What to do with tax refund from RRSP contributions?
What do you folks do with the refund you get from your RRSP contributions?
Let's say you deposit $10K into your RRSP and assume a 30% Marginal tax rate, giving you back $3000. These are just the deferred taxes, obviously - you will have to pay them back to the government when you retire. What would you do with the $3k? Just trying to figure out how I should be handling this. Options I've thought about:
- put it in a TFSA GIC or other guaranteed return vehicle (or could take a riskier approach with the money I will eventually have to pay the govt with a stock)
- redeposit it into my RRSP, triggering another refund of ~$1K (then what to do with that? re-re-deposit? when does this cycle end?!?!?!)
- stick it in a taxable savings account until I retire
I'd love to hear your thoughts on my options, and if you have something that I haven't considered, please throw it out there! What do you do with your refunds?
Let's say you deposit $10K into your RRSP and assume a 30% Marginal tax rate, giving you back $3000. These are just the deferred taxes, obviously - you will have to pay them back to the government when you retire. What would you do with the $3k? Just trying to figure out how I should be handling this. Options I've thought about:
- put it in a TFSA GIC or other guaranteed return vehicle (or could take a riskier approach with the money I will eventually have to pay the govt with a stock)
- redeposit it into my RRSP, triggering another refund of ~$1K (then what to do with that? re-re-deposit? when does this cycle end?!?!?!)
- stick it in a taxable savings account until I retire
I'd love to hear your thoughts on my options, and if you have something that I haven't considered, please throw it out there! What do you do with your refunds?