Quote:
Originally Posted by yameen
my tfsa is maxed out and with the current market, i believe the % return will outweigh putting money into my mortgage. however, my question is, do you people try to max out your rrsps before putting money into a non-registered taxable account? I like having the luxury of withdrawing money from the cash account as opposed to having money locked into rrsps until retirement. but filing capital gains will also deduct a big chunk of what you earn whereas in rrsps you dont file your capital gains until you retire. another benefit of me buying rrsps is it will allow me to lower my tax bracket (which i dont even know what it is but i'm making $100-110k). what are peoples thoughts on this?
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In the long run, I cannot think of any rational reason for why you'd invest in a non-registered while you have RRSP availability. If you are withdrawing money for lifestyle though, you probably need to ask yourself whether it makes sense to invest that money in the first place and risk your principal on what might be a short time horizon.
If you have a big chunk to put in, you might consider not recognizing the entire RRSP contribution in one tax year since it can reduce your marginal tax rate quite a bit depending on your income level and the size of the contribution.
-Mark