Hmm.... One of them lazy days. So the only thing I can do is work! But before I go do... ugh... manual labour, let me post.
Dear Munnybagz,
Can you talk about spousal RRSPs during 2007 if both people have room to contribute. And how it impacts on the husband's taxes and if it impacts the wife's at all.
Anonymous
First off, any money you put into a company RRSP is untaxed. You don't need a spousal RRSP if you're both maxing your company RRSP contributions. But other than that, any contributions are good. If only one person is contributing, that will not end up as enough!
Remember, any money that you can save is good. It's better to be able to double your RRSP contributions than have a latte every day. I'm kind of going off track here, but it's good to stress the point that you should always contribute if you can. But it's always better to max your company RRSP contributions first.
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- I am 13. I want to be a financial advisor when I grow up. They say I have 1200 characters, so I'm gonna utilize this space. Hmm, make sure to refer this blog to other people, because if no one goes to my site, I'll eat this coin I'm holding. There's a story behind this coin. The year was 1942, and the war was at it's peak. Young Jeremiah, the ammo boy for troop 17b, was just running across the street to give the gunners some ammo. Well, what happened next was a blur. This coin was Jeremiah's lucky coin, and a bullet that had been fired at him hit him right in the pocket, the exact spot where his coin was. Now normally, coins aren't very strong, as in this case, and the bullet pierced the coin and killed Jeremiah. Strawberry ice cream is best when they have berry chunks in it, and Homer is my favourite Simpsons character, followed by Apu.
1 comment:
To add a little depth to the reply...
First of all, the whole point of spousal RRSPs is to even out retirement income (thus taxes) for spouses. Generally you contribute to a s.rrsp if you make significantly more money than your spouse (ie. your spouse is a homemaker). Like Munnybagz said, if you both max your rrsps, there isnt anything to contribute to. Note that if you contribute to a s. rrsp, you take away from your own contribution room.
As for "always max your rrsp", many will argue not to do this as maxing your mtg payments is also important. There is no answer as to which is better. It comes down to what you expect your ROI to be and your risk tolerance.
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