Random Thoughts: It’s RRSP Time!

Oil Prices Explode!

The RRSP season continues on with many great posts from many different bloggers, but a more insidious thing is going on, and that is the explosion on the price of Crude Oil, thanks to unrest in the Mid-East. Gas prices in Ottawa jumped overnight to $1.20 per liter with promises of this going up even more, as things in the middle east get more and more interesting, which could mean an inflationary spike, that could start a lot of financial dominoes to start falling (i.e. interest rates, more price increases, etc.,). All of this price jump is synthetic for now, because there has been no talk of Oil Wells being shut down or sabotaged (yet) but once that happens, look for gas prices to keep going up.

Have you decided what to do about your RRSPs or TFSAs? That is a big water cooler conversation these days, and the chique answer is to say you don’t believe in RRSPs any more and are instead putting money into your TFSA, but given the way I dress, you can guess the chique answer doesn’t really turn my crank much. I have a pretty solid pension for now, so my RRSPs are not being added to much, but I would put more money in them, if I had more disposable to use. You should do what you think is right for your situation (i.e. what I do, is what I do, and you should decide on the basis of your own financial needs).

A week of Economic Data, Taxes, Money tracking and warning notices about coming expenses in my writings:

• With Inflation Steadies in January I pointed out that while inflation has steadied at 2.3%, it is still growing a full 1% higher than last year at this time, and now with Gasoline exploding this month, watch for the CPI numbers to start spiking again.
• Given it is getting close to Tax Time Medical Expenses and Taxes I point out that even if you do have a health plan, you still may be due moneys back from the government, if you have good accounting of how much you spent.
• With Where did my money go I started off pointing out a fun site to track bills geographically but then pointed out that data about your spending habits already exists and what might be coming in the future.
• With Here comes the summer (big spending list) I ran with an idea that the Big Cajun Wife gave me, and then went introspective on what my summer spending might turn into (quite scary).
• Random Thoughts: Love Week is a recap during Valentine’s Week in 2011.

As a note, I actually enjoy all comments (even the ones that question my sanity), and will try to respond to most comments, so please feel free to comment away.

Other Financial Bloggers had more insights about the RRSP season and the financial turmoil in the world these days:

• As your RRSP portfolio grows the Canadian Couch Potato asks the question How Often Should You Rebalance ? I end up rebalancing each time I put money into my RRSP, as best I can, thus I miss out on the fees, but I am a little out of balance normally.
• Michael James helps us out with Understanding Income Tax Installments, for those of you who must carry this additional burden.
• Tom over at Canadian Finance Blog had a guest post from another friend Jim Yih about whether Retirement Planning: Do We Have a Crisis on our Hands? I think we do, when the thick part of the baby boomer wedge goes through, what will that leave us all? RRSPs figure prominently folks.
• Canadian Capitalist discusses The Claymore Portfolio Index Allocator tool, from their web site. I had dinner with the Capitalist and the CEO of Claymore Funds which is much like me discussing golf with Tiger Woods (both live in a very different world from me in that field of endevour).  He was very gracious and didn’t mock my lack of sophistication in the world of investing.
• Yes I am Cheap points out that RRSP issues down south (OK 401k issues) are starting to arise with the first generation of Retiring Boomers Finding 401k Balances Short of Needs, which is pretty standard from what I hear.
• Larry MacDonald discusses that since the Loonie is so powerful maybe it is time to think about Diversifying into the U.S. ? Depends on what you want to invest in, is the good question, lots of RRSP info here as well.
• Sustainable Personal Finance points out that Age Ain’t Nuthin’ But A Credit Card Number (a title worthy of this blog), what is it about? Gotta go read to find that one out.
• Preet showed that he knows how to tie a double windsor knot in his Appearance on CBC’s Lang and O’Leary Report, talking about Taxes and such. Truly he is the fashion plate for Personal Finance bloggers (and a Media Maven).
• Mike at Money.Smarts discusses another interesting weapon in your RRSP arsenal RRSP Home Buyers Plan First Time Buyers Loan, which Michael James also points out the issues he ran into with this program.
• My Own Advisor followed Michael James’ lead and tried Getting His Free Credit Report, good luck with that. He was also at dinner with the Claymore CEO as well!

Remember

“The taxpayer – that’s someone who works for the federal government but doesn’t have to take the civil service examination.”

Author: Ronald Reagan (see above image)