Nam

I purchased 5000 RRSP two years ago and switch it to locked GIC (1.5 yrs ).
And put another 5000 into Tax free saving account.

That RRSP that I purchased is for first time home buyer deal...

So I have another question, if I use that 5K to purchase my first home (within 1-2 yrs), do I have to put back 5K to avoid paying tax?

People told me that if I use the RRSP for first hoe purchase, I can be tax exempt.

Littleprince

原帖由 Nam 於 2009-2-25 18:05 發表
I purchased 5000 RRSP two years ago and switch it to locked GIC (1.5 yrs ).
And put another 5000 into Tax free saving account.

That RRSP that I purchased is for first time home buyer deal...

So I h ...

首先﹐你用來買屋唔應該 LOCK 住﹐如果你看中房子咪要解約﹖ 唔好續了﹐最好放 MONEY MARKET FUND﹐方便D﹐因為其實回報差不多﹐但靈活好多﹐而家好多銀行還有高息 RSP SAVINGS 戶口添﹐不用鎖死兼無風險﹐何樂而不為呢﹖

答你的問題﹕
1) 你那 TFSA 都可以拿來做首期﹐兼免稅﹐有錢可以放返入去。
2) 你那 RSP 可以免稅取出來做首期 (記得要填 CRA 那張 FORM﹐當然你要看清﹐確定自己合資格喇)
3) RSP 取出來做首期後﹐可以分 15 年還 (其實意思係供回﹐呢個“還”字非常誤導﹐根本是你自己錢而已﹐而且就算還唔起﹐譬如你丟了工作﹐都沒甚麼大不了﹐最多那年的 $1﹐333。33 當收入而已 <點解 $1﹐333。33﹖我係按照你用盡 $20﹐000 來計﹐分開 15 年> 但點解有好多人都情願早點供回﹖有個別情況係有著數﹐呢D要好長篇幅﹐有興趣先講吧。)
4) 用 RSP 作首期唔著數的地方是失了 LONG TERM GROWTH 的好處﹐因為時間就是金錢。。。但對好多人黎講﹐唔夠錢比首期呢個係一個最好的辦法囉。

Disclaimer: 本人並非在銀行工作或是註冊理財顧問﹐純粹因有高人在身旁而已﹐你去請教專業理財顧問好D﹐我只係純粹論壇吹水﹐大家有權唔信。。。 只係在下知無不言﹐言無不盡﹐只此而已

點解﹖因為我響呢度問野都好多人答﹐有來有往之馬

Nam

Thanks Little Prince.

Well, initially, I didn't lock my RRSP. It was a high interest flexible RRSP account.
Then GIC was doing promotion, lock 1.5 years for 3.7% interest rate.  I didn't expect the housing market will crash so soon. (I expected after 2010..) ..

So I won't able to cash this 5000 until mid 2010

Well, I learned from my lock GIC experiences so I only put my 5K in tax free saving account as normal saving ja. ... cuz' I might need these cash flow for wedding/house purchase within 2 years mah...

peter236

Are these Money Market Funds good? The GIC has only 3% interest rates and it is for 2 years, That means 1.5% per year. Is there anything that is safer and more flexible than GIC?

Littleprince

原帖由 peter236 於 2009-2-25 21:34 發表
Are these Money Market Funds good? The GIC has only 3% interest rates and it is for 2 years, That means 1.5% per year. Is there anything that is safer and more flexible than GIC?

無野安全過 GIC 窩。。。所謂 GIC 就是 Guaranteed Investment Certificate﹐即係話政府有 CDIC 保障到 $100﹐000 每個戶口﹐就算銀行關門你都拿得回錢﹐你話係咪安全﹖當然更靈活的就是普通儲蓄戶口喇﹐但利息可能只得 0。1% 窩。。。GIC 有平均 2% 都算啦﹐因為與普通儲蓄戶口對比還是很大的喔。。。

另外﹐你的利息計算方法是錯的﹐所謂 3% 就是每年年息 3%﹐唔係 3% 除兩年 = 1。5% 呀。。。

Money Market Funds 通常係投資響一籃子一D相對低風險的投資裡面﹐例如債券﹐它不能與其他有股票的基金相提並論因為性質不同。。。若與 GIC 比則回報差不多但更靈活。。。當然逢親基金都係有風險的﹐銀行倒閉你的錢就化水了﹐不像定期般有政府保險。。。

peter236

Are there any type of bonds that pay more than GIC?

