RRSP , Tax , TFSA , RESP, and RDSP Time and #MoneyTalk

It is that magical time of the year, when folks are barraged with countless megatons of advice about financial matters. Some say it is RRSP season, others say it is Tax Preparation season, and still others say it is really TFSA season, but I disagree. It is also RESP season and for some of us RDSP season, because if you are doing financial planning and you have kids you had better include your RESP in those discussions as well. Is it RRSP , Tax , TFSA , RESP or RDSP season ?

Ballet

RRSP , Tax , TFSA , RESP , RDSP or Dance Season ?
Image courtesy of Danilo Rizzuti, at FreeDigitalPhotos.net

The decision point for a lot of parents is always confusing but allow me two possible lines of attack for your financial decisions in February:

RRSP Pas De Deux

  • Put an amount of money into your RRSP (assuming you have spare cash, and no debt to pay off, if you have debt, pay off debt)
  • From the Refund that you receive (remember you are only deferring your tax on this money, they should really rename the thing, the Registered Tax Deferal Program)
    • ½ of the money into your TFSA, to build up (tax free) the tax you will need to pay when you take the money out of your RRSP.
    • ½ of the refund into your child’s (or childs’) RESP up to the max for the year. The RESP payment will get you added money from the government too.

RRSP Grand Jete (redux)

  • Put an amount of money into your RRSP (assuming you have spare cash, and no debt to pay off, if you have debt, pay off debt)
  • From the refund (again only deferred tax here), do the following
    • ½ of the refund up to the max for the year to your family member’s RDSP
    • ½ of the refund up to the max put into your kids’ RESP
    • Any remaining moneys put into your TFSA to build up the Tax Payment needed to take your money out of your RRSP.

The funny thing I am seeing on line is that many writers do not take into consideration the fact that many folks have many different registered accounts that “need to be fed”.

RESP Questrade Banner

My Writings for Week Ending February 10th

This week I saw a really good article on the Stats Canada Web site, and that inspired, You are Spending More, where I do some comparison with the numbers in the Stats Canada report and report and contrast them. You can use these numbers to help plan your financial future, if you are not tracking your own numbers.

A Money Thought

As usual the folks at the Fraser Institute pokes at the Public Service with their latest report on the differences between the Public and Private sector employees.

Money News from the Ottawa Winter Wonderland

In Ottawa we are celebrating Winterlude, which seems to be going well, temperatures are conducive to the festival (not too cold, but not melting either). No mention of RRSPs down on the Rideau Canal these days.


RRSP? TFSA? Which One?

Kerry at Squawkfox brings us her spin on the topic with Should you contribute to an RRSP or TFSA? The answer is of course? Anyone? Bueller?


2016 Random Thoughts Year End

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