Comments on: RRSPs for Younger Investors http://www.four-pillars.ca/2008/04/17/rrsps-for-younger-investors/ Investing and Personal Finance Thu, 18 Mar 2010 20:39:24 -0400 http://wordpress.org/?v=2.9.2 hourly 1 By: A Lap Of The Blogs : WhereDoesAllMyMoneyGo.com http://www.four-pillars.ca/2008/04/17/rrsps-for-younger-investors/comment-page-1/#comment-6606 A Lap Of The Blogs : WhereDoesAllMyMoneyGo.com Sat, 21 Jun 2008 15:29:24 +0000 http://www.four-pillars.ca/2008/04/17/rrsps-for-younger-investors/#comment-6606 [...] I helped contribute to a post on The Quest For Four Pillars about RRSPs for Younger Investors. [...] [...] I helped contribute to a post on The Quest For Four Pillars about RRSPs for Younger Investors. [...]

]]> By: Four Pillars http://www.four-pillars.ca/2008/04/17/rrsps-for-younger-investors/comment-page-1/#comment-6223 Four Pillars Fri, 30 May 2008 04:10:24 +0000 http://www.four-pillars.ca/2008/04/17/rrsps-for-younger-investors/#comment-6223 Monty - as far as I know, you can write off all of your student loan. Yes, you get the tax rebate when you file your taxes. Mike Monty – as far as I know, you can write off all of your student loan.

Yes, you get the tax rebate when you file your taxes.

Mike

]]> By: Monty http://www.four-pillars.ca/2008/04/17/rrsps-for-younger-investors/comment-page-1/#comment-6183 Monty Wed, 28 May 2008 12:48:14 +0000 http://www.four-pillars.ca/2008/04/17/rrsps-for-younger-investors/#comment-6183 This link also gives me the impression that the interest is refunded when you file your taxes. "You may be eligible to claim most of the interest paid on your loan in 2007 and/or the preceding 5 years if you received it under: -the Canada Student Loans Act; -the Canada Student Financial Assistance Act; or -a similar provincial or territorial government laws for post-secondary education. " http://www.cra-arc.gc.ca/tax/individuals/topics/income-tax/return/completing/deductions/lines300-350/319-e.html This link also gives me the impression that the interest is refunded when you file your taxes.

“You may be eligible to claim most of the interest paid on your loan in 2007 and/or the preceding 5 years if you received it under:
-the Canada Student Loans Act;
-the Canada Student Financial Assistance Act; or
-a similar provincial or territorial government laws for post-secondary education. ”

http://www.cra-arc.gc.ca/tax/individuals/topics/income-tax/return/completing/deductions/lines300-350/319-e.html

]]> By: Monty http://www.four-pillars.ca/2008/04/17/rrsps-for-younger-investors/comment-page-1/#comment-6182 Monty Wed, 28 May 2008 12:37:12 +0000 http://www.four-pillars.ca/2008/04/17/rrsps-for-younger-investors/#comment-6182 I'm a little confused about what percentage of OSAP interest is tax-deductable. In the analysis it seems that tax-deductions made the 8% interest on the loan reduce to 6.32%. That doesn't seem like much at all. As is my understanding, in the US 100% of student loan interest is tax-deductable, if you earn below a certain amount (something like $50,000). Is this not the case in Canada? I’m a little confused about what percentage of OSAP interest is tax-deductable. In the analysis it seems that tax-deductions made the 8% interest on the loan reduce to 6.32%. That doesn’t seem like much at all.

As is my understanding, in the US 100% of student loan interest is tax-deductable, if you earn below a certain amount (something like $50,000). Is this not the case in Canada?

]]> By: Rates Cuts, New Look, and Other Links | Million Dollar Journey http://www.four-pillars.ca/2008/04/17/rrsps-for-younger-investors/comment-page-1/#comment-5474 Rates Cuts, New Look, and Other Links | Million Dollar Journey Fri, 25 Apr 2008 09:32:50 +0000 http://www.four-pillars.ca/2008/04/17/rrsps-for-younger-investors/#comment-5474 [...] Four Pillars and WhereDoesAllMyMoneyGo gets into an analysis of RRSPs for Younger Investors. [...] [...] Four Pillars and WhereDoesAllMyMoneyGo gets into an analysis of RRSPs for Younger Investors. [...]

]]> By: Four Pillars http://www.four-pillars.ca/2008/04/17/rrsps-for-younger-investors/comment-page-1/#comment-5388 Four Pillars Tue, 22 Apr 2008 02:03:09 +0000 http://www.four-pillars.ca/2008/04/17/rrsps-for-younger-investors/#comment-5388 Telly - I think sharing a room is great for a little kid. That's what ours are going to do for a few years. Sam - I'm not a fan of living with your parents as an adult - if you can handle it, fine but I don't really think it's all that "cool". Telly – I think sharing a room is great for a little kid. That’s what ours are going to do for a few years.

