The more I about how my parents' RRSP and RIFs went down after their passing, the more I am in favour of TFSAs.
Mom and dad invested well and invested a lot. When they passed far far too much money went to the Government for tax purposes. They worked so hard for that money and they would have been sick at how much went away.
I do place blame on their investment manager. He should have been advising them to withdraw the maximum, without penalty, each year in their last 5-7 years. This would have reduced the tax bracket they were in and greatly reduced how much they paid for taxes. They could have spent it on themselves, put it in a TFSA, or heck, put in under their darn mattress. The amount they 'gained' having it in investments was completely obliterated by the tax penalty.
I added a tiny bit to my TFSA at the end of last week. $1000. Not anything life changing, but a little bit to add to what I have tucked away. This money was mostly through loose change over the past 8 or so months. Amazing how it can add up if you buy something with a $5 or a $10 and put the change in a jar.
I will try to do another $1000 before year end.
Do you lean towards TFSA or RRSPS (or your country's equivalent?)
1 comment:
I think this woud be our Roth, where being over 50, we can each put I think $6,500 in and th einterest eanred will be tx free since it is after tax money that it funds. We also have 401K's, whihc is a tax deferred account, usually thorugh employers, and being over 50 we can put up to $26,000 in, but will ay taxes when we withdraw. We are trying to max both each year.
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