RRSP or cash?

CRNKY

New member
Any of you guys work in a bank or something similar and could give advice on RRSP? I'm about to receive some money from wife's work and have the choice of cashing out and taking the +-35% tax hit, or put it in RRSP (don't have a penny in there). If I were in my 20's I would start the RRSP, but now I'm much closer to retirement, or death and it sound better taking the cash. I'm not sure what to do, I was taking care of wife for over 2 years, I don't have any income (only getting survivor's benefit since she passed away, which is taxable and everything else I got since are tax free) and I supposed to give them an answer ASAP. It will be a nice chunk of change, but if I have to pay the piper today or tomorrow, I rather get over it and pay today.
 
Seems like the RRSP is a good option in that situation, unless you need that money soon.
 
des rrsp/reer quand ta pas de revenu ça sert a rien ... au pire tu va être imposé au versement car il extrapole toujours un versement unique comme si c'était un entrée d'argent régulier mais tu va aller rechercher l’impôt payer en trop à ta déclaration 2019 ...

c'est juste de l’impôt reporté, tu finit par payer lorsque tu le retire (à la retraite) et si tu fait plus d'argent qu'actuellement, tu vas en payer plus ...
 
Ça dépend de combien tu vas déclarer durant l'année 2019

around +-10,000$ taxable income, only the survivor's benefit since I'm still not working as I still deal with paperwork at multiple places and other things. I'm actually not expecting to work at all this year, but that could change anytime, it all depends how fast I get over walking aimlessly every day thinking about not having a future since I don't have anyone to share it with. Anyway, that's a whole other thread.
 
I'm sorry for your loss, but honeslty you don't sound like someone that wants to be making this decision now.

If you've never contributed to your RRSP and you're closer to retirement than not, just take the money in the RRSP unless you've got an actual need or something you want to put the money towards.

1. Some are going to say save the space for when you're back at work and in a higher tax-bracket, but if you haven't contributed to your RRSP yet it's unlikely you'll get close to reaching your accumulated space.
2. You'll get some immediate cash on the next years tax return (even though not a lot on $10k income)
3. You can still withdraw from the RRSP at any time at the same taxation rate, there's really no need to rush the decision.

So unless you want to put this money in another tax-sheltered registrered account like a TFSA or want to use the money for something.
Just take the RRSP in account in your name and punt the decision until a later date
 
around +-10,000$ taxable income, only the survivor's benefit since I'm still not working as I still deal with paperwork at multiple places and other things. I'm actually not expecting to work at all this year, but that could change anytime, it all depends how fast I get over walking aimlessly every day thinking about not having a future since I don't have anyone to share it with. Anyway, that's a whole other thread.

t'es en bas de l'exemption à la base, prendre des reer n'aurra pratiquement pas de gain puisque tu ne paye pas d’impôt ... prend le cash. tu peux le mettre dans un celi si tu a pas besoin de l'argent et tu veux le faire fructifié un peu. Au pire si tu recommence a travaillé et que tu veux faire baissé ton taux d'imposition, tu achètera des reer a dernière minute
 
D'ou provient ce montant forfaitaire ? De son fond de pension ?
On a pas beaucoup d'information quant a tes plans futurs/retraite mais moi je prendrais le montant directement dans un REER, donc tu n'aura aucune imposition et le montant brut va fructifié à l'abris de l'impôt. De plus vu que tu as un faible revenu cette année, tu pourrais reporter ta déduction REER à une autre année où tu auras un plus gros salaire.
 
Remember that you don't have to invest the whole amount in a single strategy, that would be pretty dumb actually. I'd say

On 30k$, pay off any lingering high interest dept then:

1/3 in a long term low risk, low return RRSP (10 years plan)
1/3 in a short, high risk investment (2 to 5 year plan)
1/3 in high availability, low return such as a CELI...
 
Remember that you don't have to invest the whole amount in a single strategy, that would be pretty dumb actually. I'd say

On 30k$, pay off any lingering high interest dept then:

1/3 in a long term low risk, low return RRSP (10 years plan)
1/3 in a short, high risk investment (2 to 5 year plan)
1/3 in high availability, low return such as a CELI...

or separate in 1/4 and take 1/4 to do a little something for himself ... after these hard time ...
 
Yes I kind of wish they would give me like 6 months to decide, this is some kind of a retirement fund at work. Not a big fan of unexpected quick financial decision making when it should be looked at more before considering how to proceed.
 
I wish you the best getting through the pain of the loss.

Anyway, if you have the space, dump it in RRSP, even if it's just a basic savings account. Worst case scenario if you want to change your mind in 6 month when you could think a little more clearly, you pay the taxes that you would have now but if you decide to keep it in the RRSP you saved yourself from the government robbing you of your money.
 
Thanks guys I got an appointment with a financial advisor tomorrow to do the RRSP paper and decide how to cash it out while paying the least amount of taxes.

250Rocket Thanks, it will take a while, known her for almost 26 years, she was my BFF and wife. My avatar is her driver's license pic, cut it out since I had to cut it up anyway. :D
 
Ça dépend de combien tu vas déclarer durant l'année 2019

This. Toutes les autres reponses sont incompletes.

Le montant que tu vas recevoir sera ajoute a tes revenus imposables pour 2019. Ca depend donc de ton revenu actuel et du montant que tu recois.

Si ca te fait monter de tax bracket, mets le montant en haut du bracket dans ton RRSP.

Il faut faire attention de pas perdre ton supplément de revenu garanti si tu as plus de 65 ans ou ton allocation au survivant si tu as entre 60-64 ans.
Si tu cash out ton RRSP, ca va etre rajoute a ton revenu et tu risques de perdre ton status de faible revenu.

Bon courage.
 
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