tag:blogger.com,1999:blog-5465015914589377788.post6343867257348957209..comments2024-03-20T09:32:16.592-04:00Comments on Michael James on Money: A Proposed Break on RRIF Withdrawal TaxesMichael Jameshttp://www.blogger.com/profile/10362529610470788243noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-5465015914589377788.post-71339443079186518162020-10-31T19:36:46.039-04:002020-10-31T19:36:46.039-04:00The comment above is a reply to Canadian Capitalis...The comment above is a reply to Canadian Capitalist's comment:<br /><br />My feelings about this are summed up perfectly by this comment on the Wealthy Boomer:<br /><br />" Oink Oink! I saved my money in an RRSP and I knew the deal going in and I enjoyed the deduction from income at that time. But Oink Oink, I now want a better deal.<br /><br />And, you know, I can't save a dime in a normal non-registered account. I am addicted to tax breaks. Oink Oink!<br /><br />Let someone else pay the tax! Not me!"<br /><br />Couldn't have put it better myself. Oink! Oink!Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-25409344593244675652010-04-25T12:00:42.162-04:002010-04-25T12:00:42.162-04:00@Maltese: For some very low income people, avoidi...@Maltese: For some very low income people, avoiding RRSPs can make sense because of the GIS clawback. However, I suspect that the majority of people who avoid RRSPs do so for much simpler reasons. Two that come to mind are 1) saving is hard, and 2) anything other than cash in a bank account is complicated and scary.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-18359850697589621552010-04-25T11:47:46.383-04:002010-04-25T11:47:46.383-04:00Many individuals don't understand the RRSP sy...Many individuals don't understand the RRSP system at all. They don't think it's fair that they get taxed on the money when it is withdrawn. Often I hear people say that RRSPs are a rip-off so they don't bother to put money into them. Opinions such as this make me crazy and no amount of explanation convinces these individuals to change their minds. <br /><br />Michael, I love your simple explanation on the RRSP system and am totally in agreement that it shouldn't be changed. As someone who is getting closer and closer to RRIF time, I also like your idea of allowing a small amount to be withdrawn tax-free.Maltesenoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-1711573939502556542010-04-21T11:36:24.776-04:002010-04-21T11:36:24.776-04:00@CC: Hilarious! I'm starting to get tired of...@CC: Hilarious! I'm starting to get tired of the number of proposed tax changes I see that clearly favour old rich people. Most of these proposals would benefit me, but they still bother me partly because they seem like bad policy and partly because they are dripping with unmasked greed.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-3241120731656152102010-04-21T09:54:50.131-04:002010-04-21T09:54:50.131-04:00@Omarf: You make a good point. Significant chang...@Omarf: You make a good point. Significant changes to RRSP rules amount to a retroactive punishment for those who optimized their finances based on the original rules.<br /><br />@Big Cajun Man: I suppose that someone would benefit if we all had to keep track of significant amounts of accounting information for decades. However, this would benefit a few at a much larger expense of many.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-29789908223568763172010-04-21T09:24:50.922-04:002010-04-21T09:24:50.922-04:00It's an interesting concept Mr. Dunn proposes,...It's an interesting concept Mr. Dunn proposes, but the bookkeeping is where it would fall to it's knees.<br /><br />Making the RRIF income, tax free in small amounts might be an interesting way to deal with it. Might be more interesting if you <b>lost</b> money on investments in your RRSP, if that loss increased your RRSP room (if I lost $2000 on a stock sale, my RRSP limit for the next year would be goosed up $2000), but again, the bookkeeping on this might be horrendous as well.Big Cajun Manhttp://www.canajunfinances.comnoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-86394277836464275222010-04-21T08:31:37.119-04:002010-04-21T08:31:37.119-04:00Thank you for being one of the few people who seem...Thank you for being one of the few people who seem to understand the RRSP system as an income deferral system. The tax break was supposed to be that you would take the income in your retirement years when your marginal tax rate would be lower. Changing the rules now would allow a form of double dipping.<br /><br />I would be upset if these rules changed. I have made decisions not to invest much in an RRSP based on the rules as they stand. Changing the rules would give unfair advantage to others, and penalize me because I would have to pick up a greater share of the government's expenses through my taxes.OmarFhttps://www.blogger.com/profile/04099058655900354907noreply@blogger.com