = risky tech stocks or speculative stocks
or
risky = not having money under mattress
??
q
"if you have more to contribute each month, you might want to consider slightly higher risk investments. (you can afford to take more risks when you're young!)"
I would disagree. When you are young, the point is to save save save and build a nest egg. Then, when one is above 30 or so, and they have like 50K or so, they can play with 5-10% for risky investments and have the rest in a conservative mode. Whats the point of being risky with your nest egg when youre young.
Of course, this all depends on your definition of "risky". Do you mean:
risky = stocks
or
risky = risky tech stocks or speculative stocks
or
risky = not having money under mattress
??
q
Well I think I started around 17 or so and was putting in 50 bucks per month.
About a year a go I changed that to 100 per month, but I lost everything I put in the last few years.......meaning I contributed 1200 per year and that's about how much they've lost each year.
I have them in Canadian blue chip, us blue chip, and Canadain bonds.
But it'll come back, I think everyone has taken a shit kicking, We have lots of time to make up for it, Unlike my rent's who have lost prolly close to 100,000 and have only 5 or so years left b4 they will retire. ps, some of the 100 gs is in stocks as well.
Dave
About a year a go I changed that to 100 per month, but I lost everything I put in the last few years.......meaning I contributed 1200 per year and that's about how much they've lost each year.
I have them in Canadian blue chip, us blue chip, and Canadain bonds.
But it'll come back, I think everyone has taken a shit kicking, We have lots of time to make up for it, Unlike my rent's who have lost prolly close to 100,000 and have only 5 or so years left b4 they will retire. ps, some of the 100 gs is in stocks as well.
Dave
okay, i just checked here:
http://www.ccra-adrc.gc.ca/E/pub/tg/rc4135eq/rc4135eq.html
and it is 15 years.
i think you should switch bankers.
--craig
daddyiwantchocolate
TRIBE Member
Re: i say again....
just over $900 a month, then 4-500 for other shit.
just over $900 a month, then 4-500 for other shit.
Klubmasta Will
TRIBE Member
i said "slightly higher risk investments" - meaning slightly higher-risk than normal rrsps. these investments can take a variety of forms and a good wealth manager will be able to help you determine the relative risks/returns of each investment.
you shouldn't do this with ALL of your money, just as much as you can afford to lose.
not everyone is comfortable with risk, though, which is why i said people should CONSIDER it. the higher the risk, the higher the potential return (and, of course, the higher the loss if you bottom out). higher risk investments can be "tamed" with more diversification too.
i started an account with a wealth manager when i was 22. it costs a bit of money but it's worth it.