Comments on: RRSP Implementation http://blog.johnath.com/2006/02/18/rrsp-implementation/ johnath in blog form Thu, 26 Jan 2012 13:11:15 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: apparlNes http://blog.johnath.com/2006/02/18/rrsp-implementation/comment-page-1/#comment-64116 apparlNes Fri, 10 Aug 2007 14:09:21 +0000 http://blog.johnath.com/index.php/2006/02/18/rrsp-implementation/#comment-64116 Very useful and informative blog. Recommended for all to see. http://medsdrugs.blogspot.com/ Very useful and informative blog. Recommended for all to see.
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]]> By: Betty http://blog.johnath.com/2006/02/18/rrsp-implementation/comment-page-1/#comment-1041 Betty Wed, 17 May 2006 09:34:57 +0000 http://blog.johnath.com/index.php/2006/02/18/rrsp-implementation/#comment-1041 My husband put an RRSP into his own name and said that I put it in for him, then he took it out this year without me knowing it and I was taxed on this. Is this legal? I was not aware of him doing this. My husband put an RRSP into his own name and said that I put it in for him, then he took it out this year without me knowing it and I was taxed on this. Is this legal? I was not aware of him doing this.

]]> By: Administrator http://blog.johnath.com/2006/02/18/rrsp-implementation/comment-page-1/#comment-454 Administrator Sun, 19 Feb 2006 16:16:15 +0000 http://blog.johnath.com/index.php/2006/02/18/rrsp-implementation/#comment-454 The idea of 10% is 10% of gross, but I deliberately left it vague so that people who need to give themselves permission to contribute a little less can do 10% of after tax instead. If you're paying about 30% tax, then 10% of net is about 7% of gross -- if you then take your tax deduction and roll that into your RRSP as well, you get up to about 9% of gross, and then you're most of the way to 10% anyhow. :) As for big initial deposits, you don't need one. You can start today, depositing the cash, and depending on the brokerage you're with, they might even give you a few points of interest anyhow. Most index funds require relatively small entry purchases, $500 for some, $1000 for others, but once you hold a given fund, you can make "top-up" purchases for as little as $100. And since index funds are no-load, there is no commission or transaction cost for doing this. The idea of 10% is 10% of gross, but I deliberately left it vague so that people who need to give themselves permission to contribute a little less can do 10% of after tax instead. If you’re paying about 30% tax, then 10% of net is about 7% of gross — if you then take your tax deduction and roll that into your RRSP as well, you get up to about 9% of gross, and then you’re most of the way to 10% anyhow. :)

As for big initial deposits, you don’t need one. You can start today, depositing the cash, and depending on the brokerage you’re with, they might even give you a few points of interest anyhow. Most index funds require relatively small entry purchases, $500 for some, $1000 for others, but once you hold a given fund, you can make “top-up” purchases for as little as $100. And since index funds are no-load, there is no commission or transaction cost for doing this.

]]> By: Lisa http://blog.johnath.com/2006/02/18/rrsp-implementation/comment-page-1/#comment-453 Lisa Sun, 19 Feb 2006 16:06:01 +0000 http://blog.johnath.com/index.php/2006/02/18/rrsp-implementation/#comment-453 You are a wonderful man and I love you dearly. You are also a lifesaver. Of course, that's been true for years, but all your recent posts about financial managment cause it to bear repeating. ^_^ So I have two questions. When people talk about 10% of your income, are they talking about income before or after taxes? I'm assuming before, but I wanted to make sure. Also, knowing how much to invest each month is great, but do you need a bigger deposit to start with? It doesn't seem likely that I'd be able to buy much in the way of index funds in my first month out, especially if I'm trying to get them in a ratio like that. Would it be better to stick it in one of the boring account RRSPs for a year until there's actually a decent amount of money in it first? You are a wonderful man and I love you dearly. You are also a lifesaver.

Of course, that’s been true for years, but all your recent posts about financial managment cause it to bear repeating. ^_^

So I have two questions. When people talk about 10% of your income, are they talking about income before or after taxes? I’m assuming before, but I wanted to make sure.

Also, knowing how much to invest each month is great, but do you need a bigger deposit to start with? It doesn’t seem likely that I’d be able to buy much in the way of index funds in my first month out, especially if I’m trying to get them in a ratio like that. Would it be better to stick it in one of the boring account RRSPs for a year until there’s actually a decent amount of money in it first?

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