Maximizing RRSP vs Minimizing Taxes

Contrary to popular belief, maximizing your RRSP may not always be synonymous with minimizing your taxes. Sure, your contributions will bring down your taxable income in the short run and you probably will get a refund soon, once you file your tax return. But after all is said and done, you may also end up paying more tax.

The good news is that, as far as RRSPs are concerned, fairly simple fiscal planning can go a long way. The key is to compare your present (or contribution) tax level with your probable withdrawal tax level.

Because taxes increase with your income level, ideally, you want to contribute when your income is high and withdraw when it is low. In the same fashion, you want to avoid unnecessary contributions when your income is abnormally lower and limit withdrawals in periods where your income is higher.  

The Powerful Nature of Ever-Present Number 12

Whether you’ve noticed it or not, all our lives revolve around omnipresent number 12. Moreover, despite the fact you can choose to ignore it or know zilch about the power of that mysterious number, the truth is that it may already be having an effect on you anyways.

And believe us, there’s more to it than the very convenient dozen.

Evidence Everywhere Around Us

In many previous 12-Minute Articles, we’ve listed examples and reasons why twelve is so omnipresent in our lives. Even if the phenomena can appear strange, it may not only be a mere coincidence. Here’s a couple additional ones.

For starters, you must realize you only dispose of 12 seconds to make a first impression. Furthermore, any respectable teacher or speaker must take into account that, even for adults, the optimal attention span is only 12 minutes. It’s even less for young children.

New Year and Dividend Income Update 2018

As usual, figures have been updated on several pages of our blog to reflect 2017 results.

Among others, these pages have been updated:

Escaping 9-to-5

Investing Goals

Portfolio

A tad sooner than expected, the accumulating phase of our investing plan is phasing out. Our DIY Portfolio should continue to steadily grow but our major contributing efforts are already a thing of the past.

12-Minute Meetings (Revisited)

The 12-Minute Series was originally posted in 2012.

We’ve decided to republish it integrally because we believe it can still help as everyone aspires to make things better.

Let’s hope it stirs up the discussion and stimulates you to change the world 12-Minute at a time!

This article was originally posted on June 12, 2012

Sometimes, meetings can be a drag, especially when your boss likes to listen to himself for endless and countless hours. Furthermore, he’ll probably be upset afterwards because you missed some of his points and you lacked time to complete all your work.

Maybe someone could introduce him to the 12-Minute Segment Rule.

Use The 12-Minute Segment Rule

During a meeting, each speech or presentation should be limited to 12-Minute segments because for most people, the optimum concentration period is only 12 minutes. Beyond that, the average person won’t be able to focus and follow explanations.