Sam – I’m not a fan of living with your parents as an adult – if you can handle it, fine but I don’t really think it’s all that “cool”.

]]> By: mints http://www.four-pillars.ca/2008/04/17/rrsps-for-younger-investors/comment-page-1/#comment-5379 mints Mon, 21 Apr 2008 19:49:54 +0000 http://www.four-pillars.ca/2008/04/17/rrsps-for-younger-investors/#comment-5379 All great Great advices. I really appreciate all the contribution. i have few questions though. 1) Is samantha is seriuos about her retirement or just want to use RRSP as a tool to save taxes? 2) I DONT see any big reason for consolidation. i mean just by assuming tight cash flow.......... let assume with gross amount: income = 7000 p.m(84000/12) mortgage = 1365 ( 6% variable term 5 for 25 years) student loan 309 Total of concerned debt 1674 assume misc. montlhy expenes max 3500 Total expense 3500+1674= 5174 uncommitted income = 7000-5174=1826. do you still need to consolidate!!!! 3) regarding RRSP if u realize the power of compunding its better to contribute as early as u can. 4) make use of RRSP to reduce your mortgage. 5) make all your non tax deduntible debts in to tax deductible. First decide what exactly you want to achive!!! All great Great advices. I really appreciate all the contribution. i have few questions though.

1) Is samantha is seriuos about her retirement or just want to use RRSP as a tool to save taxes?

2) I DONT see any big reason for consolidation. i mean just by assuming tight cash flow……….

let assume with gross amount:
income = 7000 p.m(84000/12)
mortgage = 1365 ( 6% variable term 5 for 25 years)
student loan 309

Total of concerned debt 1674

assume misc. montlhy expenes max 3500

Total expense 3500+1674= 5174

uncommitted income = 7000-5174=1826.

do you still need to consolidate!!!!

3) regarding RRSP if u realize the power of compunding its better to contribute as early as u can.

4) make use of RRSP to reduce your mortgage.

5) make all your non tax deduntible debts in to tax deductible.

First decide what exactly you want to achive!!!

]]> By: Samantha http://www.four-pillars.ca/2008/04/17/rrsps-for-younger-investors/comment-page-1/#comment-5377 Samantha Mon, 21 Apr 2008 18:01:11 +0000 http://www.four-pillars.ca/2008/04/17/rrsps-for-younger-investors/#comment-5377 Telly you brought up the most interesting thing. Of the people my age that I know I'm the only one with my own home. Most still live with their parents. I disagree with the idea of living with your parents till you're 30. In fact I have married friends living with their parents indefinitely. In my case I bought a house I felt was within my means and met my life goals. It works out to marginally more expensive than renting was but I'm working toward something I very much want and I have done a thorough cost analysis to ensure I can afford it. And I must say that I agree that the key is to continue living like a student. Having been an OSAP student I know full well that I can live off of 9 thousand dollars a year - a feat that not many can pull off. Telly you brought up the most interesting thing. Of the people my age that I know I’m the only one with my own home. Most still live with their parents. I disagree with the idea of living with your parents till you’re 30. In fact I have married friends living with their parents indefinitely.

In my case I bought a house I felt was within my means and met my life goals. It works out to marginally more expensive than renting was but I’m working toward something I very much want and I have done a thorough cost analysis to ensure I can afford it.

And I must say that I agree that the key is to continue living like a student. Having been an OSAP student I know full well that I can live off of 9 thousand dollars a year – a feat that not many can pull off.

]]> By: telly http://www.four-pillars.ca/2008/04/17/rrsps-for-younger-investors/comment-page-1/#comment-5376 telly Mon, 21 Apr 2008 17:37:33 +0000 http://www.four-pillars.ca/2008/04/17/rrsps-for-younger-investors/#comment-5376 You're right Mike! :) And it's too bad because I love that I shared a room with my sister. I'm sure there were times when I was annoyed but overall, I think it made us a lot closer. Plus, we were at our funniest at 11:30pm when we should have long been sleeping. :) I only finally had my own room when I was, let's say, far too old to be living at home! ;) You’re right Mike! :) And it’s too bad because I love that I shared a room with my sister. I’m sure there were times when I was annoyed but overall, I think it made us a lot closer.

Plus, we were at our funniest at 11:30pm when we should have long been sleeping. :)

I only finally had my own room when I was, let’s say, far too old to be living at home! ;)

]]> By: Four Pillars http://www.four-pillars.ca/2008/04/17/rrsps-for-younger-investors/comment-page-1/#comment-5375 Four Pillars Mon, 21 Apr 2008 17:21:51 +0000 http://www.four-pillars.ca/2008/04/17/rrsps-for-younger-investors/#comment-5375 You're right Telly. Another big thing now is that you have to have a separate bedroom for each child. Apparently sharing a room is passe. Mike You’re right Telly.

Another big thing now is that you have to have a separate bedroom for each child. Apparently sharing a room is passe.

Mike

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