Member since: Nov 06
Location: Somewhere in dreamland
Originally posted by MITRON
1. Always pay of your DEBT which has high interest first like Credit cards, Car loans etc
2. Then Pay off your MORTGAGE so you are Mortgage free in Retirement
3. Then contribute to your RRSP.
The more RRSP you have from your own hard earned money, the less you get in handouts from the government in Old age like GIS.
The less you have in RRSP & the less you have contributed towards your own retirement, the more you have in handouts like GIS from the government in old age
RRSP is nothing but deferred taxes. You might save in tax now. But when you withdraw it, you will be taxed, but hopefully you will be in a lower tax bracket in your retirement when you withdraw from RRSP.
But dollar for dollar any income from RRSP or any other income will be deducted from GIS in your old age. And you won't even be eligible & qualify for GIS if you are NOT a low income Senior.
Very good advice. Thank you for your tips.
Some Western countries like Australia do take note of your assets before giving old age pension and people who have a very expensive primary home will have reduced old age pension.
With the number of refugees and asylum seekers Trudeau and his team are bringing into Canada, those days may not be far away for Canada too