RE:RE:RE:RE:RE:RE:RE:Take profit? Or hold..Hey bcsc
Thanks for the reply and for clarifying your opinion. I actually totally agree with you. I've been retireed for 8 years and my wife and I live off dividend income. My wife was stay at home so I always contributed to either my RRSP or a spousal RRSP. We have done very well with our investments and will be facing OAS clawback once we both convert to RRIFs.
In hindsight, I wish I had stopped contributing to the RRSPs earlier. It bugs me a tiny bit (but not hugely) that the dividends and capital gains that were accumulating in the RRSPs will now be withrawn as income.
As an aside, I wasn't too impressed by Cheadle's post directed at. (see below). I obviously totally disa gree with him.
Take her easy
Sarge
His post:
Clearly you've never done your CFA Sarge.
Time value of money? Compound interest? Staggered withdrawals?
If it's your "Retirement" income and you only need a small amount to live on, it's in a very low tax bracket when withdrawing.
Also many creative options to move money into non-equities still within the RRSP and buy real estate and various other 'usable' assets in retirement.
Such linear thinking. Smarten up. bcsc wrote: Hi Sarge,
Sorry for any confusion, my comment was not neccessarily directed at anyone or any post in particular, just adding to the topic in general. As you can probably tell I think we have been oversold on the wonders of RRSPs. However, as a newly retired self employed person (for the last 25 years), I believe the primary benefit is the fact that it induces one to save in the first place and makes withdrawls a hassle. I believe that is the biggest problem using TFSAs as a retirement vehicle, its far to easy to withdraw funds.
SargeX wrote: I'm not sure who you are directly this at. What I said was that if the stock is in a non-reg account, then you pay tax each year at a reduced rate because of the dividend tax credit. If it is in an RRSP, when you withdraw that dividend, it is treated as income and taxed at a higher rate.
bcsc wrote: Is it not a fact that by holding an equity that pays an elligible dividend in your RRSP that you are in fact paying tax each and every year since tax is paid at the corporate level and since you hold in a registered account you cannot claim the dividend tax credit ?