If I was starting over investing, I would not put money into an RRSP. I was supposed to be paying less tax on money taken from my RRSP accounts. That is not how things worked out. I am paying more tax on my withdrawals than the tax I saved putting money into it.
The main problem was that I did very well investing and now I am buying a penalty for it. I am certainly glad that only half my money was in RRSP accounts and the other half in a trading account when I stopped working. Now I have to take money out of my RRIF and a big chuck goes directly to pay income tax. I do not get any OAS.
I wished I never opened an RRSP account. I have talked to other seniors who feel the same way.
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I have added money to RRSP. would you clarify why you are not getting the OAS? We were told by experts that the RRSP is great to save money for retirement and the tax is less. What changed?
ReplyDeleteBasically I did too well in the RRSP accounts. When I was putting money into the RRSP all the experts were saying it was a good thing and that I would pay less tax taking it out.
DeleteTurned out I was in a lower tax bracket in putting money into the RRSP that when I am taking it out.
If you have over a certain limit of income the OAS is cut.
I invested in dividend growth stocks and did nothing fancy. If I was starting out today and know what I know I would max out my TFSA account first.
I have maxed out my tfsa. In your opinion, should I now begin investing in my rrsp or should I invest in my non registered account going forward. I will not retire for 30 years and my salary is currently 75,000. I have a pension as a nurse in ns.
DeleteThat is always hard to say for individual cases. When I stopped working I had half my money in a trading account and half in RRSPs. I am glad I did have half in my trading account and I wished I just used that.
DeleteI know a number of seniors with real sticker shock on how my tax they are paying when taking money from their RRIFs. A lot complain that they do not get OAS, which they had expected to get.
You might be interested in this article:
Deletehttps://www.adviceforinvestors.com/news/tax-planning/tax-efficiency-is-a-great-investment-strategy/