5 RRSP Mistakes YOU MUST Avoid

[@andrewmccoll1582]

2 major exceptions to the "hold till retirement rule" in RRSPs is the Homebuyers program and the Further Studies program for young people.

[@HKitanoru]

Love your videos! So helpful, and very useful! Thank you so much!

[@ParallelWealth]

Thanks!!😊

[@daved6464]

We always use our RRSP return for vacation. Need to live a little. Party on.

[@kartiknathan7765]

Not choose successor just like TFSA?

[@kiwionarope]

Im about to max out my RRSP, but my company also puts money into the Union plan I have. Once my RRSP is maxed, does my company plan have to stop?

[@franciscoramone1643]

hello, is 55k gross salary worth it to invest in a RRSP? Thanks, I am learning a lot from your videos!

[@ParallelWealth]

It's borderline but definitely put some of your savings there. Hard to say without the whole picture...but maybe split saving between RRSP and TFSA.

[@ericandjandahle9017]

Thanks for all the video's I love your content! I have failed to avoid one of the points that you talked about... I forgot to factor in pension contributions while maxing out my RRSP. Luckily I'm not much over and the over contribution was done in the first 60 days of 2022. To avoid over contribution penalties can I claim half of what I contributed in the first 60 day of 2022 towards 2021 tax year and this will leave me the second half to claim when I'm doing my 2022 taxes? or if I claim any of my first 60 days do I have to claim it all?

[@ParallelWealth]

You bet

[@paulayoung2387]

I would like you to include info for singles too. Singles now make up 52% of the population!

[@ParallelWealth]

Paula, I have mentioned it before in comments but many more mistakes and tips for couples - just the way the current tax system is built. We are working on a video focused on mistakes and tips for singles. So stay tuned.

[@MegsCarpentry-lovedogs]

@@ParallelWealth Good because as a single person a vid addressing single stuff would be awesome. Has the vid been made by now? It has been 3 months since this video was made....if it is made, please let me know what the name of the vid is. I am enjoying your videos and have shared with others to show support to your channel and important work.

[@eyesuckle]

Yeah, I've got to say that your (Adam's) videos are uniformly excellent and helpful, but this is the first actual gaffe I've seen in any of them. You left some pretty obvious questions unanswered. For example, does naming a beneficiary in your RRSP who is NOT a spouse confer any kind of tax benefit to that beneficiary? What about siblings or children? If they are named, does it go to them tax free? After all, even if you have been married for your entire adult life, one of the two spouses is going to die first. The survivor is then faced with the problem of whom to leave their RRSP to--and it's unlikely to be another spouse. Anyway, this is the first and only complaint I've ever had with any of your excellent videos. Keep up the great work!

[@allancaterio7651]

For Filipinos retiring in the Philippines, my understanding is that RSSP will be taxed at 25%

[@raybauwens3872]

It is very hard to get your RRSP out they do not want to part with YOUR MONEY. I have got only 1 % return in the last 10 years 🤬

[@ParallelWealth]

If this is the case, you might want to look at other investment firms. The returns you state are terrible and they shouldn't hold back your money.

[@nevermyluv7838]

What happens if my RRSP beneficiaries are my children? I am separated for a long time but not formally divorced.

[@ParallelWealth]

Taxes paid on death and remainder goes to your kids

[@nevermyluv7838]

@@ParallelWealth Will it change or make a difference if we are divorced? Then, my beneficiaries will be my sons.

[@ParallelWealth]

@@nevermyluv7838 if you are divorced then you need to list your sons or someone else as beneficiary. You cant list ex as successor.

[@fembot521]

Thank you for letting everyone know that the RRSP does not automatically roll over to your spouse or partner. You must name a beneficiary! And check and double check to make sure it’s done. Sometimes people drop the ball on these types of things and it’s up to you to make sure it’s done properly.

[@lancewindsor8077]

Is it possible to transfer money from a LRSP to a LIF (within 2 months) then to an RRSP ?

[@ryanvanderheyden3324]

Does a lira account affect your rrsp contribution limits like a pension adjustment would

[@DL-bl6qp]

From my understanding, if you are in a province that lets you "cash" out part of your LIRA upon retirement, you will need RRSP room equal to the amount of the LIRA you are "cashing" out. It goes into the RRSP.

