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Taxes (pg. 4)
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| Skipper |
| But if you have a business, you're not really retired, are you? |
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| MarkT |
| quote: | Originally posted by Skipper
But if you have a business, you're not really retired, are you? |
If you kick back with a marguerita on a beach in Mexico while some poor fool is running it here, you sure are! :D LOL |
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| Fir3start3r |
RRSPs are ok, but the return SUCKS...and it's an extremely crappy ROI (Return On Investment).
What banks don't tell you is that but the time you retire, if you want to have say, a $4000/month income until your average death age, you'll have to squirel away $1.4 Million (yes, Million)
So....how's that saving going?
Tax laws in this country are built for businesses...so, start yourself a part time business and take advantage...;) |
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| rabbitjoker |
| quote: | Originally posted by Fir3start3r
RRSPs are ok, but the return SUCKS...and it's an extremely crappy ROI (Return On Investment). |
Dood. I think you're confused.
The return on your RRSP is dependent on the type of investment you put your RRSP funds into. You can own stocks, bonds, paper, property, mortgages and comodities in your RRSP (just as you can in any investment account).
You don't get a fixed % return on RRSPs. You put money into an RSP - then you invest that money (considered to be an investment within your RSP). That money can be invested just like money outside your RSP (taking into account foreign ownership restrictions of 30% of your total RSP).
I've turned 28% on my RRSP in 2003. Why? Because I bought some index tracking stocks back in late 2002 - and 2003 was a great year for ALL North American indexes.
So - your statement above makes no sense. If you're getting a crappy return in your RSP - you've bought the wrong investments.
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On a side note:
Learn the "Time value of money" - it the basis of all finance.
Learn the "Law of 72": Divide 72 into the interest
rate to find out how many years it will take to double your money. |
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| drgoodvibe |
| quote: | Originally posted by Fir3start3r
RRSPs are ok, but the return SUCKS...and it's an extremely crappy ROI (Return On Investment).
What banks don't tell you is that but the time you retire, if you want to have say, a $4000/month income until your average death age, you'll have to squirel away $1.4 Million (yes, Million)
So....how's that saving going?
Tax laws in this country are built for businesses...so, start yourself a part time business and take advantage...;) |
couldnt agree more.. |
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| Skipper |
after working your ENTIRE LIFE, aren't you going to be tired of working by age 65??
Anyone who does not save for retirement is an idiot. The tools are out there, the information is available, and it doesn't have to cost you a fortune.
When you are working b/c you haven't got a penny in savings, I will point, and laugh. Heartily! |
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| Fir3start3r |
Good job man!
(Of course you'll still be paying taxes come retirement time when you're forced to start drawing on those RRSPs.)
Paper assets are nice to have but not as stable (Nortel) as other investments like Real Estate (which you eluded to).
I invite everyone to read "Rich Dad's Prophecy - Robert T. Kiyosaki"
Actually, I suggest reading his whole series of books, they're amazing in that they teach people things that really should be taught in school - basic financial intelligence for people like you and me.
Oh yea...never mentioned I had RRSPs ;)
While the masses are convinced that RRSPs/RSPs are the ticket to their retirement (cause that's what we're told) that's not entirely true. While it may work for some, statistically the numbers just don't add up.
At age 65:
45% are financially dependant on relative
30% live on charity
23% still work
2% are self-sustaining in retirement
Those numbers aren't there is scare anyone, these are cold facts.
Everyone here is young enough and knows that things are different these days than even from the days of our parents.
NOW is the time is start educationing yourself about finances and not to get stuck in the same ruts that we see in people only a generation before us.
Just be careful who you get your advice from. Do they have what you want? Do they talk the talk AND walk the walk? Are they where you want to be in the next 10-15-20 years?
Hard questions but never premature ones because you can never start too late or too soon in educuating yourself; cause you're only going to be doing it for the rest of your life anyways!
As for the book "Law of 72", I have been wanting to read that. Amazing stuff that compound interest...(as long as it works FOR you and not the bank...) :p
| quote: | Originally posted by rabbitjoker
Dood. I think you're confused.
