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Discussion Starter #1
hi all,

i want to max out (or come close to maxing out) my rrsp this year before the march deadline, but i haven't had time to do a thorough check of how my assets are allocated, or to decide on which securities i want to buy. but i'd like to get some more money into a new rrsp account i'm opening at questrade (i have an existing rrsp account at TD) for the current tax year because i'll try to figure out what i want to buy within the next couple months.

what's a good place to park my money for the time being? is this even advisable, or should i just wait until i've decided and then contribute to next year. point is i'm trying to keep my money invested for as long as possible, that's why i might sound a little impatient, haha.

any thoughts? thanks!
 

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You can always contribute and keep everything in cash.
Some brokerages (like Scotia iTrade) pay a small interest on large cash balances held inside RRSP.
When non-registered savings account interest rates are so negligible, I don't see any harm in keeping the contribution in cash until you make up your mind.
 

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Discussion Starter #5
so does this actually make sense to park my money in my rrsp for the next couple months before i'm ready to invest it, or should i just wait to contribute for next year? i'll have more contribution room next year if i don't contribute now, because of the rollover. or am i missing something? any disadvantages to contributing to next year as opposed to this year?
 

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mostly your basic income related ones. easy to answer if you understand the RRSP rules.

if your income will be higher next year and take you into a higher tax bracket, then maybe wait.

though, tax rates are dropping for next so, so maybe don't wait.

what will you do with the money this year? if you save/invest, then you will owe tax on the earnings (always a costly venture!). if you spend it and help the economy, then I will be alot happier as there will be more used products on the market that I can buy cheap. I will also 'gain' on you relatively since I am saving and not spending...
 

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You can contribute now to your RRSP to shelter income from taxes, but that doesn't force you to deduct that amount on your 2009 (or even 2010) return. Indeed, if expect your income to be higher in a future year (so that you hit the next tax bracket), you might elect to deffer the deduction so that it will have a more significant impact on your tax rebate.
That deferring strategy only makes sense if your TSFA is maxed-out (10K contributed already).
 

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Discussion Starter #8
Thanks for all the replies everyone. If I use the money for investing, then while there may be tax on the earnings, it will be deferred in the RRSP.

By " leave it in cash" does that mean I can just put money into the rrsp account and report the contribution thereby obtaining the tax refund. Meanwhile, I can decide where to invest shortly after march 1, right? I looked into the 90 day ing GIC but I think I will have made a decision before 3 months
 

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By " leave it in cash" does that mean I can just put money into the rrsp account and report the contribution thereby obtaining the tax refund.
Yes, the contribution into the RRSP account matters for tax purposes - not what you do with the contribution.
Meanwhile, I can decide where to invest shortly after march 1, right?
Right
 

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Thanks for all the replies everyone. If I use the money for investing, then while there may be tax on the earnings, it will be deferred in the RRSP.

By " leave it in cash" does that mean I can just put money into the rrsp account and report the contribution thereby obtaining the tax refund. Meanwhile, I can decide where to invest shortly after march 1, right? I looked into the 90 day ing GIC but I think I will have made a decision before 3 months
Yes. You can simply park funds inside a RRSP account in cash. You can report the RRSP contribution and obtain a deduction against your 2009 income.

If you'll make your investment decision before 90 days, you can opt to keep it in a high interest savings account.
 

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Yes. You can simply park funds inside a RRSP account in cash. You can report the RRSP contribution and obtain a deduction against your 2009 income.
I didn't know that!

Is there any time limit to acting upon this cash? I imagine it makes no interest while parked there. Are there fees to do this?
 

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Discussion Starter #14
Thanks for all the helpful advice!

I know, i need to take the time to figure out where i want to invest. As of right now, I've already parked some money in my TFSA that i haven't used yet, so i'd better get on it!
 

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Keeping your money invested and profitable is always a tricky thing and one has to be very careful to do that. This is due to the fact that we often see things that glitter like gold but as we know "All glitters are not Gold :)". Following are some tips about investing the money in right place:

1. Always go for least risky investment even if it is least profitable but consistent
2. Never involve in any wrongful activity
3. Keep your eyes open about new things and try to find all pros and cons

Hope this may help.

Thanks.
__________________
data entry online jobs
 

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I have a quick question regarding ING's RRSP 90 day GIC (3%).

If I setup an account with ING, placed 5k into the 90 day RSP @3%, how do I then transfer all of my RSP funds to my TDW RSP account after the 90 days? There is no transfer fee?

Also, if I wanted to take cash from my TDW account (already in RSP) would I have to pay a transfer fee from TD to ING? I could not locate the transfer fee on their commission/fee page.

Thanks!
 

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I have a quick question regarding ING's RRSP 90 day GIC (3%).

If I setup an account with ING, placed 5k into the 90 day RSP @3%, how do I then transfer all of my RSP funds to my TDW RSP account after the 90 days? There is no transfer fee?

Fill out the account transfer form on the TDW website. ING should not charge you a transfer fee. (It's your responsibility to first verify all this).

Also, if I wanted to take cash from my TDW account (already in RSP) would I have to pay a transfer fee from TD to ING? I could not locate the transfer fee on their commission/fee page.

Thanks!
TDW will charge you a transfer fee of $135. It is clearly mentioned in the fee schedule:

http://www.tdwaterhouse.ca/apply/forms/521778.pdf
 
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