[@reiniertl]

There is not such thing as too much money in your RRSP. If you can contribute without sacrificing too much of your lifestyle it makes sense to top up the RRSP, if you can use the tax return to top up your TFSA even better. People concerned about paying taxes from the their RIFF do not understand that the more tax they pay the better they did over the years. Contributing as early as possible and having a good investment plan are the two things that can make your RRSP skyrocket. When you retire just use the money and enjoy it. Worrying about taxes now will sour your life and probably screw up your retirement. The tax man is unavoidable just look at the money in your pocket, that is the one that matters. The more tax you pay the more you put in your money too but for that to happen your RRSP must have huge amount of funds.

[@seanfrank4158]

So I've been putting my tax refund back into my TFSA now for a few years. Is there a better option between the two? Is putting it into my TFSA better than putting it into my RRSP?

[@Lioness_UTV]

All experts indicate maxing out your TFSA so you have a balance between RRSP and TFSA

[@ParallelWealth]

@@Lioness_UTV agreed. Unless you are in a very high tax bracket currently and can use the tax breaks, use the refund to build your TFSA.

[@missygilly9917]

I don’t have much room left in my RRSP’s, and thinking TFSA where I have all kinds of room (since I haven’t ever contributed) is perhaps better option to invest in? Also, fees in mutual funds held inside RRSP products (bank) will eat up some of my funds. Versus TFSA, no fees or much lower fees, with online broker & self-directed investing. Making the switch to TFSA is what I’m researching now. Not to mention, RRSP investing & refund are after tax monies to begin with! Caveat, I’m already retired. A balance in both RRSPS & TFSA, would be ideal, right?

[@aejosie]

Is it better to contribute to my tfsa instead of an rrsp as i know my retirement income will be greater than my current income?

[@ParallelWealth]

In that case likely. But if you can get good tax breaks now don't rule out the RRSP.

[@rjpdividend]

Adam, great content. Question for you. If you list a non-spouse as a beneficiary (ex adult children , they will still get the funds right away (vs Probate) but they will need to pay taxes on those funds, is this correct?

[@ParallelWealth]

Correct - but only taxes on growth from date of death to transferring the account. Video coming out this Friday on this topic.

[@thomasj0007]

@@ParallelWealth can you provide a link to the video?

[@ParallelWealth]

@@thomasj0007 kzbin.info/www/bejne/mWG0i4GLiNR9asU

[@enduser2347]

Excellent advise. Specially identifying a beneficiary to the RRSP investment

[@killersparklesj6150]

Do you have an office in Toronto?

[@ParallelWealth]

No only in the Vancouver area. But we help people right across Canada.

[@1212aoa]

Oh dear there is so many ads 🙄

[@ParallelWealth]

Annie, I know...sorry. Having ads helps get the videos out to more ppl through the algorithm. Hopefully the content offsets all the ads...😉

[@haukenhung]

have you heard that there is stategy for accredited investors to transfer your rrsp to your TFSA with out tax penalty?

[@ParallelWealth]

Lol yes there are always companies looking at ways to market for new clients. Just be careful of potential CRA rulings...

[@BusterDarcy]

I’ve just been contributing to and investing through my tfsa so far since I’m not yet at my limit (recently reset it to put a down payment on a fist home) but always wonder if I’m right to wait til I hit my limit before bringing in my rrsp. Especially now since my salary has increased considerably in the last year, and my monthly investment amount with it.

[@ParallelWealth]

Look to use some RRSP if your income is over $50k or so. It's a loose measuring stick we use for this. It's not exact science, but it works fairly well in general terms.

[@joeyb8727]

I'm sorry, but I LOL'd at #3...I got never ending room :|

[@michaelboom7704]

So I put my RRSP in the estate, so should I give it to one person instead of a percentage to different people in the family?

[@ParallelWealth]

If you have no spouse or common law partner and want to spread it across a few people, this is likely the best strategy. You will pay probate, but it's a nominal number in the big picture.

[@fembot521]

Depending on the amount in your RRSP you will pay an Estate Tax on the value of the Estate, at least here in Ontario. It’s a hefty sum. Also if it goes to the Estate you will pay taxes on it if no one is named as beneficiary. Then it will be distributed according to your Will.

[@ParallelWealth]

@@fembot521 Yes probate and taxes will be due - the taxes part is unavoidable if you don't have a spouse of CL partner.

[@pascuapao]

6 mistake: Putting all savings into RRSP. The design of RRIF income guarantees that all the money inside RRSP will be gone in the 90s even with max contributions. It can dry up much earlier with taxes and more withdrawals. Having no money left to afford the bills if you live longer than 80s or 90s is a worse situation to be in. There's a different saving plan I know of thats better than RRSP and even TFSA in regards to not run out of money and performs better