Here is a side - by - side comparison of SPY and
RSP over the last decade.
Due to this factor (and other factors), non-reg withdrawal tax may actually be lower than
rsp over a very long time, maybe 30 + years.
As you might imagine, SPY has outperformed
RSP over the prior year period, with a 4 % gain for RSP vs. a flat return on SPY.
Not exact matches
Now that
RSP season is
over, brokerages are taking a slight pause before trying to land the deposits from tax returns into new trading accounts.
BMO says that 60 % of Canadians are anxious
over finding money for an
RSP contribution as the deadline arrives and 49 % of those who contribute do so in one lump sum.
From my perspective, retired and
over 70, i think that
RSPs are, in the long run, a bad idea for MOST people and I would not recommend them unless there are particular circumstances that would seem to justify them.
Loonie, if you are
over 65, then in your 30's there was no
rsp contribution carry forward.
So, if you die without a spouse, and especially if you inherited a spouse's
RSP, and you're sitting on, let's say, 300K in
RSP / RIF when you die, your income for that year is going to be
over 300K, and your estate will be paying a lot of tax on it.
I'll bet that when there are billions upon billions sitting in tax free savings account,
RSP plans slowly get cashed and dissipate, some future government will salivate
over the potential revenue gained by eliminating and / or taxing TFSA accounts.
Spousal plans can also be used by a spouse or partner
over the age of 71 who can no longer contribute to their own
RSP.
You can transfer savings from any number of
RSPs into your Self - Directed RIF and exercise more control
over the way your income is paid.
I'm gathering my assets information (cash,
RSP, margin, etc) in an excel to keep track of my saving progress
over time.
I try to pick up stock sin my tfsa then roll them
over into my
RSP come next year.