In this episode, the guys tackle the obligatory RRSP discussion and how those focused on FI can use them. If you found this podcast you’re probably familiar with the FIRE movement that has grown in popularity recently. Here at the FI Garage, we’re all on the path to FI, however, we consider the RE part optional.
Beer – Radegast 12 [0:35]
Useful Tool – spaceishare [3:09]
RRSP [8:30]
- TaxTips web site [12:18 & 29:48]
- The Garage Manoeuvre – Request to Reduce Tax Deductions at Source [16:49]
- Set up a recurring deposit into an RRSP account;
- Request a letter from your Brokerage outlining the details of your recurring deposit;
- Fill out a form T1213 and send both the letter and the form to the CRA; and
- Take the letter the CRA sends you to your payroll department.
- Asset Location via the Rational Reminder [21:30]
- Norbit’s Gambit: How to Exchange Money Without Paying Fees via Millenial Revolution [22:38]
- Home Buyers’ Plan [26:10]
- What it takes to Retire at 45 via Money Sense [34:30]
- The Best Types of Accounts for Different Investments via Freedom Thirty Five Blog [38:50]
At TD I’m able to transfer $USD into my $US RRSP. It’s slightly convoluted but it avoids conversion. It will work both ways to take $USD
-Deposit $USD into a non reg USD brokerage account.
-buy USD money market fund
-transfer in kind USD money market fund to Canadian RRSP account (this will determine how much in Canadian your contribution is)
-transfer the USD money market fund from Canadian RRSP account to $US rrsp account
-sell USD money market fund in $US account
Now you have $USD in a US brokerage RRSP account to buy US listed stocks
To get money out, just do the reverse
I wish I had been better educated about this back when I opened and funded my accounts. I ended up having USD become CDN and then back to USD!!! Talk about a waste of money in transaction and exchange costs!!
Great episode! I’m left with more questions than answers in my financial situation but that’s not a bad thing.
Hey JR,
No kidding, there’s lots of topic we’ve come across that open up a whole new world of things you didn’t know, you didn’t know!! LOL Feel free to shoot us an email with specific questions. We’re not experts, but are happy to share our opinion and give you ideas that work for your situation. Think of it a FI coaching.
Cheers,
MM