Ep.8 Case Conference: Choosing the Right Door

Today's Case Conference accompanies an episode in which we provide a detailed breakdown of the registered account types available to Canadian investors and how to utilize them. Despite their numerous potential advantages, however, there are still many people who avoid them, primarily because optimizing these can seem too complicated and overwhelming. Our hope is that today's episode will provide you with the confidence and knowledge you need to feel empowered to take the next steps in your investment journey. Tuning in, you'll hear several case studies that address common concerns, like how to avoid having a Retirement Savings Plan (RRSP) that's too big and how to navigate your RRSP and tax-free savings account (TFSA) as a high-income earner. We also get into Registered Education Savings Plans (RESPs), why group RESPs can be so predatory, how to plan your exit from a group RESP if you're already in one, and more. For relatable examples of how to use these accounts, plus the many benefits of diversifying them, listen in today!

Key Points From This Episode:

(0:00:58) Our first case study concerning a technology company employee with restricted share limits (RSUs) as part of their expected compensation.

(0:02:02) Relevance for high-income earners and how to make decisions about RRSPs and TFSAs.

(0:05:35) A case study on two physicians with a young child who want to shift their investment plan from a group RESP to an individual RESP.

(0:06:59) The complexity of group RESPs, why they're predatory, and how to plan your exit.

(0:12:56) Case study three: common fears of a too-big RRSP, especially for those who are incorporated.

(0:15:54) How to optimally use your RRSP or Registered Retirement Income Fund (RRIF) when it comes to tax deferral, tax sheltering, and taking dividends out of your corporation.

(0:17:45) Controlling the income from a corporation, paying yourself dividends, and how to ensure you aren't penalizing yourself.

(0:19:09) Rational Reminder Episode 70 and key takeaways on how to avoid a too-big RRSP.

(0:21:10) A rundown of the many benefits of diversifying your accounts.

Links From Today's Episode:

Money Scope Episode 8 — https://moneyscope.ca/episode-8-canadian-investment-accounts

Rational Reminder: Episode 70 — https://rationalreminder.ca/podcast/70

Dr. Mark Soth (The Loonie Doctor) — https://www.looniedoctor.ca/

Dr. Mark on X — https://twitter.com/LoonieDoctor

Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/

Benjamin on X — https://twitter.com/benjaminwfelix

Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/