tofu

10# fibbi

if that is what you mean, it is not 先洗未來錢, it is only reduce your future purchasing power.
if you purchase a house and get a mortgage, you will need to make mortgage payments.  it will reduce your purchasing power as well, will you consider it is 先洗未來錢
as i understand, 先洗未來錢 is spend your future money.  they money that you don't own.

tofu

3) You only invest in Canadian stocks/mutual funds and do not plan to invest on your own.
you can self directed your foreign stocks under rrsp.

tofu

19# 快樂牛郎

so on the other hand, rrsp is good, since you only pay tax when you need the cash, not everytime you balance your portfolio

快樂牛郎

3) You only invest in Canadian stocks/mutual funds and do not plan to invest on your own.
you can self directed your foreign stocks under rrsp.
tofu 發表於 2010/2/1 20:29

Yes, you can buy foreign stocks, but every time you sell the $ is automatically converted back to CAD, so you lose at the minimum 2% spread every single time.

fibbi

21# tofu


Let me further my explanation a bit....what I'm trying to say is that:
Let's assume, I have RRSP limit of $10K per year. And each year I assume I save $10K to max out my RRSP.
But in the year 2009, for some reason, I only save $5K.
Let's say I did borrow. Then in the year of 2009, I have my $10K RRSP.
Then in the year 2010, assume my saving budget doesn't change, I save $10K, but out of the $10K, I have to repay my loan. So, only $5K left.  (neglect the interest and tax refund for now).
Therefore, to me, I "pre-spend" my 2010 RRSP budget in 2009, that's why I consider RRSP loan to be 先洗未來錢 (and I consider 未來錢 as future income). Because it takes away my future income. That's the way I see it.

I'm not too good at math, comments are welcome!

fibbi

I think we can trade any (including TSX) stock inside self-directed RRSP acocunt not only foreign stock?

快樂牛郎

21# tofu


Let me further my explanation a bit....what I'm trying to say is that:
Let's assume, I have RRSP limit of $10K per year. And each year I assume I save $10K to max out my RRSP.
But in the ...
fibbi 發表於 2010/2/1 22:35

In this regard, you did not spend your future income on RRSP.  It was the moment when you spent your 2009 RRSP budget on whatever stuff you purchased.

fibbi

27# 快樂牛郎


That's true...but whatever spent already spent...
Then the consideration becomes ... to make this spending "now"....or "future"

快樂牛郎

27# 快樂牛郎


That's true...but whatever spent already spent...
Then the consideration becomes ... to make this spending "now"....or "future"
fibbi 發表於 2010/2/2 00:20

What was spent was spent.  Whether you buy more RRSP or not makes no difference.  It's neutral.

tofu

25# fibbi
i think it is not the math, it is the concept.

先洗未來錢 is you spend the money that you don't own.  
rrsp account, is an asset to you, you own the assets under the rrsp account, you can access to it any time.  although you plan to use the money after you retire, it doesn't mean you can access it now.  beside the tax implication, it is another investment or saving account.
since you are not good in math, why don't we put it in table

case 1: purchase $5K rrsp only, since you only have $5k

$5K(asset)  - $0K (liability)=  $5K (net asset)

case 2: purchase $10K rrsp with $5K rrsp loan

$10K(asset)  - $5K (liability)=  $5K (net asset)


just same as purchase a $150K house with a $100K mortgage

$150K(asset)  - $100K (liability)=  $50K (net asset)

if you don't buy the house

$50K(asset)  - $0K (liability)=  $50K (net asset)

so you net asset is the same.
so will you conside buying a house is 先洗未來錢.  since you spent your future income in the mortgage.

先洗未來錢is more like you don't have money and you get a loan or credit card for a vacation.  and you need to repay it after the vacation.  after you 洗this 錢, you don't own this 錢anymore.
but in the rrsp case, you still own the money.

yes, spent is spent, but you don't spent money to rrsp
you only invest or transfer money to rrsp
have you ever heard people spent money to investment account or saving account.