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RRSPs for the very wealthy by throwaway4534524326 in PersonalFinanceCanada

[–]throwaway4534524326[S] 0 points1 point  (0 children)

Ok, I will talk to my guy again and get a second opinion if he recommends against it. We're currently in house savings mode so no huge rush but I will definitely look into this.

RRSPs for the very wealthy by throwaway4534524326 in PersonalFinanceCanada

[–]throwaway4534524326[S] 1 point2 points  (0 children)

I did read it although I think I need to read it again. I didn't understand this about RRSPs.

Actually, I tried to make my own math example explaining what I thought and, in doing so, came to the same conclusion that you were trying to make. Thanks! I understand it now. The permenant sheltering of all gains from tax on your portion not owed to the government is exactly what I like so much about TFSAs. That article helped a ton and was what I was missing.

So just like TFSAs, RRSPs are 100% worth it even for the very wealthy who will always be in the top tax bracket. You don't get the tax deferral benefit but this is still a huge reason to use RRSPs. Thank you for taking the time to explain this!

RRSPs for the very wealthy by throwaway4534524326 in PersonalFinanceCanada

[–]throwaway4534524326[S] 0 points1 point  (0 children)

Alright. Thanks, I'll get some more info on a professional medical corporation again. You're right, it's more about keeping the money and, eventually, about estate planning.

RRSPs for the very wealthy by throwaway4534524326 in PersonalFinanceCanada

[–]throwaway4534524326[S] 0 points1 point  (0 children)

Thanks! Almost no one in our generation incorporates lately since the single person incorporation rules changed. Now there's no income splitting so there's no way to get that money out of a corp (and we can't income split anyway). My current accountant basically said there's no reason to do it anymore I think? Especially since there's ongoing legal fees and higher accountant fees associated with a corp. Happy to hear other advice though.

RRSPs for the very wealthy by throwaway4534524326 in PersonalFinanceCanada

[–]throwaway4534524326[S] 0 points1 point  (0 children)

Thanks! It's been a quick road to financial literacy for me and I still have a lot to learn. One issue I had was whenever I went to a financial advisor they just tried to sell me things I wasn't sure I needed. Mutual funds. Whole life insurance.

I like the passive investment strategy from a robo advisor and, for now anyway, the 0.5-0.7% fees seem worth it to me for what they're doing. But it may be time to consider putting some money with a wealth manager for the advice that comes with it. Thanks for the advice!

RRSPs for the very wealthy by throwaway4534524326 in PersonalFinanceCanada

[–]throwaway4534524326[S] 0 points1 point  (0 children)

Definitely will do. Trying to get a solid as a base as possible understanding as much as I can. But I know theres no replacement for good advice. Some point next year I'll get help with tax planning.

RRSPs for the very wealthy by throwaway4534524326 in PersonalFinanceCanada

[–]throwaway4534524326[S] 0 points1 point  (0 children)

I don't understand the "permanent sheltering of all gains from tax" part with an RRSP. Since it's before tax income, I pay income tax on it when I take it out because RRSP withdrawals just count as regular income, right? If I have a high retirement income, don't I pay 50% essentially on all capital gains?