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About the Author: Richard Money


    1. It really just depends on your personal financial situation. If you need a tax shelter for longterm investments, you can use it as a tax shelter. It isnt a perfect fit for every investor though.

    2. I wouldn’t say that Bruce. The RRSP locks your funds in the account so if you want to make big purchases in other assets you can’t use ANY of your RRSP funds. I mean you can but you’re gonna pay a fat penalty and tax.

      But personally I will contribute to my RRSP.

    3. @Enrique O There is absolutely no lock in of any kind on RRSP’s. Your money is never locked. At any moment you can liquidate the entire amount of you wanted to.

      What you say about taxation upon withdrawal is correct but you do also get a tax break upfront when you contribute. You can invest the tax you save to completely nullify any loss you would see from the withdrawal tax.

      As for what you said about the penalty, there is no penalty as there is no lock on it.

    4. The RRSP is definitely a great account for the vast majority of people and should be utilized at some point in your life. Maybe not currently, but there’s definitely utility for it as you traverse the stages of your life and as your investment outlook changes.

    5. It’s awful because I have to pay income tax instead of capital gains when I sell stocks in my RRSP and withdraw the money. I’ll l be making a hundreds of thousands in retirement so it isn’t a good choice for me.

  1. Paying you mortgage down faster doesn’t really help you long term. Better to have a safety net because if you keep paying extra and then your life changes the and can’t make some payments in the future the bank doesn’t care that you paid extra.

    1. not true, paying down mortgage mean you have extra cash. Ex As I owned a big house, I rent out 3 rooms and get $3000 passive income each month because I pay off all my mortgage this year. I use all of this passive income and re-invest back to Stock each month. Assuming the stock did great, I will be far ahead lots people who still has no passive income. if the market is bad which it will sometime in future, I still has my passive income. now I have lots of options to choose from, I can quit my job and do the thing I like, or keep my job and if I like it further re-invest in the future. Now that is the power of paying off your mortgage and passive income. I am at my age of 30.

  2. This is great Brandon! I’m in this situation. Been in and out of grad school for most of my 20s and finished my PhD this year. I’ve been able to put half of every scholarship/award I earned away into my TFSA during this time, ultimately maxing it out.

    As a single individual with no dependents, looking to buy my first home in mid 2023, I likely won’t open a FHSA. But did open an RRSP and started contributing earlier this year (no pension with my current role) and have almost fully established my emergency fund in a high-interest savings account.

    Thank you for taking the time to put this together!

  3. For the taxable account you could look into buying Canadian preferred shares that have a tax credit advantage. Also buy prefs that have a maturity date and don’t reset as you will get your principal back.

  4. Question : hi Brandon, regarding RRsf, I already have the pension plan from my company which both of us together contributed 13.5%, so I still have room for RRsf, however recently I learned that once I take the money from RRsf when I retire, it is considered income, however comparing if I use the non registered account for investment, i only pay capital gain and divdend, which the tax rate is lower than income from RRsf, if I plan to withdraw when I am retired which is lower income tax bracket, can you please reconfirm if I am correct?

    1. I filmed the video at like 6am on basically 4 hours of sleep… I was very sleepy and cranky in this one 😅

  5. Thanks for the video Brandon. I for one would love a non-registered video where you focus on the types of investments best held non-registered. Have a good day.

  6. I think the only other one could be the RDSP for investors with a disability. This is one not to ignore as the government will match part of your deposits.

  7. Hopefully a constructive comment : I think the lighting is too dark. Pretty sure you can make it a bit more enjoyable to watch. Just my 2 cents.

    Great content as always, continue your great work! 👍

  8. Hi! thank you for this video. It would be great to have a video over best strategies for non registered / margin account. 👍🏼

  9. Watched and liked, thanks Brandon! Should have also mentioned rental property as real estate would be be a better choice over primary residence, from an investment perspective.

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