RRSP for a non-resident alien
QUESTION:
I am in Canada on a work permit, but my wife is a landed immigrant. I would
like to know if I can contribute into a spousal RRSP (I have some room for
2005 based on my last tax assessment).
Thanks.
david ingram replies:
You can buy a spousal RRSP or one for your own.
Of course, most of the time, I think people should pay down their mortgage
and always pay down an 18% credit card first BEFORE buying an RRSP.
Assuming the yield is 4% or better, for instance, a person is always better
with a leveraged and structured investment outside an RRSP then they are
with the same product inside an RRSP. I.E. If you borrow a $100,000 at 5%,
buy XYZ mutual fund which goes up at 4% or better, you are far better off
than you are paying $5,000 a year to buy the same mutual fund within an
RRSP.
I am in Canada on a work permit, but my wife is a landed immigrant. I would
like to know if I can contribute into a spousal RRSP (I have some room for
2005 based on my last tax assessment).
Thanks.
david ingram replies:
You can buy a spousal RRSP or one for your own.
Of course, most of the time, I think people should pay down their mortgage
and always pay down an 18% credit card first BEFORE buying an RRSP.
Assuming the yield is 4% or better, for instance, a person is always better
with a leveraged and structured investment outside an RRSP then they are
with the same product inside an RRSP. I.E. If you borrow a $100,000 at 5%,
buy XYZ mutual fund which goes up at 4% or better, you are far better off
than you are paying $5,000 a year to buy the same mutual fund within an
RRSP.
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