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Gold/Mining/Energy : TAXES, TAXATION, TAX and Canadian stocks -- Ignore unavailable to you. Want to Upgrade?

To: Michael Dean who wrote (255)	11/8/2000 1:42:05 PM
From: Kayaker	Read Replies (2) \| Respond to of 548

I still contend that a major RRSP advantage is that deductions are at your marginal rate, and withdrawals will be at close to average rate which can be significantly lower if your other income is low. I don't get that. Tax on your withdrawals is at your marginal rate. The withholding at the time of the withdrawal may be lower but the tax is at your marginal rate.

To: Michael Dean who wrote (255)	11/8/2000 10:48:03 PM
From: Jordan Levitt	Read Replies (2) \| Respond to of 548

Mike, There is also one further advantage of investing inside an rsp versus outside. Should I need to re-balance my portfolio, sell something, want to switch to another investment, I do so with impunity (at least in the sense of taxation). I cannot begin to tell you the number of times I have seen people (myself included) hold onto too much of one stock or fail to re-balance their positions because of "taxes avoidus" This is a little known syndrome that is all too common, and can lead to great pain. Just ask all those people who wouldn't lighten up on their Nortel !