lets discuss
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Belieber here.
RRSP’s are sort of a hybrid between a US 401k and traditional IRA. They’re set up by individuals, but companies can also set them up on behalf of employees.
Fairly straightforward: You contribute to your RRSP and receive a full tax deduction on the deposit. Contribution limit is 18% of your previous years income, subject to a maximum (~28k in 2020). Unused contribution room carries forward. Money grows tax deferred and can be withdrawn anytime but is fully taxable when taken out. Can defer withdrawals until age 71 and then you must begin taking an annual withdrawal of initially ~5%, increasing each year beyond 71.
That’s it
wtf?
no penalties so you can withdraw anytime if you retire early?
carries forward? so if u were a 5 year old, that 28k carries forward?
Yep, no penalties. Theoretically I could take a 1 year leave from work and withdraw from my RRSP at low marginal tax rates.
And no, re the 5 year old. You have to have taxable income the prior year to get contribution room. So if somebody starts working when they’re 18 and makes $10k, they could contribute $1,800 to their RRSP the following year (18% of income to a max of $28k). If they don’t make the contribution the $1,800 carries forward indefinitely.
You can also withdraw to pay post-secondary costs or to put a down payment on a home, but there is a repayment schedule to be followed. Otherwise, tax applies.
wait are you telling me there is no tax? if you withdraw to use a donw payment. what does post secondary mean like school?
Lifelong Learning Plan allows for withdrawal to pay eligible post-secondary costs. I actually used it when I went back to school!!! 
Of course, I repaid what I borrowed in line with the legislated repayment schedule.
Homebuyers Plan is for down payments on eligible real estate. Again, there is a repayment schedule.
Under either, if you don’t make at least the minimum required payment, then you start getting taxed! 
Yeah there’s a few quirks here and there.
You can make a tax-free redemption from your RRSP to buy a home (max $35k redemption) or to pay for any qualifying post-secondary education program (most uni’s and college’s would qualify here).
Once the money is out tax free you have to pay yourself back over a set period of time. For the home purchase its 15 years. If you take out the full 35k you have to put $2,333/yr back into your RRSP for 15 years. You don’t get a new tax deduction on that contribution as you’re just paying yourself back. If you don’t make that contribution $2,333 is included in your taxable income for the year.
They are pretty good plans. I took 15k or something out of my RRSP in 2010 when I bought my first house. Great way to get funds for a down payment when you’re young.
ahh icic. so its not tax free. but still nice to have!
Hey bread, didn’t realize you were a Canuck. Cheers
Nerdy, you thinking about moving north or something? It’s cold up here, you know.
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haha. its interesting cuz when i was looking up places to retire in the us. i may consider buffallo. best schools. cheap place. but its frozen so f that. u should move there, prolly better than toronto wit hthe same frozen bs.
Ugh, Buffalo seems like a bit of a wasteland - no offence. I did drive down there to catch the Bills/Ravens game in November. Had a blast. The tailgating is real. Half the stadium was just bombed walking around the concession stands and not even watching the game. I know because I was one of them.
haha yea no worries. i had no intention. i looked up the weather there and was like. nahh… honestly if i had to choose id say bogota! as im always cool!
https://weatherspark.com/compare/y/23324~20372~1816~28981/Comparison-of-the-Average-Weather-in-Bogotá-Buffalo-San-Diego-and-Buenos-Aires
also i’ve been thinking why do cold countries have hot women…
I’ll have to keep that link. The woman’s always pawing at me to take her somewhere warm. It is cold as ice up here, no denying that. Toronto summers are nice though, but the rest of the year is just terrible.
Interesting list with the hot women. Didn’t realize Ukraine was cranking out the hotties. Interestingly, the majority of those cities are cold weather climates. Still, better to be warm and surrounded by 7-8s than cold with 9-10s.
Buffalo??? Ay mijo, hace mucho frio en Buffalo!!! 
My best friend lives in Bufftown. Visited him last fall. My advice: don’t do it. The city sucks. Unless you want to live in a city that dies little by little every decade until you’re like Detroit.
Yea who knows what the future holds. All I know is there is a lot of options! I’ve never even lived in snow.
With Buffalo there aren’t a whole lot of options though!
What I mean is it has good schools and a low cost of living. Perfect place to grow a family. But honestly I still like the idea of going back to the philippines. Or even trying out different countries.
Ya put on a coat, gloves, boots, scarf and a hat!!! Ain’t no thang!!! 
