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Opening RRSP for first time. Recommendations? what to look for?

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  • Nov 25th, 2013 1:22 pm
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[OP]
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Apr 18, 2010
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Opening RRSP for first time. Recommendations? what to look for?

Hi I'm looking to put a portion of my tax return in RRSP. Can any of you recommend which financial institution provides the best rates or other attributes? Other best practices I should be aware of or any useful advice? I plan on putting in $400 right. I'll be the only one making contributions to it for now.
15 replies
Deal Expert
Mar 25, 2005
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Read up on what an RSP is first.
Sr. Member
May 3, 2013
549 posts
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Toronto
It is good to hear that you are putting a portion tax return to RRSP (instead of blowing it all away). First thing to consider is the FEES. A best practice is to contribute on a pay cheque basis, the account will grow quicker than you think! Do some math prior to opening an account to see if it's worth the fees vs returns, etc. Bottom line is that you will be paying less taxes, but I'm talking about when to open the account and pay for the fees. If you open the account now, you'll be paying the fees for 6 months (till year end) vs. opening the account in December.

Learn more about the different offerings among the institutions first.
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Dec 5, 2008
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realtorhome wrote:
Jun 13th, 2013 9:07 pm
It is good to hear that you are putting a portion tax return to RRSP (instead of blowing it all away). First thing to consider is the FEES. A best practice is to contribute on a pay cheque basis, the account will grow quicker than you think! Do some math prior to opening an account to see if it's worth the fees vs returns, etc. Bottom line is that you will be paying less taxes, but I'm talking about when to open the account and pay for the fees. If you open the account now, you'll be paying the fees for 6 months (till year end) vs. opening the account in December.

Learn more about the different offerings among the institutions first.
In short...read about RRSP as Kasakato said.
Deal Addict
Dec 27, 2007
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Edmonton
What kind of fees are there?I'm curious as I don't have an RRSP as well.
Deal Expert
Mar 25, 2005
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dj_rice wrote:
Jun 13th, 2013 10:27 pm
What kind of fees are there?I'm curious as I don't have an RRSP as well.
Same as any registered account or brokerage account for that matter. For ex: Opening fees, close account fees, annual fees, transfer fees, trade commission, MER on MFs.
Member
Jan 24, 2007
318 posts
6 upvotes
RRSP is like a bucket you can fill it in with whatever financial product you like

A little bit of stocks (read on stocks)
A little bit of GIC's (read on GIC's)
Some mutual funds (read on mutual funds)
Some ETF's (read on ETF's)
Tiny bit of Cash (find a bank with a high RRSP savings interest rate)
[OP]
Deal Addict
Apr 18, 2010
4698 posts
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Toronto
Oh totally forgot about the fees. It might be good to wait until December to open one up - I take it I only pay for one month of fees and still can claim it for my 2013 return next year. Maybe I'll put my refund in my TFSA as well as other contributions and then withdraw it to put in an RRSP come December - is this advisable? I won't really have any non-cash items in my rrsp. For stocks I have a TFTA account with Questrade where I don't face any fees and I'm sheltered from any capital gains taxes. I pretty much just require a tax shelter on top of having another "savings account".

And yes I'll read up more on RRSPs.
Sr. Member
May 3, 2013
549 posts
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Toronto
glover78 wrote:
Jun 14th, 2013 10:45 pm
Oh totally forgot about the fees. It might be good to wait until December to open one up - I take it I only pay for one month of fees and still can claim it for my 2013 return next year. Maybe I'll put my refund in my TFSA as well as other contributions and then withdraw it to put in an RRSP come December - is this advisable? I won't really have any non-cash items in my rrsp. For stocks I have a TFTA account with Questrade where I don't face any fees and I'm sheltered from any capital gains taxes. I pretty much just require a tax shelter on top of having another "savings account".

And yes I'll read up more on RRSPs.
You have until Mar 1 2014 to contribute and claim it for 2013.
Regarding withdrawals from TFSA, it depends if you want to re-contribute to your TFSA. Remember that withdrawals from your TFSA this year will be added to the beginning of the following year. So if you withdraw in Feb 2014, that TFSA contribution room won't be available until Jan 2015 (as opposed to withdrawing it Dec 2013 and having that contribution room available Jan 2014).
Sr. Member
May 3, 2013
549 posts
126 upvotes
Toronto
Kasakato wrote:
Jun 13th, 2013 10:32 pm
Same as any registered account or brokerage account for that matter. For ex: Opening fees, close account fees, annual fees, transfer fees, trade commission, MER on MFs.
Some institutions have them monthly, some quarterly. Some waive it after a certain amount, some just waive it. Depends in the institution's business model.
[OP]
Deal Addict
Apr 18, 2010
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Toronto
realtorhome wrote:
Jun 15th, 2013 12:42 am
Some institutions have them monthly, some quarterly. Some waive it after a certain amount, some just waive it. Depends in the institution's business model.
Any good ones that just wave it?
[OP]
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Apr 18, 2010
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Anonymouse wrote:
Jun 17th, 2013 6:58 pm
Some people advise that you should invest in a nonregistered account or TFSA at first, and later (say, when you are 40) start contributing to your RRSP. The reason is that the tax deduction is worth a lot more to you when you are making $80k than when you are making $40k, because you are in a higher tax bracket.
I plan on doing both. I want a tax shelter now since I'm starting to owe - I narrowly avoiding owing this time by using a credit I almost forgot to use. It won't be there for me next year so I need something else to prevent me from forking over cash to Canadian Uncle Sam.
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Mar 25, 2005
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glover78 wrote:
Jun 17th, 2013 10:31 pm
I plan on doing both. I want a tax shelter now since I'm starting to owe - I narrowly avoiding owing this time by using a credit I almost forgot to use. It won't be there for me next year so I need something else to prevent me from forking over cash to Canadian Uncle Sam.
Paying tax at the end of the year is a good thing. I would forgo an RSP deduction if it makes sense to take it in the future, unless cash flow presently is an issue.
[OP]
Deal Addict
Apr 18, 2010
4698 posts
483 upvotes
Toronto
Kasakato wrote:
Jun 17th, 2013 11:00 pm
Paying tax at the end of the year is a good thing. I would forgo an RSP deduction if it makes sense to take it in the future, unless cash flow presently is an issue.
Yea I know. But in my case this year, I thought I was owing but in reality I was to get a return. It would've sucked if I ended up cutting the gov a cheque when in reality they owed me.

So I take it I can carry over my RSP deductions? Like if I don't claim my 2013 deductions next year, I can claim it say in 2020?
Deal Expert
Mar 25, 2005
21262 posts
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glover78 wrote:
Jun 19th, 2013 12:56 am
Yea I know. But in my case this year, I thought I was owing but in reality I was to get a return. It would've sucked if I ended up cutting the gov a cheque when in reality they owed me.

So I take it I can carry over my RSP deductions? Like if I don't claim my 2013 deductions next year, I can claim it say in 2020?
Correct. Read the CRA site for contribution rules.

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