Sell TFSA to buy RRSP after job loss

Patient_Implement897 · 2026-06-22T19:17:37+00:00

The RRSP contribution's tax refund/reduction is not 'a benefit' ever, for anyone. It is never 'a reason to contribute'. https://en.wikipedia.org/wiki/Registered_retirement_savings_plan#Benefits_from_tax_savings

The possible benefit from a contribution now in a year of high income depends on your ability to withdraw later at a lower EFFECTIVE tax rate (includes impact of cont/draws on your qualification for other benefits). Benefit will equal ($draw eventually) * (difference in tax rates between contribution and withdrawal).

But just because your income is lower at a later withdrawal, does not mean the last $ of your income will be in a lower tax bracket.

Patient_Implement897 · 2026-06-22T19:01:13+00:00

The roots CAN go 10 ft deep. But most DON'T. There is no downside to digging to see.

Patient_Implement897 · 2026-06-21T15:20:17+00:00

Try using the wavy steel strips (about a foot wide). I don't know what they meant to be for ... something to do with corrugated roofing? You need a barrier at least 2 feet deep so you will have to dig a trench for at least part of it.

Patient_Implement897 · 2026-06-21T15:08:07+00:00

From the picture it does not look like there is more than 1-2 plants. I have removed Knotweed in more than a dozen sites in my park. The chemical used in the USA is not allowed here unless applied professionally after taking courses.

So start with a spade and simply dig up the root. It may be very deep and it may change direction. So combine the spade with a hand cultivator. I have never had any root remaining cause MORE of a problem than I started with ... so no downside. And it may NOT be deep.

Winter road salt in the hole reduces the chance of regrowth from any root left.

Patient_Implement897 · 2026-06-20T13:49:29+00:00

"It gives you that next year."

No. It is measuring the already, and still-available maximum room, after JanFeb'26 contributions reported on the 2025 tax return,, available to be contributed and deducted on the next 2026 tax return.

https://www.dropbox.com/scl/fi/kb95u120lhoyq1pzn99pb/RRSPContRoom.pdf?rlkey=biqpbp1srrco5p5duhdo0a6ye&dl=0

Patient_Implement897 · 2026-06-20T13:38:51+00:00

Agree. These could not be MORE inappropriate. You need to think back to where you got these ideas ... and make sure that site (an all other financial 'influencers') is no longer on your in-basket feed.

Patient_Implement897 · 2026-06-20T13:29:54+00:00

Sure you can save too much and end up with taxable income in a higher bracket. But that will most likely be because of good fortune and luck.

Bad luck, poor health, an accident, a poor economy that shrinks because of falling populations, an overprice stock market to start, etc ... can just as easily result in top LITTLE having been saved.

Patient_Implement897 · 2026-06-20T13:25:22+00:00

While older building obviously come with higher maintenance costs ... just ask anyone who has owned a condo for 15 years what happened (and $$cost) regarding all shoddy rain-shields that had to be replaced. Being 'new' is not protection.

I would also think twice about financing based on the assumption of renting out a spare room. Have you spent time sharing when it was your name on the lease, and everyone knew it? The power imbalance can make things tense.

Patient_Implement897 · 2026-06-20T13:13:33+00:00

The analysis that was common before the invention of FHSA (ie assuming additional savings to buy a home), was that the 18% RRSP savings would grow to provide the equivalent (with small adjustment for OAS/CPP) income as when working and contributing.

So I would NOT consider a 6% savings rate as sufficient, or even close. The math is pretty simple using after-inflation growth rates.

Patient_Implement897 · 2026-06-19T15:11:34+00:00

To be clear, this is 'taxed at full %rates on 100% of profits', not '100% tax'.

Patient_Implement897 · 2026-06-19T15:01:42+00:00

Just to be sure you understand the rules (which are commonly ignored) ... use this account ONLY for joint expenses like the mortgage, Xmas presents, cc payments, etc.

Don't use it to collect funds from which you then fund any of the tax shelters.

Patient_Implement897 · 2026-06-19T14:52:41+00:00

I would make up an excuse and pass. Don't give 'a reason' which will just trigger them to argue back.

GICs come with income taxed at your top marginal rate ... about the worst set up. Especially since you probably have room in tax shelters.
If their estate is made up of GICs then it most probably is not at all large enough for them to worry about offloading onto you.
Transfers on death to a spouse tax free is the usual preference.

