canadianbear
Hero Member
- Oct 31, 2010
- 2
- Category........
- Visa Office......
- Islamabad
- Job Offer........
- Pre-Assessed..
- App. Filed.......
- Nov 17 2010
- Doc's Request.
- April 20 2012
- AOR Received.
- Dec 23 2010
- File Transfer...
- Dec 14 2010
- Med's Request
- June 7 2012
- Med's Done....
- June 27 2012
- Interview........
- N/A
- Passport Req..
- Jan 30th 2013
- VISA ISSUED...
- If today is ppr then tomorrow. :P
- LANDED..........
- ASAP PLZ GOD
Well...
RRSP: Its tax deferred. That means, you get a tax break now and hopefully when you retire, your income will be low enough that you won't get taxed high, when you take out the money from RRSP. In other words, contribute for retirement here and don't look to take out unless in life emergency and are willing to pay 10% penalty.
TFSA: Great for a saving account but stay within your limit. I would say, take the tax refund check you get (if you get one) and put it in here. If you over contribute or withdraw and contribute within same year, you will pay a heavy penalty. If you withdraw, you are not allowed to put that money back until next year.
Saving Account: Consider this CASH! Save in this account that if you were going to lose you job / source of income tomorrow, you can survive 3 months at least. Not many people get money left over but if you do, create that emergency fund.
i Believe in is DEBT Free living and live within your means. Most people don't realize, Mortgage rates low, lets buy a 500,000 house. WRONG! What will happen when interest rates go up?! your house value will go down to 480,000 but you are still paying based on 500K. All of sudden, your now paying more interest!
Mortgages are compounded interest. So every 6 months or annually, your interest will be compounded on outstanding debt. You are better off having a line of credit or power line as thats fixed interest. if you can't get that, PAY IT OFF!
Bottom line.
1) 3 Months Buffer funds to Survive
2) Pay down the mortgage aggressively. Use those Ballon Payments!
3) RRSP ~$2000
4) TFSA => Put Tax refund in here or left over money you would like to save for medium term. GIC in TFSA for example.
5) Luxury Fund.
6) Retire, you have too much money
Cheers,
CB
RRSP: Its tax deferred. That means, you get a tax break now and hopefully when you retire, your income will be low enough that you won't get taxed high, when you take out the money from RRSP. In other words, contribute for retirement here and don't look to take out unless in life emergency and are willing to pay 10% penalty.
TFSA: Great for a saving account but stay within your limit. I would say, take the tax refund check you get (if you get one) and put it in here. If you over contribute or withdraw and contribute within same year, you will pay a heavy penalty. If you withdraw, you are not allowed to put that money back until next year.
Saving Account: Consider this CASH! Save in this account that if you were going to lose you job / source of income tomorrow, you can survive 3 months at least. Not many people get money left over but if you do, create that emergency fund.
i Believe in is DEBT Free living and live within your means. Most people don't realize, Mortgage rates low, lets buy a 500,000 house. WRONG! What will happen when interest rates go up?! your house value will go down to 480,000 but you are still paying based on 500K. All of sudden, your now paying more interest!
Mortgages are compounded interest. So every 6 months or annually, your interest will be compounded on outstanding debt. You are better off having a line of credit or power line as thats fixed interest. if you can't get that, PAY IT OFF!
Bottom line.
1) 3 Months Buffer funds to Survive
2) Pay down the mortgage aggressively. Use those Ballon Payments!
3) RRSP ~$2000
4) TFSA => Put Tax refund in here or left over money you would like to save for medium term. GIC in TFSA for example.
5) Luxury Fund.
6) Retire, you have too much money
Cheers,
CB
