I have maxxed out my TFSA (tax-free saving account for Canadians) and I still have like 50k in my chequing. I want investment options where I get free money and I don't pay the government. I have a RDSP account but I can't still understand the 10 year limit nor can I understand why people have RRSP's. Less risky options btw
>>62102733I don't trust any bank manager or any wealth advisor because I think most of em are trynna scam me and they show repulsive facial cues when I ask them questions thinking I am dumb. I just want to earn money and extreme benefit outta money I have.
Look at and fully understand the tax rates and tax bracket table for your province at taxtips.ca. You will probably see NEGATIVE tax rates for eligible dividends for certain income brackets - eg for Ontario below $58k income, your eligible dividend income is taxed at a negative rate. There are ETF products designed to pay you income of that type, though they are usually comatose boomer investments that won't grow much over time.That being said, nothing beats capital gains for low taxes. Volatile, high growth stuff will get you capital gains over time and you will be living like a Laurentian Elite paying very little taxes on passive income.Also underrated:> paying off debt> RRSP contributions when you have high employment income> making side money flipping stuff in the cash economy and forgetting to claim it on your taxes> having kids and getting the child care tax benefit
>>62102763>> making side money flipping stuff in the cash economy and forgetting to claim it on your taxeshow do I get into this?
>>62102733>I have a RDSP account
>>62102763>debtsI don't have much>rrspCan you explain this? Like isn't the gains taxed? And I heard, this is just for ppl who want their money after 70>kidsNo>cashHow do I do this?
>>62102790Gains are not taxed, but what you take out of RRSPs after it has grown is taxed. The benefit is that its in the future and you can choose your income bracket if you're in control of your lifestyle. If you're planning for financial independence, you can start bleeding down your RRSP in an efficient way in the years your aren't employed. Meanwhile its pre-tax money that's invested and growing.If you're making 200k, you'd be stupid not to use RRSP to shift that income to a later year. If you're making 50k, it doesn't really make a huge difference and using the TFSA first is a good idea.> cashdunno - depends on what you're interested in and good at. Go to garage sales in boomer neighborhoods and lowball stuff that can be easily sold on Facebook/Kijij/etc. If you know cars, lowball badly listed dirty cars, clean them up and re-sell them.
>>62102790Stay away from RRSPs, I accidentally put a bunch of money into it and then I took it out and that was a taxable invent which costed me 30k. I got the money back eventually but it was locked away for like 4+ months before government corrected the over payment in taxes
>>62102733Sell covered calls on your stocks in your TFSA.
>>62102826>Stay away from RRSPsholy retarded. how did you manage to fuck up that badly? did you mean to send the money to a different account?dont tell people to stay away from rrsp just cause you made a mistake. if youre a high income earner you can write off a all your contributions and maybe get a nice refund. your gains are tax free within the account and your withdrawls are counted as income. if you lose your job and you dont have any income for the year, you can withdraw from your account and you wont pay much tax. if you finished filling up your tfsa and your fhsa you probably have a decent income, so you should definitely start making contributions. it is ideal to wait until you have a higher income, but keeping your money in a checking account is the worst option.
>>62102733>nor can I understand why people have RRSP'sUsually tax-deferred income for when you're retired, and your income becomes lower so you don't have to worry about the gains
>>62102874Yah but what if i die by the age 35?
>>62102733If your tax bracket is high then put as much income as you can into RRSP to get that 50% tax back. RRSP only becomes a problem to deal with if you die. Retire early and draw down the RRSP when you have no income.The best way to not pay the government is to leave this god forsaken place.
>>62102888you can still withdraw it, you just have to be strategic about it. keeping 50k in your checking account is giga retarded. youre getting raped by inflation. if you have taxable income for the year and you have money sitting in your checking account you should consider making contributions so you pay less tax. if your income tax is withheld by your employer you may even get a refund. I got 10k this year. if you know exactly how much youre going to be contributing for the year you can request to reduce your tax at the source by sending some forms to the cra and less tax will be taken off of your paycheck
>>62102739FUCK anyone who works at a bank. Seriously.
>>62102733Do you own a property? If you never bought one you can put money in fhsa, which works like an RRSP but when you buy your first property you can use this money. With property prices actually going down it's a good opportunity to buy.
>>62103032I invested money in the mortgage and paid off my parents house that I live in. >prices are decreasingLike wat? From a houss costing 1m to 800k? Lmao
>>62103038Yes? That's 20% no?
>>62102733RRSP’s are a bet that your ordinary income tax level will be lower in retirement than it is now. This is something you can calculate if you want to try to plan your income level and tax strategy when you retire.
You can use contributions to:RRSPRESPFHSATo reduce your taxes and get more money back.
