Rrsp 2008?

[jewel9]

what is the best rrsp to buy for 2008?

[kramerz80]

That question is much to general...:confused:

You need to speak with an investment advisor of some sort...

[nobody1234]

what is the best rrsp to buy for 2008?

Pumpkin futures...

[mcewen]

Pumpkin futures...

you know.. his ignorance isn't entirely his fault... the banks propagate the misinformation.

I don't know the number of times this season i have heard the Duca Financial Services radio commercial saying "the current 5 years RSP rate is 4.x%"

What is the general population to think when even the people who are supposed to be "the experts" are spreading misinformation?

OP... look up RRSP and find out what exactly that is... or search this site.. it has been covered many times before.

[nobody1234]

you know.. his ignorance isn't entirely his fault... the banks propagate the misinformation.

What is the general population to think when even the people who are supposed to be "the experts" are spreading misinformation?



It's not just the banks, but also RedFlags, see here: http://www.redflagdeals.com/deals/main.php/financial/rrsprates/

It's highlighted at the sticky at the top of this forum, I complained but nothing has changed:
http://www.redflagdeals.com/forums/showpost.php?p=6428284&postcount=7

[pitz]

Do banks make more money off of 'deposits' (ie: GICs), or do they make more money charging 2-3% MERs on mutual funds?

A bank gets a $1000 deposit at 4%, they lend it out on a 5-year mortgage at 5.5%. They make 1.5%.

A bank sells $1000 of mutual funds. They take a 2.5% MER, 0.5% of which actually is the cost to run the fund, and the other 2% is profit. They make 2%.

So why do banks push GICs so hard? Or are there really that many Canadians who have always bought GICs, and always will buy GICs for their RRSPs?

[nobody1234]

A bank gets a $1000 deposit at 4%, they lend it out on a 5-year mortgage at 5.5%. They make 1.5%.


If a bank gets a $1000 deposit at 4% can't it then lend out $10000 or something like that?

[pitz]

If a bank gets a $1000 deposit at 4% can't it then lend out $10000 or something like that?

How? Counterfeiting? A deposit is essentially a loan to the bank, and not a contribution of equity.

Banks can leverage up equity 10X, but they still need to borrow the money to actually achieve the leverage.

[eelfliw]

what is the best rrsp to buy for 2008?

How do you buy RRSP? I've only heard of people putting money into RRSP accounts or taking money out of RRSP accounts or collapsing RRSP accounts. Never heard of people buying RRSP.

[Sylvestre]

How do you buy RRSP? I've only heard of people putting money into RRSP accounts or taking money out of RRSP accounts or collapsing RRSP accounts. Never heard of people buying RRSP.

psh, I'm waiting for the posts that go "should I buy a GIC or RRSP? I want 15% returns so I can buy my house next year".

[iluvmikeharris]

I don't know the number of times this season i have heard the Duca Financial Services radio commercial saying "the current 5 years RSP rate is 4.x%"


Geez, you're right, no mention on the type of product within the RRSP - what a bunch of arseholes.

http://www.duca.com/images/Banner-rrsp-loans.gif

[CSK'sMom]

Well all I'm going to say is that our 16 yr old made his first RRSP contribution tonight. He made his full allowable contribution for 07. His income tax refund cheque will go into the account and it will make about half of his max contribution for this tax year (08). :cheesygri

[iluvmikeharris]

Well all I'm going to say is that our 16 yr old made his first RRSP contribution tonight. He made his full allowable contribution for 07. His income tax refund cheque will go into the account and it will make about half of his max contribution for this tax year (08). :cheesygri

kudos to him, he has a bright future ahead!

[Thalo]

Do banks make more money off of 'deposits' (ie: GICs), or do they make more money charging 2-3% MERs on mutual funds?

A bank gets a $1000 deposit at 4%, they lend it out on a 5-year mortgage at 5.5%. They make 1.5%.

A bank sells $1000 of mutual funds. They take a 2.5% MER, 0.5% of which actually is the cost to run the fund, and the other 2% is profit. They make 2%.

So why do banks push GICs so hard? Or are there really that many Canadians who have always bought GICs, and always will buy GICs for their RRSPs?

From a bank salesperson's perspective, non-index equity funds pay better than GICs, so I would assume they are more profitable to the bank.

[CSK'sMom]

kudos to him, he has a bright future ahead!

Hopefully. We're really determined that our kids don't end up like so many of the 20-somethings these days with credit card debt up the butt and not much else. Both our boys have RRSP's set up and are making their contributions. At this point they are thinking of it as their house downpayment accounts.

[nobody1234]

CSK, I don't know what type of income your sons have but wouldn't it be better for them to defer the tax credit until they are (presumably) in a higher income bracket in a few years? Or is that asking too much discipline out of a 16 year old?

[mcewen]

CSK, I don't know what type of income your sons have but wouldn't it be better for them to defer the tax credit until they are (presumably) in a higher income bracket in a few years? Or is that asking too much discipline out of a 16 year old?

It is possible to defer the deduction until a more convenient time.

[CSK'sMom]

Yes nobody, as mcewen said it's entirely possible. I just did their income taxes last night and with their present incomes (roughly $6k for the 16 yr old and just over $9k for the 18 yr old) we have choosen not to defer at this point. They aren't contributing for the tax advantages, they are doing it for the compounding. To put it in perspective the 16 yr old's max contribution for 07 is $188...