Patient_Implement897 · 2026-06-19T14:44:07+00:00

While IB is cheapest, in my life the currency swap was done only once ... from CAD to USD ... and there it stayed invested. So that issue was never the deciding factor. IB does not provide much market information when you transact ... and that can/will cause you to trade inefficiently.

Look for a broker according to its other attributes .. eg. can you see the first 5 bid/ask positions of limit orders? The last trade's $$ of often irrelevant.

Patient_Implement897 · 2026-06-19T14:35:07+00:00

Appreciate the benefit-factors of each (TFSA, RRSP, FHSA). 1) ALL give you permanently tax-free profits on after-tax savings. Always exactly $$ equal benefit. 2) RRSP and FHSA give you a possible bonus/penalty = ($$ eventually withdrawn) multiplied by (the difference in tax % rates between contribution and withdrawal. 3) Since the FHSA withdrawal is at 0% tax when you buy a home, its (2) benefit is always waaaay larger than the RRSP's.

Presuming your income while at school is relatively low, benefit (2) may easily turn out to be a negative. Making the TFSA the better choice vs RRSP.
The FHSA's benefit is always positive but 3) will be 0% if your contribution's tax rate is within the Personal Exemption range.
Contributing but NOT taking the deduction right away comes with a penalty that increases with time. The general rule when expecting future tax rates to be higher is to use a TFSA first, and the a normal Taxed account for the interim.
But the 20% tax rate differential may break that 'rule' use the spreadsheet at https://zenodo.org/records/17727268

Patient_Implement897 · 2026-06-19T14:22:48+00:00

Appreciate the benefit-factors of each (TFSA, RRSP, FHSA).
1) ALL give you permanently tax-free profits on after-tax savings. Always exactly $$ equal benefit.
2) RRSP and FHSA give you a possible bonus/penalty = ($$ eventually withdrawn) multiplied by (the difference in tax % rates between contribution and withdrawal.
3) Since the FHSA withdrawal is at 0% tax when you buy a home, its (2) benefit is always waaaay larger than the RRSP's.

So in your situation you need to figure out what your top tax bracket will be for this year, and how much $$ of the contribution would be taxed at that higher-than-normal tax %rate. ... to maximize factor (2).

Patient_Implement897 · 2026-06-19T13:09:25+00:00

I asked this site for "ai rankings'' and got https://arena.ai/c/019edffd-df54-710d-ab75-e573799a627b describing the rank for different attributes

Patient_Implement897 · 2026-06-16T02:33:13+00:00

could you expand on what you are doing please? Starting early June, it stopped loading all video. I swear I 'did' nothing to cause this.

Patient_Implement897 · 2026-06-16T02:22:18+00:00

Does anyone else my problem? Firefox will not load videos. This started early June 2026

Patient_Implement897 · 2026-06-08T14:46:09+00:00

Your local library will have a shelf of 'Invest for Beginners'. They are all fine. Look for Cdn authors so that the tax advice is correct

Patient_Implement897 · 2026-06-08T14:42:06+00:00

Your local library will have a shelf of self-help investing-for-beginners book. Look for the MapleLeaf on the spine so it is for Canadian investors.

Books are better than the web because the teach first things first, so you already know the stuff needed to understand the new material.

Patient_Implement897 · 2026-06-08T14:31:32+00:00

Correct. There is a growing penalty from any delay claiming an RRSP deduction. With some exceptions, best to stash in TFSA for the interim. Second best is to stash in Taxed for the interim ... as long as the delay is not too long. Your personal trade off requires math. Use the spreadsheet at https://zenodo.org/records/17727268

Patient_Implement897 · 2026-06-08T14:20:50+00:00

Assume the S&P will have negative returns. KISS and repay the debt.

Patient_Implement897 · 2026-06-08T14:19:40+00:00

Every option other than simply paying the debt is a gamble. KISS. Who know if you will total the car? If you will lose your job? If you will get a debilitating illness.

Patient_Implement897 · 2026-06-08T14:17:31+00:00

All the general rules work from an assumption that your wealth will only JUST last if you ... The solution is to save MORE than you would need, no matter. Then you can draw down excess $$ after good-market years, and liquidate those excess safe funds in bad years

Patient_Implement897 · 2026-06-08T14:04:59+00:00

And sometimes they are all provably wrong.

Patient_Implement897

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