快樂牛郎

原帖由 peter236 於 2009/2/26 14:51 發表
Are there any type of bonds that pay more than GIC?

I recommend you to stick with your checking account.

chrichri

原帖由 Nam 於 2009-2-25 19:33 發表
Thanks Little Prince.

Well, initially, I didn't lock my RRSP. It was a high interest flexible RRSP account.
Then GIC was doing promotion, lock 1.5 years for 3.7% interest rate.  I didn't expect the ...

most of FI's would allow you to cash non-redeemable RRSP GIC if you are participating in HBP (first time home buyer purchase plan) or LLP (Life Learning Plan) with interest paid up to your withdrawal date. I would suggest you check with your FI's.

And for HBP.. Yep. you have 15 yrs to repay for your rrsp after you withdraw the money. The limit is 25000 as of 2009 federal budget plan.
as far as i know, you don't have repay money in the 1st year, so it will be 16 yrs.
I would  the interest rate for non-redeemable RRSP GIC is much higher and your 3.7 % is really good interest rate. i am sure you will not able to get the same interest rate right now at 3.7 for 1.5 yrs.

also, keep in mind that if you do need to withdraw money from rrsp for HBP, the $ has to stay in the rrsp acct for 90 days

chrichri

原帖由 Littleprince 於 2009-2-25 21:50 發表

無野安全過 GIC 窩。。。所謂 GIC 就是 Guaranteed Investment Certificate﹐即係話政府有 CDIC 保障到 $100﹐000 每個戶口﹐就算銀行關門你都拿得回錢﹐你話係咪安全﹖當然更靈活的就是普通儲蓄戶口喇﹐但利息可能只得 0。1%  ...

totally agree with about earning btw GIC and money market fund right now. In money market fund, you can lose money or earn a few %, but within GIC, your principal is guaranteed and also the interest payment.

It really depends on what your investment horizon, risk tolerance and investment objective. If you want 100% safety, money market mutual fund and GIC will be better. Money market fund gives you more flexibility and lower minimum balance required. It is also subject to market fluctuation and future performance is not guaranteed. rate of return fluctuates...
vs.

GIC- You can choose from redeemable or non redeemable, redeemable gic is around 0.75 to 1.xx around all FI's. It is usually cashable after the first 30 days. interest rate, interest payment amount and principle are guaranteed. Non-redeemable gic can range from 30days to 5 or more years.  the longer you locked in, the higher interest rate they will pay. you can expect up to 4% per year if you choose sth like 5 yrs term..only cashable on maturity date with interest payment. also, you can choose to take the interest payment from semi-annual or annual with some FI's.

chrichri

my suggestions here will be:

have a savings acct for regular savings -- regular savings acct allow you to do withdrawals and deposit at bank machines or tellers.
interest rate varies. interest earned is your taxable earnings, but gives you daily access

also have a tax free savings account- max contribution is 5000.00---accessible mostly through online, telephone banking or at branch, but not atm
withdrawal amount and unused contribution can be carried forward to next year

rrsp- if you are paying tax or in middle-high income tax bracket.
so you can save on your income tax

pay off your credit card balance first or consolidating your debt if you have any --- through personal line of credit cuz the rate is usually lower
even though you don't carry credit card balance, have a PLC to use for emergency fund or back up.

For credit card, use the one that suit you the most. lower interest rate vs. points vs. cash back vs. no fee vs....

just my 2 cents...  again, just for sharing