Gordon Pape involved in the RRSP Businesses deal screw up to steal money from Canadians

48 Comments:

If youre earning 10k a year in dividend in your non registered account when youre 65 on top of your canada pension, this will affect the money the government pays you in your retirement years. The more money you earn, the less you will be eligible for certain programs. RRSP or not. Dont forget dividend income is grossed up at a rate of 1.41; so 10k in dividend would be recorded as revenue of 14,100 on your income tax.

Again I repeat, you can access your money anytime out of an RRSP; but why would you need to, you have lots of money available outside your RRSP.

As for banks making money. They do make money selling mutual funds, but if you buy individual stocks like you do, they dont make anymore whether its in an RRSP or outside an RRSP. If bank making money is a concern to you, you should look at the amount of interest your sending them every month.

As for an example where RRSP can be beneficial; lets say you owe $1,500 in tax this year. Instead of writing a check for $1,500 to the government you can invest in your case $4,400 in an RRSP and have the money grow and not have to pay a cent to the government until you decide to withdraw it. That seems like a no brainer to me, send 1,500 to the government or invest $4,400 in an RRSP and not owe the government nothing.

Yes, eventually, you will have to pay taxes. But the same is with your margin. You use margin to make more money and the more you make, the more you will have to pay in tax and you will also have to repay that margin eventually.

If you dont understand something, you shouldnt give false information to your readers. Did you forget last year, you borrowed money to invest in your RRSP. Remember BMO didnt want to give you the loan, didnt want to make all that money on you. Now that you have a change of mind about RRSP, you should be thanking BMO for not giving you money to invest in RRSP.

As for the readers, proof is here why you shouldnt take any information from Sunny, she flip flops all the time. But really, you didnt know you would have to pay tax on RRSP withdrawals. What world have you been living in?

The accountant

alrite sunny i wanna try this, going to really break it down although i thought the comments in your previous post summed it up quite well

when you contribute money into an rrsp the government gives you taxes back. you contribute these into the rrsp as well

now the government has made an unspoken deal with you,they are now going to allow you to invest your money in this account tax free.

when ever you are done the government is going to take back the money they gave you including any growth it made if invested properly. their cut.

leaving you with your cut. your after tax money that has been growing TAX free. And the 4 things you can actually control in investing, cost, asset allocation,diversification and how you are taxed.

Where people do lose is by spending the tax refund on big screen tvs or vacations rather than contribute the money into the rrsp, that money is not a gift or a break. the man will take it back.

Or early withdrawals or all of a sudden earning more money in retirement then you did during your entire working career.

This is a very simple explanation, i can add some numbers for examples if anyone wants

And yes i certainly simplified it and theres a little more too it but Im sure i got the gist of it

Sincerely

rich

been reading comments for months, first time poster!

alrite sunny i wanna try this, going to really break it down although i thought the comments in your previous post summed it up quite well

when you contribute money into an rrsp the government gives you taxes back. you contribute these into the rrsp as well

now the government has made an unspoken deal with you,they are now going to allow you to invest your money in this account tax free.

when ever you are done the government is going to take back the money they gave you including any growth it made if invested properly. their cut.

leaving you with your cut. your after tax money that has been growing TAX free. And the 4 things you can actually control in investing, cost, asset allocation,diversification and how you are taxed.

Where people do lose is by spending the tax refund on big screen tvs or vacations rather than contribute the money into the rrsp, that money is not a gift or a break. the man will take it back.

Or early withdrawals or all of a sudden earning more money in retirement then you did during your entire working career.

This is a very simple explanation, i can add some numbers for examples if anyone wants

And yes i certainly simplified it and theres a little more too it but Im sure i got the gist of it

Sincerely

rich

been reading comments for months, first time poster!

Welcome in the readers club, dont be shy. you are going to have a lot of fun here, youll see