"CB" (jrcb)
08/25/2019 at 19:13 • Filed to: Never take advice from boomers
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"CB" (jrcb)
08/25/2019 at 19:13 • Filed to: Never take advice from boomers | 0
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Thanks for the vote of confidence that I won’t live to 65, mum!
In actuality, I’m going the bank to figure out savings and retirement again. Being 24, better to start now than later. I have a tax free savings account, so my plan is probably to go half and half on that and a registered retirement savings plan. But, maybe the financial advisor will tell me I’m dumb.
CarsofFortLangley - Oppo Forever
> CB
08/25/2019 at 19:29 |
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Buy cars man!
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CB
> CarsofFortLangley - Oppo Forever
08/25/2019 at 19:33 |
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Investing in a depreciating asset? There’s no way this can fail!
KingT- 60% of the time, it works every time
> CB
08/25/2019 at 19:42 |
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I max out my 401K for the yearly limit, well over the match from my company- do the match level at the very least . Never say no to free money! Plus, compound interest is your friend!
At 24, you’re way ahead of most people. I had other commitments and didn’t start investing in a retirement plan until I was 29.
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CB
> KingT- 60% of the time, it works every time
08/25/2019 at 19:44 |
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I’ve got a pension as well, but I figure it makes sense to plan for the future that’s not optimal.
someassemblyrequired
> CB
08/25/2019 at 19:51 |
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Max out TFSA, RRSP you have to pay tax on withdrawals (basically tax deduction now, taxes when you withdraw ) . TFSA you don’t get the deduction (after tax money) but you don’t pay any taxes when you withdraw the money. Plus you can access the money at any time without penalty, unlike an RRSP.
Bottom line is unless you are making bank and in a really high tax bracket , the TFSA is the way to go.
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CB
> someassemblyrequired
08/25/2019 at 19:52 |
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I figure, and I’ll definitely be bumping up my TFSA contributions , but I’m also wondering if even contributing a little bit a month to an RRSP isn’t a bad idea.
Poor_Sh
> CB
08/25/2019 at 19:57 |
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I don’t max, but I save 10% and have a 5% match, I also will have a pension if things don’t go to hell (as they will). So I think I’m on track for what I should need.. HOWEVER I just don’t feel like trying harder. I’m pretty sure I’ll take it out with penalties when I turn 34 and find out I have a year to live. A year with super sweet travel and adventure!!!
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CarsofFortLangley - Oppo Forever
> CB
08/25/2019 at 20:14 |
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Wait... I'm losing money?
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someassemblyrequired
> CB
08/25/2019 at 20:17 |
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Unless you need the tax deduction or you have a corporate match policy, the RRSP doesn’t confer nearly as much tax benefits as the TFSA plus you pay penalties for withdrawals . In your 20s unless you’re a high-flying Bay Street lawyer or your company will match RRSP contributions the TFSA is a way better deal and far more flexible.
KnowsAboutCars
> CB
08/25/2019 at 20:47 |
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What depreciation?
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CB
> someassemblyrequired
08/25/2019 at 20:57 |
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My employer won't match, but I figure it can't hurt to put a little bit in until my TFSA gets maxed out.
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someassemblyrequired
> CB
08/25/2019 at 21:06 |
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yep max out tfsa before you even think about RRSP under those conditions
subexpression
> CB
08/25/2019 at 21:48 |
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Some of the people I could picture advising against retirement plans today are people who have/had plans that were heavily invested in the stock market and watched half their nest egg evaporate a few years back. You also will occasionally meet people who went overboard funding a retirement plan and ended up short on cash . But you can minimize both risks with planning.
Longtime Lurker
> CarsofFortLangley - Oppo Forever
08/25/2019 at 22:13 |
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How did your investment in Mazda pay off.
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wafflesnfalafel
> CB
08/25/2019 at 22:26 |
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your future you thanks you
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CarsofFortLangley - Oppo Forever
> Longtime Lurker
08/25/2019 at 22:32 |
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If it gets written off? I'll make a post about the $ breakdown
punkgoose17
> CB
08/25/2019 at 22:38 |
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Are pensions in Canada as bad as the US where you have to plan for it to not be there?
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CB
> punkgoose17
08/25/2019 at 22:51 |
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Mine should be good because I'm a government employee, but you never know.
Grindintosecond
> CB
08/26/2019 at 02:44 |
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Save for everything. Meaning lots save for school, or for kids college, or for mortgage, but not many play the smart game and save for everything at once. Putting one off for another now guarantees never getting back to any one thing.
arl
> CB
08/26/2019 at 07:45 |
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Max it out and keep it maxed out. I didn’t start until I was 35. You’ve got 10 years on me and can save a LOT of dough by retirement time. Just do it, do it, do it!!
Future next gen S2000 owner
> CB
08/26/2019 at 17:11 |
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Go post tax. Pay taxes on the money now while you are , presumably, in a low bracket. That way you won’t pay taxes when you pull it out and are in a, presumably, higher bracket.
Time is your friend 5 bucks today is worth more than 10 bucks in three years...........okay maybe not but compound interest is good!
davesaddiction @ opposite-lock.com
> CB
08/27/2019 at 12:05 |
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Yes! Save and invest early and often. Compound interest is your friend.