The return on your RRSP is dependent on the type of investment you put your RRSP funds into. You can own stocks, bonds, paper, property, mortgages and comodities in your RRSP (just as you can in any investment account).
You don't get a fixed % return on RRSPs. You put money into an RSP - then you invest that money (considered to be an investment within your RSP). That money can be invested just like money outside your RSP (taking into account foreign ownership restrictions of 30% of your total RSP).
I've turned 28% on my RRSP in 2003. Why? Because I bought some index tracking stocks back in late 2002 - and 2003 was a great year for ALL North American indexes.
So - your statement above makes no sense. If you're getting a crappy return in your RSP - you've bought the wrong investments.
-----------
On a side note:
Learn the "Time value of money" - it the basis of all finance.
Learn the "Law of 72": Divide 72 into the interest
rate to find out how many years it will take to double your money. |
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| Mosaic |
just curious:
any high school students besides me filing returns? |
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| rabbitjoker |
| quote: | Originally posted by Fir3start3r
(Of course you'll still be paying taxes come retirement time when you're forced to start drawing on those RRSPs.) |
Dood. Tell me then how I can grow my money (tax deferred) until I retire in a more effective manner than RRSPs??
The point with RRSPs is this:
Your tax bracket today (or soon) will be much higher than your tax bracket in retirement:
i.e.: If you make $100k+ today you'll paying at least 47% tax. When you retire your house and expenses will be paid off and thus your requirement for income will be much less - and thus your tax bracket will be lower.
Thus today you'll get a bigger bang from contributing to your RSP - since you'll be paying less taxes later.
There is not a more effective means of preparing for retirement than an RSP.
You don't have to trust me on this - but do the math. Taxes are only going down over time, RRSP contribution allowance is only going up, and your income requirement will be lower with age.
Show me the math that NOT contributing to an RSP makes more sense than not.
| quote: | | NOW is the time is start educationing yourself about finances and not to get stuck in the same ruts that we see in people only a generation before us. |
Oh, and I've bought and read "rich dad, poor dad". Concepts are good - but the advice is 100,000 foot view on something that needs a 1000 foot view.
You can invest on a 100,000 foot view - but I'm interested in making money (which requires a 1000 foot view).
I agree about the educating of yourself about your finances - but some "get rich, simple science" book isn't going to do it. |
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| Crazy Serb |
| quote: | Originally posted by Skipper
why would you say that? |
because RRSPs are just fraud... legal fraud. The government encourages you to contribute to your RRSPs with the catch that the money you contribute will not be taxed, etc, etc. But when you take it all out, it's counted towards your income and if you've got like $100,000 in RRSP savings you'd end up giving half of that back to government in taxes. Now, that sounds like a fraud to me... can you prove me wrong?
Unless you know how to take out that money tax free and invest it in business, declare it as a business expense and play the game in your advantage, you're getting raped up the ass, like our poor rabitjoker here working half of his time for the gov't.
| quote: | Originaly posted by rabbitjoker
Taxes are only going down over time...
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You seriously think so? Oh man...
| quote: | Originally posted by Fir3start3r
Tax laws in this country are built for businesses...so, start yourself a part time business and take advantage...;) |
Word up!!!
| quote: | Originally posted by MarkT
If you kick back with a marguerita on a beach in Mexico while some poor fool is running it here, you sure are! :D LOL |
That's what I'm talking about...
Anyone who's read the "Rich Dad, Poor Dad" series would realize what is wrong with working for someone else even when getting paid in 6 figures... even the guy that does my taxes, one of the handfull of people in this country that actually knows the law inside out and knows how to play the game pays almost nothing in taxes, but earns 6 digits, has a few businesses running, hasn't filed a tax return for himself as an individual (rather as a business) in years now, and is totally against RRSPs (unless the person contributing the $$$ knows how to take it out tax free).
So whatever RJ is doing is a good thing to save money, but definitely not the best thing... |
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| richard raiban |
^^^
this motha focka is CRAAAAAAAAAAAAAZY!!! |
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| Crazy Serb |
| quote: | Originally posted by richard raiban
^^^
this motha focka is CRAAAAAAAAAAAAAZY!!! |
you think so? ;) |
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