Quote:
Originally Posted by Nancy
Regarding the previous suggestions, I think the problem is that Fotze is limited to the fund offerings provided by his employer sponsored investment plan. My personal experience is that the funds offered to me through these employer plans were always poor performers with high expense ratios and very limited selection. If your employer is not doing contribution matching, then I think you may be better off doing your monthly contributions with a company of your own choosing. I believe you can still get the instant tax relief by filing a TD-1 to have your tax deductions reduced on your paycheque. MoneyGuy or Slava can give you advice on that.
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I tell clients they can do this and that it's a good thing, but very few bother. YOu have to reapply each year so it requires ongoing effort. It doesn't reduce the taxes you pay, but it means you get to keep your money in your pocket longer instead of Ottawa's. I find that many people actually like getting that tax refund each year. It's like a gift. I've (nicely) argued with clients about this (okay, discussed). I've offered that they could give me a hundred dollars a month, too, and I'll give it back to them in May without interest just like CRA does, but so far no takers.
I think some moderator should change the name of this thread to the financial advice thread.
