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Money Problems (pg. 4)
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| starsearcher |
| clubbing IS expensive which is why I haven't been out much lately...saving saving saving...LoL would be my first party in a WHILE! |
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| split2th |
| quote: | Originally posted by Beach420
i hate money...but then of course im forced to love it at the same time. Money causes so many problems in this world. The only thing that keeps me from not spending a load of money when i go out is to only bring the amount of money out i wanna spend, and leave the debit card at home! dam those ATMs with the $2.50 charge!! |
Briliance...
I do the exact same thing. it's so easy to spend money and not have a clue how much you're spending. especially when you're messed up and having a wicked time. |
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| split2th |
| quote: | Originally posted by Jem_hadar
5,000-7,000$ IS NOTHING for school debt, TRUST ME.
If that's all you have, you have it MADE IN THE SHADE beyond BELIEF!
5,000$ is a kick in the bucket, I wish I had such little debt. Don't ing get down on yourself if you ing have only 7,000$ worth of debt after university -- you should ing thank the universe for your good fortune! ;)
-jem- |
lol, i'm at about 16 grand. the funny thing is that most people i talk to are like double that, that sucks. |
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| starsearcher |
| quote: | Originally posted by split2th
lol, i'm at about 16 grand. the funny thing is that most people i talk to are like double that, that sucks. |
Thank goodness I'm clear so far :nervous: no debt |
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| cap |
I could have remained debt free, but that would have meant another year of living at home.
My parents are cool and all , but it's time for me to spread my wings.
Plus, I found a great(but pricey) place at Bloor/Spadina. |
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| The Highroller |
| What are the advantages and disadvantages of putting your savings into an RRSP or into a mutual fund at a young age (~20 years old)? |
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| Skipper |
| quote: | Originally posted by The Highroller
What are the advantages and disadvantages of putting your savings into an RRSP or into a mutual fund at a young age (~20 years old)? |
vs doing what? blowing it on booze, drugs and hookers or...?
It's always ALWAYS a good idea to start your RRSP at a young age. |
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| The Highroller |
| quote: | Originally posted by Skipper
vs doing what? blowing it on booze, drugs and hookers or...?
It's always ALWAYS a good idea to start your RRSP at a young age. |
Lol, booze, drugs and hookers are already accounted for. ;)
What I meant was: What are the advantages/disadvantages of putting your savings in an RRSP over a mutual fund, and what are the advantages/disadvantages of putting your savings in a mutual fund over an RRSP at the age of 20? |
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| house_conXion |
| Seriously I think I'm really allergic to money, seems that whenever I have some I'm just itching to get rid of it one way or another. It sucks living from paycheque to paycheque and I don't even go out that much anymore. Slowly by slowly I'm clearing myself of all debts (school, cc, etc) and wanting to build a base so I could start saving for something good like a car or a vacation. |
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| AwakenedAddict |
| quote: | Originally posted by The Highroller
What are the advantages and disadvantages of putting your savings into an RRSP or into a mutual fund at a young age (~20 years old)? |
Well at that point in time you are probably in the lowest tax bracket (ie paying no taxes). I don't know what it's called in Canada, but in the states I opened what is called a "Roth IRA" (IRA = RRSP, btw). In a Roth IRA you don't deduct your yearly contributions from your income, you instead pay taxes on them that year. But remember, you are in the lowest tax bracket at that time, so you aren't really paying any taxes on that money at all. The beauty of a Roth IRA is that the money is UNTAXABLE when you withdraw it, even your profits from the investment (capital gains, disbursements, etc.).
So you end up paying no taxes on your investment and on your gains, pretty sweet deal! Downside is that you can't withdraw the money until you are 65, but that gives the money a good and long time to compound (average stock market gains in the US are about 10% annualized over a long period of time, 10+ years). Rule of 72 means that at a 10% annualized gain, you are doubling your money roughly every seven years. So between the age of 20 and 65 (45 years) your money will on average double itself over 6 times. With an investment of $1000, that becomes around $64,000 by the time you are 65. TAX FREE.
Of course this is with a constant investment portfolio comprised of investments that mimmik the economy as a whole, like an index-fund. If you micromanage your portfoloio, results will vary (for better or worse). |
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| DigiNut |
| quote: | Originally posted by The Highroller
What I meant was: What are the advantages/disadvantages of putting your savings in an RRSP over a mutual fund, and what are the advantages/disadvantages of putting your savings in a mutual fund over an RRSP at the age of 20? |
Graham, you can put it into an RRSP *and* a mutual fund, just get a self-directed RRSP.
The only real difference is that an RRSP is tax-sheltered (you have to pay tax when you collapse it, but if you're not going to spend that money now then why pay taxes on it now?). It also just makes it easier to budget - if you ever have to make a "withdrawal", you know you're overspending!
| quote: | Originally posted by AwakenedAddict
Downside is that you can't withdraw the money until you are 65 |
That's only for locked-in RRSPs, I don't think every RRSP is locked-in. But that is generally true, yes. |
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| ghetto_fab |
| RRSP are awesome to have with my RRsp last year I got a tax return of 950$ I would totally reccomend getting them and its locked away for time to retire. the trick is the money you get back from your RRSP just put it right back in and you wont have to worry about putting anymore in for the year..... cash it when you get old and you will have a nice car like most old people haha |
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