How to maximize RRSP contribution room | Page 4 | RRSPs and RRIFs | Discussion forum

I'll just say that "the math" is only part of the story. The assumptions behind the construction of the math question are where the big issues arise.
I discussed this in an earlier controversy with Norman, and Kidd has added other info.

It's actually the high rollers in corporate executive suites that have the best pension plans. They make sure they are very well looked after.

Very important to remember that those enormous corporate pensions are in fact paid for by US because we are the end-point of whatever their business is. There is no such thing as a small producer of toilet paper, to take a current hot commodity.

Very funny idea to imagine that anyone could avoid patronizing large corporations! if you think that's possible, then you're not as smart as I thought you were.

I'm glad that at least some people who work hard in this crazy country have decent pensions. Everybody should have them.

promise said
I definitely would like to get a place in Toronto area given I work in the downtown area and I like your scenario but if I can get a better value in Oshawa or any other GTA I am also game. I need to do more research to see what's the rent value going in those areas and appreciation in comparison me getting a place in Toronto.

Another question I really need clarification on RRSP say if I had a year where I took a leave of absence and my income for that year falls below a low tax margin income year can I withdraw from my RRSP without any penalty before retirement and do I get taxed at lower tax margin of 33% or lower even though when I contributed to my RRSP it was at a higher tax margin of 43%?

do I have to pay it back similar to the home buyer plan if i withdraw it or i just loose the contribution room going forward. Do you guys use any strategy i briefly heard people saying to withdraw RRSP before the retirement age to avoid all the claw back you would get from the old age security etc, any advice on this would great.  

You can take money out of an RRSP ANYTIME you WANT. You do not need to pay it back. You pay a withholding tax. This can be claimed back on your income tax return the following spring. The amount you get back depends on your marginal rate. If you can live on 80% normal income less tax. My suggestion is take out in several smaller chunks to have less withholding. The first $5,000 is 10%. The next $10,000 is 20%. Over $15,000 is 30%. These values are reset if you take it out in different years. Say July-December and January-June. When you start working you get more contribution room in future years.

No, Bill, it's not possible to live a life that doesn't include paying major corporations. Have you ever tracked the entire supply chains of everything your money goes to? Of course not. It would take years to do it and by then the info you started with would be out of date, but it doesn't take too long to run into a major corporation, even for the stuff you can buy at the health food store or farmers' market. And there is a lot more that we require than food and other consumables.

Just because you see an unfamiliar brand name somewhere, it doesn't mean that it represents a new company that started from scratch and avoided patronizing all existing major corps. And quite often they are just new brands of existing companies that perceive a new market niche for themselves.

I am well aware of the ethical alternatives and use them when suitable. That's why I know that it's functionally impossible to live outside of supporting major corporation - with rare exceptions such as homeless people, Old Order Mennonites etc.

Let's get back to the topic at hand, which was about RSP contributions.