I have few questions about RRSP.....
1. Is it better to buy RRSP from Bank Directly or through a financial Planner-- Any experince with WFG?
2. Is it possible to open a Joint RRSP account. (I know about Spousal RRSP) but i want to know if there is a way to open joint account.
3. Is there any differnce in buying RRSP before Dec31st and After it.
A quick reply will be appriciated.
Thanks in Advance.
Quote:It depends on your investing profile and what you need to invest in.
Originally posted by tigercanada
1. Is it better to buy RRSP from Bank Directly or through a financial Planner
If you can determine your investing requirements and how to asset allocate your money, then you can do it yourself.
However, if you are just starting out and need other services like tax preprations, insurance, etc. you may consider a financial planner to do everything for you as a package.
Quote:Stay away. Far, far, away.
-- Any experince with WFG?
If a WFG agent is harassing you, tell them that you are not interested.
Quote:I haven't heard of one - but the financial experts might know of something.
2. Is it possible to open a Joint RRSP account. (I know about Spousal RRSP) but i want to know if there is a way to open joint account.
I only know of spousal RRSP and spouse as a beneficiary/nomination on the account.
Quote:The deadline for current year is Feb 28th.
3. Is there any differnce in buying RRSP before Dec31st and After it.
So no there is no difference.
But the sooner you can do it, you will avoid the rush.
There is a huge rush at the banks for appts. during Jan and Feb.
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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
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Posts: 1628
Location: carl sagan's universe
Posted on: 22-12-08 11:18:24
Location: carl sagan's universe
Posted on: 22-12-08 11:18:24
Quote:
Originally posted by tigercanada
I have few questions about RRSP.....
1. Is it better to buy RRSP from Bank Directly or through a financial Planner-- Any experince with WFG?
2. Is it possible to open a Joint RRSP account. (I know about Spousal RRSP) but i want to know if there is a way to open joint account.
3. Is there any differnce in buying RRSP before Dec31st and After it.
A quick reply will be appriciated.
Thanks in Advance.
bank or financial planner- please see response from pratickm
WFG- if the person is an old hand then he/she is OK. They might try to illustrate some fancy financial strategy like investment loans and the like but unless you are very aggressive- do not go for it right now. Only RRSPs is cool right now.
The WFG dude might try and convince you to use the amount say $3000 that you wish to put in an RRSP touse it to pay interest on a loan of $50,000 and you will get back the same tax refund from government. Again unless you are very aggresive in nature, stay put for the time being till market conditions improve.
Joint RRSP account is not allowed- only in a single person's name with a beneficiary- could be a spouse, child, mother, father or charity.
RRSP contribution upto Feb 28 (sometimes till March 1) of 2009 is valid for tax deduction for this year, provided you have an NOA (notice of assessment) for the current year that shows you have RRSP room. But with or without the room you can still contribute 18% of your salary upto max of 20,000 but you won't get a tax refund in the latter scenario (i.e no RRSP deductible room)
Quote:
Originally posted by tigercanada
3. Is there any differnce in buying RRSP before Dec31st and After it.
A quick reply will be appriciated.
Thanks in Advance.
Although deadline is Mar 01 2009, in case of Spousal RRSP it makes sense to contribute by Dec 31st 08... that way you may get rid of 1 out of 3 years of lock in period, in case you want to use it as a tool for splitting income with spouse ....
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Vik
Quote:
Originally posted by tigercanada
I have few questions about RRSP.....
1. Is it better to buy RRSP from Bank Directly or through a financial Planner-- Any experince with WFG?
2. Is it possible to open a Joint RRSP account. (I know about Spousal RRSP) but i want to know if there is a way to open joint account.
3. Is there any differnce in buying RRSP before Dec31st and After it.
A quick reply will be appriciated.
Thanks in Advance.
All of your questions have been properly addressed by Pratick and Investpro.
However, I would like to add one thing regarding your 3rd question. It might make a difference if you contribute to your spousal RRSP on or before 31st December, 2008 as you would gain 1 year for the income to be attributed back to you if your spouse were to withdraw this amount any time in future. The reason being, if you contribute to your spousal RRSP and your spouse withdraws that money before the 3 calender years are over, it would be attributed back to you and you would have to treat that amount in your income.
For more details follow this http://www.cra-arc.gc.ca/E/pub/tg/t4040/t4040-e.html#P1144_35839
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Another Questions.
How safe is the personal information with these Brokers.
let say my wifes contrinution room is 10K and Mine is 10K, But my wifes income was pretty low , but if she still contribute 10K to her RRSp and and when we file tax , can i get credit for that 10K she contrinuted to RRSP.
Thanks,
Quote:
Originally posted by tigercanada
Another Questions.
How safe is the personal information with these Brokers.
let say my wifes contrinution room is 10K and Mine is 10K, But my wifes income was pretty low , but if she still contribute 10K to her RRSp and and when we file tax , can i get credit for that 10K she contrinuted to RRSP.
Thanks,
I would say that your personal information is 'pretty safe' with brokers of reputable organizations as they all have to follow the privacy laws.
For further details about the PIPEDA (Personal Information Protection and Electronic Documents Act) see this http://www.privcom.gc.ca/information/02_05_d_08_e.asp
If your wife contributes to her own RRSP, only she can claim the contribution on her tax return. However, if you contribute to your spousal RRSP then your wife becomes the owner of that RRSP but you claim the contribution in your tax return.
If your wife's income is low than either you should contribute to your spousal RRSP (subject to your total contribution room) or even if your wife contributes to her own RRSP, then ask her not to claim the dedcutions and carry it forward for future years to cliam latter when her income increases.
Your Financial Planner should be able to address all these and ohter questions about your total financial planning needs.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
