Posted on: 26-03-11 18:26:08
Me and my wife are eligible to buy RRSP worth $2,00,000 and if I have the money what are the safest options available in Canada.
I do see safe deposits offered by Indian nationalized banks for senior citizens offering a 9 - 10%.Is there any RRSP investment channel that can can give me the same options in Canada?
Also what is tax bracket if we sell property in Canada and net a margin of $2,25,000.
Thanks,
Jack109
Quote:The safest is a GIC.
Originally posted by Jack109
Me and my wife are eligible to buy RRSP worth $2,00,000 and if I have the money what are the safest options available in Canada.
However, GICs are CDIC insured only up to a limit of $100,000 per institution.
Therefore, you will have to split your investment across 2 or 3 institutions.
If you are indeed investing nearly $100,000 per bank, you should be able to get higher than market interest rates for your investment.
GIC is about as safe as you can get.
Therefore, your rate of return will be lower than other forms of investments.
Quote:Short answer : No.
I do see safe deposits offered by Indian nationalized banks for senior citizens offering a 9 - 10%.Is there any RRSP investment channel that can can give me the same options in Canada?
There are certain discounts for seniors but nowhere near 9 - 10%.
You can get 9 - 10% returns but not in safe GICs even with senior discount rates.
To get 10% annual returns you will need to invest in stocks, high yield bonds, etc.
Quote:If this property is designated as your primary home, then there are no taxes to be paid.
Also what is tax bracket if we sell property in Canada and net a margin of $2,25,000.
If this is an investment property, you will need to pay capital gains taxes.
The tax rate will depend on your province.
Check out the tax tables at:
http://www.taxtips.ca/taxrates/on.htm
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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
There are some drawbacks with the RRSP as at the old age you may not be eligible for OAS given to lower income citizens. The other thing is that it is a tax deferred as told in earlier post.
Better if you invest it in somewhere like property, stocks or you can start your own business which can generate return on it. With this much of money you can buy franchisee of any business. You can generate reasonable amount of profit when you sell it.
