April 12, 2019

Exploring Better Alternatives to RRSPs

Lately, a lot of our analysis and writing hovers around retirement and RRSPs. We started with a brief post about Not Blindly Contributing to your RRSP a few months back and continued in March with more elaborate one explaining how we were Dealing with Complex Retirement Considerations. Today we persist with some profound thoughts on the never-ending RRSP versus non-registered debate. You’ll still note our research is not exhaustive as it particularly refers to our personal situation.

Some people feel RRSPs are a government scam to take more of their money thru taxes. Many angry retirees almost consider RRSPs as evil when they realize how much tax they owe at withdrawal. They just forgot all about the juicy tax refunds they received when they deducted their RRSP contributions in the first place. Over the years, these RRSP deductions helped fund a great portion of their retirement stash.

We can view RRSP tax refunds as a loan the government allows you to make to yourself. You only have to remember that you’ll have to reimburse it with interest some day (at withdrawal). If you are in the same tax bracket, the interest rate of that artificial loan will be equivalent to your investment return. If you now fall in a lower tax bracket, good for you, you’ll pay less «interest». Similarly, if your tax bracket is higher, tough luck, you’ll end up paying more «interest» via income taxes.

April 03, 2019

Investing The 12-Minute Way (Revisited)

The 12-Minute Series was originally posted in 2012.

We’ve decided to republish it integrally because we believe it can still help as everyone aspires to make things better.

Let’s hope it stirs up the discussion and stimulates you to change the world 12-Minute at a time!

This article was originally posted on September 12, 2012

Keep It Simple

You should only use financial products you understand. So, stick to the basics. Complex and complicated products often only serve those who sell them.

Same goes for stocks, only invest in solid companies you know and understand.

In this great Internet/Information era, it’s relatively simple to get data on any public company. To stay effective, we recommend you only take 12-Minute when you first analyze a potential candidate for your portfolio or watch list.