Keep Expanded CPP on the Table. David Dodge

[oneoff]

"I have heard(not sure if its true)that the saskatchewan
teachers pension plan is rock solid,i wonder what
would happen if it was pooled with say an ontario or
quebec one that was having major short falls,would
anybody care?"


FYI the Sask Teachers Pension fund is actuarily unsound. Its in the order of 15% /- that is witheld and supervised by Sask Superintendency of Pensions; until 2013; when it will be reviewed. Until it becomes sound; annuity pensions are being capped at much less than 100% allowable withdrawals. So much for rock solid.

Over the course of the last 30 years (with the exception of the last few years they have done very well. It has been suggested that the pension funds are invested in the very same stock markets as any other investor has available.

They just managed money better or worse than any other investor.

[cottonpicken]

Thanks for that oneoff,yet another set of numbers to
run down,getting to the point where i don't want to
look around curtain and see how the trick works.

[rockpile]

Saskfarmer, Cottonpicken and others are dead on. If
you are self employed and especially if you farm
and own large amounts of farm assets don't let the
upfront appeal of reduced taxes now sway your
judgement by maximizing RRSP contributions. Get a
good accountant and financial advisor to look at
your situation when you turn 69. Most of you like
me will likely have a pretty good income after
retirement or worse yet, you'll still be farming at 69
and your mandatory RRSP withdrawals will push
your tax rate to the highest level possible. That will
more than null the positive impact RRSP deductions
allow when first used. Don't forget, the Govt
devised this scheme and they made damn sure it
would be to their benefit. Maximize your TFSA's and
set up your own non RRSP investment accounts -
think growth and long term. Now if you take off
your farmer cap for just a moment and look around
your community, you'll see a whole lot of wage
earners doing necessary work like delivering your
fuel, putting new rubber on your equipment,
loading grain cars at your delivery points - for these
people CPP is the only retirement insurance they
will ever afford. We're a pretty lucky bunch - don't
crap on those who never had the opportunities or
the ability and the smarts to create the
opportunities we have had and made the best of.

[rockpile]

I don;t feel there is anything wrong with RRSP's. Where the problem lies is where the media, investment people and narrow minded accountants try and "sell you" on the tax savings.

Its only a deferral and too often people at talked into a focus that doesn't make good business sense.

There is nothing wrong with putting a reasonable amount into RRSP's each year or when is makes sense.

The problems lies when you buy them but really cannot afford to.

No matter what the tax amount is, it is always your cheapest alternative to pay it verses finding deductions that may cost you 3 to 4 times the tax amount itself.