A discussion on tax efficiency in the comments section over at Freedom 35’s blog (yes, riveting stuff) has spilled over here: where, oh where, to put plain vanilla US dividend paying stocks for Canadians? The obvious insta-blurt-out-without-thinking answer is in the RRSP. But is it the best place? You get the benefits of no foreign withholding taxes and contributions are deductible from taxable income. It’s probably the best choice in a “between a rock and a hard place” scenario, but it’ll depend on your specific circumstance. Let’s consult the tax efficiency matrix.
Emergency funds are important for many people. I know it provides us with a psychological benefit having a large horde of cash sitting around for “just in case”. That psychological comfort and liquidity is worth forgoing potentially higher returns in the market. But, ideally, you want your horde of cash making a decentish return. Where should you park your emergency fund?
The road to successfully planning and saving for your retirement can be bumpy and dangerous. These are the 3 most important factors you need to keep in mind when it comes to successfully saving for your retirement.