RRSP/Retirement savings etc
Mar 2nd 2014, 12:39 am
#16
Grumpy Know-it-all
Joined: Jul 2010
Location: Calgary, Alberta
Posts: 8,928
Re: RRSP/Retirement savings etc
Once in the market for mutual funds keep an eye on management expense ratios that can eat into whatever gains the fund makes. A well managed fund may increase in value more than one that just follows the market, but the gains may be obliterated by the management expenses. I do get the feeling that a lot of professional advisers are often interested only in making a sale, so its worth spending some time figuring out how to judge these funds for yourself and assesing your objectives with respect to security, time scales and expectations. Ultimately its kind of a crap shoot anyway. Best to take a long term view on returns and try not to stress over short term market fluctuations.
Does anyone actually use GICs in an RRSP? Wow. I was really scared to read that only 25% of earning people have an RRSP and to think some of them are only in crappy things like GICs is even more scary. Take something less liquid and make it almost completely illiquid and earn hardly any interest at the same time!
Given that the OP is American and presumably has some US dollars I would recommend US investments in an RRSP, TFSA doesn't makes sense as previously explained.
Mar 2nd 2014, 3:59 am
#17
BE Forum Addict
Joined: Apr 2005
Location: Saskatoon, Saskatchewan
Posts: 4,104
Re: RRSP/Retirement savings etc
In fact, I think the free RRSP I get at work was worth less after three years than the amount they'd paid into it.
Mar 2nd 2014, 11:54 am
#18
Professional Cat herder
Joined: Apr 2007
Location: TORONTO- yay!!!
Posts: 5,707
Re: RRSP/Retirement savings etc
It worked as far as I can tell.
As far as my work stuff goes , my company match my contributions, so i'd be stupid not to pay into it. Despite this there are many of my colleagues who don't
Mar 2nd 2014, 12:24 pm
#19
Account Closed
Thread Starter
Joined: Jan 2006
Posts: 0
Re: RRSP/Retirement savings etc
Had I been smart when I was at the airline, I'd have opened a 401k and took advantage of the companies dollar for dollar match (they matched dollar for dollar up to 4,000 a year I think it was.)
But being 19 when I started, and being the wage they paid was 6.94/hr, I never thought I had the money to do so, but I should have found a way.
At times I forget I am even from the US...lol.. But then the IRS reminds me...
Mar 2nd 2014, 6:17 pm
#20
Binned by Muderators
Joined: Jul 2007
Location: White Rock BC
Posts: 11,682
Re: RRSP/Retirement savings etc
There is a role for interest producing assets in a TFSA. Interest is taxed at a higher rate than either dividends or capital gains so it makes sense to have the fixed income part of your portfolio in a tax-sheltered environment.
If this is also your emergency fund you need to keep it liquid. ING is currently offering a whole 1.4% on accessible TFSA deposits. This is roughly 2.3% outside a TFSA.
If this is also your emergency fund you need to keep it liquid. ING is currently offering a whole 1.4% on accessible TFSA deposits. This is roughly 2.3% outside a TFSA.
