(From Movie "Firefly": (playing with toy dinosaurs))
"Curse you and your sudden but inevitable betrayal!"
http://www.retirement-how-to.com/retirement-saving/defend-savings-from-a-surprise-tax-grab-globe-and-mail.html
So health care and old age income programs will sap funding from productive investment in future workers.
But it won't stop there.
They'll ret-con the rules on tax too. The obvious first step will be to hike income (and other) taxes. But this will yield diminishing results and result in rebellion at some point.
So what is a generation intend on leaving a fiscal "scorched earth" behind for their descendants to do, when so stymied?
Change the rules on RRSPs and TFSAs.
The article sez use a mix of BOTH - this likely means maxing out the tax free savings account.
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Now let’s jump ahead a decade or so and imagine that efforts to keep spending in hand have not worked out. Hungry for revenue, the government looks for ways to cut spending and raise taxes. As part of an effort to ensure all segments of the population share the pain, registered retirement savings plans and tax-free savings accounts come under review.
The usual point of comparison between TFSAs and RRSPs is the amount of tax you pay on the money you contribute today, and on the money you’ll withdraw in the future. Now, there’s something else to think about. Which savings vehicle is easier for the government to raid for extra revenue?
RRSPs get the nod here for sure, but TFSAs could get whacked, too, if the government needed every possible cent of tax revenue. That’s why today’s smart savers will hedge their retirement savings by using both.
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D - it takes more "ret-con" gerrymandering to raid 'no tax paid after' accounts than 'just vary the rules' on RSSPs. Not that it is impossible. Just harder.
D - I have a bad feeling about Harper's OAS changes. They'll do NOTHING to reduce senior poverty, or end the whole-middle-class-plus-lower-upper-class feeding frenzy at the trough of what is purportedly an anti-poverty program.
Right. Money says it will exempt the bulk of Boomers, certainly the early ones.
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I've hashed this thought out since then. Use RRSP to hide from income tax. Every few years or decade, withdraw enough for your annual sabbatical. Repeat. Your long-term savings are TFSA. They're bulletproof vs future income tax rejigs when boomers retire. Subvert the rules. The odds are all on the house. This ain't no honest poker game, cowpoke! It's a casino- don't play by their rules. You'll LOSE.
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