I agree. Canadian Couch Potato has everything you need. Not only that, but I believe Dan may be the smartest Canadian financial guy ever. Anything you need is on that site--just use searches.
+1. I switched to CDN couch potato 18 months ago and it makes it all so much easier. No horrible financial planners either.
After ensuring you get all employer matching...
Here is the general CDN tax rule..
When income is low, max out TSFA first. When high (over 25% marginal tax), max out rrsps until your net taxable income is under $35k or so..
If you have lots of money, max out both. MMM style is to always max out both..
You can use RRSP to balance out high/low income years... Put $ in during very high years (over $70k, say) to get the tax rebate at a high %.. and with draw it when at a lower bracket (30k), even if just reinvested on a tsfa. You will pay a much lower tax rate the withdrawl year. You get to shelter yourself from taxes on the high year and pay lower on the lean year. The only downside is loss of available room in RRSP, but you get the tax benefit early,so not a real loss.
Good luck!
GoldieLocks nailed it right there!! Great advice and knowing when to invest into which vehicle is important.
I started out on the full CouchPotaoto setup originally but then tailored it down to the following after reading JCollins and MMM. Start with a CND index as these funds often have $1000 minimums some times and work your way up as you reach the minimum cash values to open.
I have a regular Scotia TFSA and hold funds US index and CND index only
- 1.0% MER fees so I'm pulling out in December and putting into my RRSP for 2014 calender year as I have a huge RRSP limit and high tax bracket. Then I'm free to invest the full amount drawn out in December 2014 back in January 2015 without penalty. Im doing this so I can open a iTrade TFSA and enjoy the lower MER fees . I use the TFSA as my emergency fund incubator LOL I have 35,000 in my TFSA right now thanks to growth and with next years bump of $5500 I can invest $40,500 instead of the base amount of $37,000 that it will be. The real beauty of a TFSA that others touched on here.
I have a Scotia iTrade RRSP and hold ETFS
- here is where I hold Dan's breakdown but ditched the bonds
- I have VCN (vanguard canada index) VUN (vanguard us index) and ZRE (BMO Reit) , all have .15% MER fees I believe
Keep asking on the forums here as there are so many smart people and best part is people want to help, not sell you something to make money off you. I am also learning so take what I have to say here with a grain of salt and if anyone else can add to my words please do so.
Best of Luck Batbatmanne , this is the start and only you can steer it down the right path but at least make the decision to at least move forward. every month and year puts you that much closer.