Keep Expanded CPP on the Table. David Dodge

[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.