tag:blogger.com,1999:blog-5465015914589377788.post6515210153040961262..comments2024-03-20T09:32:16.592-04:00Comments on Michael James on Money: Forgone ConsumptionMichael Jameshttp://www.blogger.com/profile/10362529610470788243noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-5465015914589377788.post-1325698177588038142013-12-03T19:11:15.366-05:002013-12-03T19:11:15.366-05:00@CanadianInvestor: Thanks. Glad you liked it. I...@CanadianInvestor: Thanks. Glad you liked it. I'd like to think that Gordon Pape might learn something from it, but that is probably too much to hope.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-32373900117752772752013-12-03T18:45:19.686-05:002013-12-03T18:45:19.686-05:00Excellent post Michael. An alternative perspective...Excellent post Michael. An alternative perspective can really help explain slippery subjects. Gosh I can't even find anything to disagree with! ;-)CanadianInvestorhttps://www.blogger.com/profile/05645767559302303541noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-46502595584845922202013-12-02T17:48:09.035-05:002013-12-02T17:48:09.035-05:00At least there are TFSAs now, so if you decided to...At least there are TFSAs now, so if you decided to draw out more before 65/other pensions kick in, and if you didn't need to spend it, you could re-invest it in a sheltered environment. I think it must have been brutal trying to weigh between taking it out in "low/no income years" between say 55-65, and leaving it in so the growth is tax-sheltered for longer.Bet Crookshttp://financialcrooks.comnoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-60238959422973291102013-12-02T17:12:46.110-05:002013-12-02T17:12:46.110-05:00@Bet Crooks: Halving your RRSP funds may be a litt...@Bet Crooks: Halving your RRSP funds may be a little pessimistic, but it's better than dreaming of getting the whole amount. If I retire short of 65, I'll need to figure out the best way to draw RRSP funds to manage my income to keep it smooth between before age 65 and after.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-49863749290850560472013-12-02T17:03:06.607-05:002013-12-02T17:03:06.607-05:00Interesting!
I find it tricky working through the...Interesting!<br /><br />I find it tricky working through the numbers for TFSAs and RRSPs because of the different taxation effects.<br /><br />In particular, I tend to over-estimate the hit our RRSPs will take when we have to start drawing out from them. But I find I feel more comfortable over-estimating because the government keeps throwing more wild cards into the equation: for example, now the ON government has that floating rate "tax" to help cover health care costs. If we take money out of our TFSA it won't result in us having to pay more for health care. If we take money out of our RRSP it likely will. Some day I need to check what the rules are around the government drug benefits for seniors too. I suspect we won't qualify for them because of RRSP income, if there is an income cap.<br /><br />I generally halve our RRSP funds before adding up our net worth. It keeps me from thinking we're ready for retirement yet. : )Bet Crookshttp://financialcrooks.comnoreply@blogger.com