Canadians | ING Direct Accounts - I will donate $20 to DGN for every signup

[dead mike]

soooo, rrsp and tfsa both are good because they encourage saving your money....

but, say i put a $1000 in a tfsa in 2011 and i make $100 on that, in 2012 I can take the money out tax free $1100, 2013 I get some more money, I can then put the $1000 back in plus the next $5000 or even more if harper gets his way to my tfsa. my tax free investment limit accumulated in the past does not disappear

if i contribute $1000 in 2011 to my rrsp, I lose $1000 off my RRSP contribution limit and my ability to defer taxes, and when i take the $1100 out in 2012 I am going to pay some taxes there so that fucking sucks, and from what I have seen banks usually charge a service fee to withdraw from the RRSP so another fuck.

Personally I am in a non taxable situation due to me piddling income, thus no taxes to defer, I would save that RRSP contribution to some magical year when I find myself at a higher taxable rate, I would use my RRSP then to avoid the higher tax rate at the time. until then tfsa appears a lot better too me.

 

[dead mike]

and hold it down, i'll sign up for that ing direct account in a minute, good opportunity to clean out my joint account with the wife like a boss!!!!

[video]http://youtu.be/NisCkxU544c[/video]

 

[47]

hhahhahahahahah

SIIICK

 

[Fork Included]

deadmike, if you put in 1000 of your earned and untaxed money into a TFSA then you'll get 100 in 1 year but you'll pay 36% on the 1000 that you put in (depending on your tax bracket), so your net out of pocket by 260 dollars :/

again, the question is, the 1000 dollars that you have, is it already laying around from previous years? In which case you're not saving , you're investing, at a rate better than a regular account and your interest earned is not taxed.

arn't you an accountant? fuuuuuuu

 

[dead mike]

The idea is don't eat up your RRSP contribution limit until you are in a higher tax bracket. 1000 contribution now is worth 250 tax savings (for me 0 cause like i said i don't make any money i would just be losing the opportunity to defer taxes down the road), for you maybe in 5 years a 1000 contribution could be worth 500 tax savings when you are earning more income.

 

[Remy]

Bunch of derps.

I didnt really want to chime in on this but everyone has this stupid debate, TFSA or RRSP. It all depends on a person. They are both good products that save your taxes.

TFSA is better for short term investments as you can take this money out at any time and not have to pay any taxes on any interest, dividends or capital gains you make. You cannot do this with an RRSP as you will be taxed at the tax bracket you are currently at.

Also in an RRSP no matter what you get taxed at some point, it is only a tax deferral tool, who is to say when you retire you wont be taxed at the second tax bracket and not the first. The argument however of saving your RRSP contribution room for when you make enough to be in a higher tax bracket is bullshit. Most people NEVER max out their RRSP in their entire lifetime. Seriously most people cant save 20k+ to put in an RRSP or even 18% of their income. Thats living on rice and beans for life.

Dumb and pointless argument here, both are awesome tools to promote saving and not paying taxes. +1

 

[DrUgZ]

TFSA > RRSP if you already have a good pension. RRSP is a waste if you are making good money when you retire because you will be in a higher tax bracket and end up paying more taxes. Ghey.

 

[Brades]

Everyone please STFU and open an ING account

 

[dead mike]

i opened one shiiiit.

> also 2011
> still paying taxes
> ishygddt
mfw

 

[Brades]

Got the $50 from deadmike. Thanks

 

[dead mike]

i got 50 too fuck yea, time get a handjob or somthing

 

[skd_mrk]

These sound very similar to 401(k)/Traditional IRAs in the states in which pre-tax funds are deposited. You pay interest on whatever is withdrawn in retirement. Its a pain to get money out of these accounts for anything other than retirement (because they HEAVILY tax it).

The Roth IRA is the type in which you put already taxed funds in and you pay no taxes on any interest/growth.

Personally, I contribute enough to my 401k to maximize the company match and put everything else I can afford into my Roth IRA. Taxes are going to rise in just about every country in the world. Additionally you can withdraw out of the Roth without penalty (after 5 years) for a number of things such as a home purchase or kid's education.

Just throwing that out there for the American crowd: open a Roth IRA if you're eligible.

 

[Steve]

These sound very similar to 401(k)/Traditional IRAs in the states in which pre-tax funds are deposited. You pay interest on whatever is withdrawn in retirement. Its a pain to get money out of these accounts for anything other than retirement (because they HEAVILY tax it).

The Roth IRA is the type in which you put already taxed funds in and you pay no taxes on any interest/growth.

Personally, I contribute enough to my 401k to maximize the company match and put everything else I can afford into my Roth IRA. Taxes are going to rise in just about every country in the world. Additionally you can withdraw out of the Roth without penalty (after 5 years) for a number of things such as a home purchase or kid's education.

Just throwing that out there for the American crowd: open a Roth IRA if you're eligible.

Yep. Roths ftw. I only manage to get about $2k a year into it but it will be well worth it when I'm in my late 40's.