This might be the most asked personal finance question in Canada, should you contribute to an RRSP or pay down your mortgage? Most people would lean towards putting money into an RRSP because of the tax credit and the possibility of a higher return. When considering the tax benefits of the RRSP option, some people…
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Category Archives: RRSP
Use Your Raise To Increase Your Savings
A common reason given for not saving or investing is that there is no available money after all the bills and expenses are paid. By simply increasing your savings by the amount of your raises, you can quickly build up a nest egg without noticing any change in your lifestyle or spending habits. Since your…
Withholding Tax on RRSP Withdrawals
Earlier this week, when discussing withdrawing RRSPs before retirement, I mentioned withholding tax but never went into detail. Withholding tax is the amount that the bank is required to submit to the CRA on your behalf. Since withdrawn RRSPs are considered income in that year, the withholding tax is similar to your employer withholding a…
Withdrawing RRSPs Before Retirement
Yesterday I discussed the Lifelong Learning Plan, were you can withdraw money from your RRSP for educational purposes. What if you need to withdraw more money from you RRSP to go back to school? What if you wanted to supplement a maternity leave with money that is in your RRSP? Or in the case of…
Lifelong Learning Plan (LLP)
The Lifelong Learning Plan is a government program that allows you to withdraw money from your RRSPs for education without any tax being withheld. This could be either for you, or your spouse or common-law partner. To qualify for this, you must be enrolled as a full-time student in a educational program at a designated educational…
How To Setup and Rebalance TD e-Series Funds
There is a bit of effort you need to put in to invest in TD e-Series Funds, but it is worth it. First of all, you need to apply using the pdf available on the TD Canada Trust website. The Account Application is pretty straightforward. You’ll need to provide information like your name, SIN, date…
TD e-Series Funds
TD e-Series Funds may be the simplest way for someone to invest in a diversified portfolio with low Management Expense Ratios (MERs). Below are the four funds that you can use to build a rather complete portfolio and would work well for regular contributions into an RRSP or RESP. TD Canadian Bond Index tracks the…
