Were to put one's money?????

[spike99]

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I've been working at home (home office in the basement) for almost 4 years. During that time, I would re-direct my estimated "home to office transportation", office lunches, daytime office snacks, etc. etc. costs into my RRSPs. I also got bi-weekly RRSP deductions (at payroll) and for my yearly bonus, I would put 80% (its legal max) into RRSPs as well. My wife doesn't do office work anymore (she had to stay home to look after our disabled son). Thus, she has "zero" RRSP bucket size. My RRSP bucket size is currently almost full. Full because of 4 years of hard investing - instead of spending it. My wife told me that if we add another $1,000 to our RRSP accounts (mine and/or her spouse account), we'll be over our MAX limit. And if over the legal MAX, we get harsh penalties and taxes - on the over amount. If wondering, we really don't make a lot of money (especially on my single income) thus, our RRSP bucket size is small - compared to someone making 4 times more then us.

With all this in mind, where's a good place to invest one's dollars to lower one's "year end" income tax payment amount? Since hiding dollars behind an RRSP isn't possible for me anymore, what is one's next "tax shelter" choice??

thanks.

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[Linndie]

;D HAPPY BIRTHDAY,


Judy & Phil.





Age is a number........ and mine 's unlisted

[Blossom/Jackie W.]

Spike.....

I didn't know you could do that....."

I would re-direct my estimated "home to office transportation", office lunches, daytime office snacks, etc. etc. costs" into my RRSPs

I'm scratching my head......

[spike99]

Thanks Blossom.

I wonder if investing into RRIFs or RESPs would lower a Canadian's "taxable" income as well? Wonder if theses "registered" savings plans also lower one's "taxable" income - like RRSPs currently do? If other's "maxed out" their RRSP buckets, just wondering what their secondary tax-lowering shelter would be?

BTW: When I retire, I won't have company medial benefits (need to buy 3rd party plan) and won't have a company pension. My RRSPs must last me (and my wife) until we're both age 65 (or is that currently age 62)?? And my govenment is talking about moving our current old age pension upwards to age 70. If I retire at age 60, that's 10 years of living off our current invested RRSPs. And if RRSPs are taxed at 40% (widthdrawl tax and commission), I still don't have enough "set aside" to live - until my government provided Old Age Pension and old age health care kicks in. How do some of you Canadian folks do it? re: Bridge from retirement date to government old age pension date???

Just wondering....

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[spike99]

For more details on RRSPs, surf:

www.envisionfinancial.ca/page278.aspx

If wondering, one is allowed to contributed 18% of one's yearly income into RRSPs (for that year). So... If I make $40K / year (for me, my wife and 3 kids) that's $7.2K into RRSPs per year. If wondering, $7.2K / 12 months = 600 month. Of this $600, $200 / month (100 / bi-weekly pay) + year end company bonus (80%) + previous years tax return. Thus, our yearly RRSP bucket size is maxed out.

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