Comments on: 2010 RRSP Investment Ideas, First: Prepare Your Meeting

By: The Financial Blogger

The Financial Blogger — Tue, 22 Jun 2010 16:04:20 +0000

@David,

If you move your DPSP into a RRSP at your financial institution, you will be able to invest in both Cdn and US stocks. There won’t be any capital gains.

I don’t suggest you cash in your 35K since you will pay a lot of taxes for nothing (unless you really need the money for a specific reason).

I hope this helps!

By: David

David — Tue, 22 Jun 2010 03:49:48 +0000

I have $35,000 in a deferred profit sharing plan. Since I am will no longer be working for this employer, I have a decision to make. If I take the payout in cash, my marginal tax rate will be 30% and I will be left with $24,500. This give me cash in-hand with which to invest in the US stock markets. If I just transfer the funds into a RRSP, the amount will be tax free, but I will not have the cash. Is it possible to switch over the DPSP to my financial institution as a RRSP and then invest in US stocks? Would any capital gains I make be taxed at a lower rate.

By: Tom W

Tom W — Thu, 14 Jan 2010 15:46:51 +0000

Thanks for the advice! I’ll review this. I’m also deciding whether more $ should go towards TFSA vs RSP. My initial opinion is that TFSA contribution should come 1st since the gains are tax free while the RSP contributions are tax deferred.

By: Catarina

Catarina — Wed, 13 Jan 2010 22:02:51 +0000

I’ll take a look. Sure I will have some questions

By: The Financial Blogger

The Financial Blogger — Wed, 13 Jan 2010 18:50:01 +0000

@ Tom,
I think preferred shares are a good option since the “fear” around banks are gone in Canada. They give a great dividend and are mostly issued by strong companies.

@ Catarina,
you can start with :
http://www.thefinancialblogger.com/how-to-start-investing-%E2%80%93-a-di-growth-investment-strategy-part-1/

this is a 8 part where you learn how to start investing on your own

By: Catarina

Catarina — Wed, 13 Jan 2010 16:43:03 +0000

Hummm allow free cash flow into a systematic investment!?!? that’s too sophisticated for me. I really don’t know how to start that system. Any advices or any readings to recommend? Thanks!

By: The Financial Blogger

The Financial Blogger — Wed, 13 Jan 2010 16:15:28 +0000

@Catarina,
I think you should reach an balance between paying down your mortgage and investing for your retirement.

the best way to do it is to establish your budget and allow your free cash flow into a systematic investment towards your RRSP account. With your RRSP tax refund, you can apply it on your mortgage

By: Tom W

Tom W — Wed, 13 Jan 2010 15:55:29 +0000

Hi TFB! Great website and interesting information for investors.

With RSP season – I’m looking at having higher yields with appropriate risk suitable for my investment objectives , I wanted your thoughts on the latest investment fad – reset preferred shares.

By: Frank

Frank — Wed, 13 Jan 2010 15:54:05 +0000

Do not wait last minute to contribute. Regular investing puts the power of compound growth on your side. Yes, the earlier you start, the more you may have in the future. Have an investment strategy.

By: John

John — Wed, 13 Jan 2010 15:51:31 +0000

I think I am going to get out of my 2 mutual funds bought a few years ago. The fees are quite high and the returns are quite bad. I thought that eventually the 2 funds will do better… I will reinvest the tax return into diversified MF ( no way I am building my own mutual fund hehe)

My investment strategy is quite bad for the moment (I don’t have a strategy for the moment). I will have to schedule with my financial advisor to help me put some orders before he’s getting too busy with the RRSP season!