RRSP Message Board - Msg: 12440585

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : RRSP

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: scouser who wrote (1)	1/2/2000 5:20:00 PM
From: Condor	Read Replies (2) of 22

Yah old Grubmeister yah! Yep, re the 20 % foreign content. I constantly exceed the 20 % and have checked into it. Here's some detail. You are charged, by Revenue Canada, 1% per month penalty on the amount above 20% in your RRSP. It is calculated quarterly and will appear as a deduction from your RRSP account. If you invest in, lets say, mutual funds or fixed incomes that pay from 6-18% annually then this penalty would be considered hefty. However, if you are into Techs heavily on the Nasdaq or such and are looking for 30% in 2-3 months then the penalty is a non-item and personally I ignore it and plunge in full blast. Is this prudent?? Only if you're an aggressive as hell investor. I am. Thanks Scouser for bringing this up. Its a VERY important item and also regarding the transfer of an existing stock you hold to your RRSP, I imagine in the "Yesterday Rule", that you are responsible for Capital Gains Tax or get a Capital Loss Tax Credit whichever applies on that stock transfer. Is that your understanding too?

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next