>>62103038Is your name on the title of the house officially or are you just using a convoluted way of saying your parents, whose house you live in, charge you rent. If you have never been on a mortgage, or have never bought a home in your name for the first time, you have access to an FHSA.
>>62103063I am on the title
Look into flow-through shares if you're looking for tax write offs. You can't use tax advantage accounts for this strategy. Also use your line of credit to invest in yield producing assets. The interest is deductible and you pocket the difference. Little more risky since you're exposed to interest rate fluctuations but still worth it if you don't have real responsibilities like kids. Once again, can't be in a tax advantage account.
>>62102739yeah don't fuck with banks or "wealth managers", they're there to fuck you over
>>62102848> holy retarded. how did you manage to fuck up that badly? did you mean to send the money to a different account?Yep. I have my RRSP hidden now so I don’t make that mistake again
>>62102733>I have a RDSP accountAre you scamming the system or are you actually profoundly disabled?
>>62103090>Also use your line of credit to invest in yield producing assets.Wdym by this?
>>62102823>depends on what you're interested in and good at. Go to garage sales in boomer neighborhoods and lowball stuff that can be easily sold on Facebook/Kijij/etc. If you know cars, lowball badly listed dirty cars, clean them up and re-sell them.What if nobody buys my stuff?
>>62103616If you use a LoC to buy a stock that gives a dividend. The interest you pay is tax deductible.
>>62103741But what if the interest is higher then the profit? What if my stocks collapse? And by line of credit you mean just borrowing money from my credit cards or borrow new loans? Which options do I have
>>62103827Do not borrow money to buy stocks for fucks sakes. He doesn't understand what tfsa and rrsp are. Read 2-3 books first, buy either vfv or voo / qqq or qld for long term. Keep buying until you die, fuck off
I have tfsa maxed, rrsp maxed, resp for kids, corporate cash account where I invest all surplus $ in the company and a personal cash account. Between all accounts I hold TQQQ.TO mostly. Tax is a fucking bitch but it beats keeping cash
>>62103836I Normally would agree but
>>62103836>Do not borrow money to buy stocks for fucks sakesThen what does LOC mean?
>>62103616I'm nta but I took a LoC to do options wheels strategy on stocks I don't mind holding long-term because you need a lot of capital to do this. Let's see how this goes.
>>62102823>Gains are not taxed, but what you take out of RRSPs after it has grown is taxed.Doesn't that literally mean the same thing? Why do guys in finance use semantics like this. No wonder kikes and rich people lie alot. Well if 'x' isn't taxes initally, its gonna be taxxed later on, so basically its the same stuff. You get 'taxed'. I hated finance because of this
>buy gold, silver, platinum with cash>sell gold, silver, platinum for cashMy grandfather just sold five ounces he bought twenty years ago to another boomer over Facebook market place. No paper trail. (Inb4 faceberg monitors/saves chats)
>>62103938Yah but ppl suspect you're a fraud
>>62103929ya gotta find your kike mindset and stop dumb goyingIt WILL NOT be taxed if your realized income out of your RRSP is KEPT LOW in a future year. It will be taxed a lot if you take a lot of realized income out of your RRSP. It's designed to shift income from your high earning years to your low earning years. That's why it's called tax planning, because you have to plan. Also, you can trade between assets in a RRSP without it being a taxable event.Capital gains is different. Every time you sell in a naked account, that's a taxable event and it makes it harder to plan, especially with volatile assets.If corn ETF moons 100x in your RRSP, you sell and re-invest in whatever, no tax consequences until you withdraw which you have a lot of control over.If corn ETF moons 100x in a regular account, you owe capital gains the moment you sell, which is a big cheque for Mr. Carney
>>62103644then you are a shitty businessman and you should claim your capital losses against your income
>>62102763>comatose boomer investmentsVDY has been outperforming VFV for five years now, ESPECIALLY in the past year now that the American economy has gone full insano-mode investing in pre-crime policing and chat bots:https://stockanalysis.com/etf/compare/tsx:vdy-vs-tsx:vfv/
I think I paid just under 100k in income tax and now have to pay 4k more :( could put some in rrsp but it just feels likea fucking scam so i dont, im using that shit now not in 50 years
>>62102823What I do is I put slightly larger tires on my car that way you can easily reduce the odometer reading by 10-15%.
Look OP, you're obviously a little bit retarded but I've been there too. RRSP seems like a scam when you're a poorfag making poverty wages but trust me, when you're making big money it help a LOT to keep money in your pocket and not being shoveled into the black hole of a medical system.
>>62102739Those clowns are just salesmen for the bank's funds. The funds themself have retarded fees, and they take commission too. They absolutely rape any profit you make, and they have zero incentive to actually make you a profit because they make money either way. Total scam. Just open a brokerage account and invest in diversified ETFs like VTI, VOO.
