tag:blogger.com,1999:blog-6818486532233792196.post5761072524840757253..comments2024-03-18T14:35:45.389-04:00Comments on The Dividend Girl: Those days, Canadian investors are being treat well by the TSX - and that include ME Sunnyhttp://www.blogger.com/profile/10439081666297874311noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-6818486532233792196.post-73947564253116161872020-01-30T23:06:59.504-05:002020-01-30T23:06:59.504-05:00Hi Anonymous, I wasn't responding to your comm...Hi Anonymous, I wasn't responding to your comment, but to Dividend Girl's post and what might be her situation, which may not involve having a lower tax bracket in retirement.fredericnoreply@blogger.comtag:blogger.com,1999:blog-6818486532233792196.post-52451886380396083792020-01-29T20:19:20.580-05:002020-01-29T20:19:20.580-05:00Frederic, I am the writer of the first poster....w...Frederic, I am the writer of the first poster....when I say modest income...I meant modest income during retirement....I am planning to retire at 55, my income then, will be from my RRSP and a deferred pension plan....my estimated income during retirement will be apx $37000/year which is modest....as my tax bracket will be much lower then than what it is now. <br />Cheers,<br />CarolAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-6818486532233792196.post-76370818900407039282020-01-28T11:02:13.689-05:002020-01-28T11:02:13.689-05:00I'm not surprised that the RRSP paragraph ende...I'm not surprised that the RRSP paragraph ended up being controversial.<br /><br />It's not "a trick that the government came with to make even more money " but it's a way for the middle class to have more money at retirement by investing money now before tax, and paying taxes on the money and its profit when they are in a lower tax bracket. <br /><br />That said, for people with a modest income (less than 40,000$ a year), contributing to RRSP is not advantagous. It's well documented out there why, here is just one link on the subject :<br />https://business.financialpost.com/personal-finance/retirement/rrsp/tfsas-may-be-a-better-than-rrsps-for-many-types-of-savers-financial-experts-sayfredericnoreply@blogger.comtag:blogger.com,1999:blog-6818486532233792196.post-69072709037110173302020-01-27T21:03:53.276-05:002020-01-27T21:03:53.276-05:00There is nothing evil or conspiracy investing insi...There is nothing evil or conspiracy investing inside an RRSP. Basically a RRSP is a deferred tax savings account, which you are right that the government will tax you when you withdraw the amount more than what you are mandated to based on your age and that income is added to your overall income. But you would withdraw it as you are close to retirement, which should reflect your lower income bracket. You can collapse an RRSP organically by withdrawing the minimum amount (2.5%) when you're in your 50s while adding to your basic income. Any leftovers you can then place it inside your TFSA until you are mandated to turn your RRSP to a RRIF when you hit 70 if my memory serves me correct. Like the first poster had said, you can retire early and collapse your RRSP by living the income off it. Once you hit age 65, you can then apply for CPP, OAS and GIS which then becomes part of that income source your RRSP used to provide. The unused portion of the RRSP during the decade of being collapsed can then be invested inside the TFSA, thus reducing your tax profile allowing you to receive the maximum OAS and GIS payment that you deserve. Collapsing RRSP is a common tactic for many people who have a sizeable RRSP and I plan to do so when I hit the age of 55.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6818486532233792196.post-69092427017835519392020-01-24T21:36:05.411-05:002020-01-24T21:36:05.411-05:00DG, RRSP is a great investment vehicle for early r...DG, RRSP is a great investment vehicle for early retirees ( before age 60) with a modest income and minimum debt. I plan to retire at age 55....live off my RRSP income until age 65.Anonymousnoreply@blogger.com