I’m saving for a long-term goal — should I use an RRSP or a TFSA?

You’ve got a bit of extra money, and you’d like to sock it away for the long term. But what’s the best way to do it?We asked personal finance expert Chuck Grace whether contributing to an RRSP or a TFSA is a wiser option for long-haul savings.Grace, a personal finance lecturer at Western University’s Ivey School of Business, said it depends on what you’re actually saving for. If it’s a financially-secure retirement, the RRSP gets the nod. If it’s almost anything else? A TFSA is the way to go.“A TFSA is ... incredibly flexible. You can put money in. You can take it out. You can put it back in. And all the while that it’s in there, it’s compounding tax-free,” said Grace.Unlike an RRSP, where withdrawals are usually subject to taxes if you take money out before you retire, TFSA withdrawals aren’t penalized. That, says Grace, makes TFSAs ideal for saving for anything from vacations, to cars, to paying for your kid’s braces.“RRSPs are great for saving for retirement,” Grace said. You can contribute during your peak earning years when your tax rate is high, and you don’t have to pay taxes on the money you put in. You do pay taxes when you take the money out, but if you’re retired then, your tax rate will likely be much lower. Another advantage RRSPs do have, Grace points out, is a much higher contribution limit. You can put up to 18 per cent of your earnings into an RRSP, up to a maximum of $27,830 (pension contributions your employer makes count against your RRSP limit). In 2021, the maximum contribution to a TFSA is $6,000.Josh Rubin is a Toronto-based business reporter. Follow him on Twitter: @starbeer

I’m saving for a long-term goal — should I use an RRSP or a TFSA?

You’ve got a bit of extra money, and you’d like to sock it away for the long term. But what’s the best way to do it?

We asked personal finance expert Chuck Grace whether contributing to an RRSP or a TFSA is a wiser option for long-haul savings.

Grace, a personal finance lecturer at Western University’s Ivey School of Business, said it depends on what you’re actually saving for. If it’s a financially-secure retirement, the RRSP gets the nod. If it’s almost anything else? A TFSA is the way to go.

“A TFSA is ... incredibly flexible. You can put money in. You can take it out. You can put it back in. And all the while that it’s in there, it’s compounding tax-free,” said Grace.

Unlike an RRSP, where withdrawals are usually subject to taxes if you take money out before you retire, TFSA withdrawals aren’t penalized. That, says Grace, makes TFSAs ideal for saving for anything from vacations, to cars, to paying for your kid’s braces.

“RRSPs are great for saving for retirement,” Grace said. You can contribute during your peak earning years when your tax rate is high, and you don’t have to pay taxes on the money you put in. You do pay taxes when you take the money out, but if you’re retired then, your tax rate will likely be much lower.

Another advantage RRSPs do have, Grace points out, is a much higher contribution limit. You can put up to 18 per cent of your earnings into an RRSP, up to a maximum of $27,830 (pension contributions your employer makes count against your RRSP limit). In 2021, the maximum contribution to a TFSA is $6,000.

Josh Rubin is a Toronto-based business reporter. Follow him on Twitter: @starbeer

Source : Toronto Star More   

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Raptors fans fuming after sources reveal Edward Rogers wanted to dump Masai Ujiri

In a Star exclusive, sources revealed that Edward Rogers actively fought against plans to keep Toronto Raptors president Masai Ujiri as head of the team, saying he wasn’t worth the price tag.This comes on the heels of the very public boardroom brawling at Rogers Communications Inc., one of the country’s largest telecom companies, that has spilled out into the public realm. The company now has two groups claiming to be in control after Edward Rogers was voted out as chairman of the board in a move supported by his mother and siblings. Over the weekend, Rogers says he was re-elected as board chair by a group of newly-selected board members. His sister, Martha Rogers, has been actively tweeting about the internal feuding and said, “this should be taken as seriously as if he appointed himself the King of England.” Behind the scenes during contract talks After weeks of negotiations with Ujiri that began in mid-July, both MLSE chair Larry Tanenbaum and Bell were on board with offering Ujiri a sweetened package that included incentive pay tied to a future increase in value of the Raptors — he had already added $500 million in value to the franchise since his arrival in 2013, taken the team to the playoffs in every year prior to the pandemic and won the NBA championship in 2019.Several sources told the Star that some time after a meeting with Ujiri, Rogers called Ujiri and told him he wasn’t worth the money he was being paid. The NBA source said the call left Ujiri feeling so angry and disrespected by Rogers that he considered taking a year off as president of the Raptors.Sources also revealed Rogers called Ujiri arrogant, saying he failed to share his vision for the team.To the relief of Toronto fans in a city that the Raptors president and vice-chairman calls “home,” the team announced on Aug. 5 that Ujiri was staying on as head of basketball operations for the Raptors.The Raptors play at home Monday night against former teammate Demar DeRozan and the Chicago Bulls, with fans on Twitter already co-ordinating ‘f--k Ed Rogers’ chants ahead of tipoff. Here’s what people are saying about the Star’s exclusive:One user referenced Edward Rogers’ recent rise in notoriety “from obscurity to the most hated man in Toronto.”Another user said not recognizing the true value of Ujiri was “the most Ed Rogers thing ever.”Canadian actor Tara Spencer-Narin expressed her criticism of Rogers and said, “Masai is worth every penny.”One Twitter user shared a gif of someone typing on their laptop while chewing gum and tweeted, “Masai stan’s filling out Rogers online forms to cancel any and all subscriptions this morning.”Other Twitter users expressed disbelief that Masai decided to stay in the end, considering the opposition he faced despite winning a championship for the franchise and city. Some Twitter users are questioning the evaluation of Masai’s “worth,” asking if whether the same conversation would have taken place were he not a person of colour. With files from Christine Dobby and Doug Smith.Simran Singh is a reporter for the Star's radio room based in Toronto. Reach Simran via email: simransingh@thestar.caIvy Mak is a team editor on the Star's breaking news desk, based in Toronto. Reach her via email: ivymak@thestar.ca

Raptors fans fuming after sources reveal Edward Rogers wanted to dump Masai Ujiri

In a Star exclusive, sources revealed that Edward Rogers actively fought against plans to keep Toronto Raptors president Masai Ujiri as head of the team, saying he wasn’t worth the price tag.

This comes on the heels of the very public boardroom brawling at Rogers Communications Inc., one of the country’s largest telecom companies, that has spilled out into the public realm.

The company now has two groups claiming to be in control after Edward Rogers was voted out as chairman of the board in a move supported by his mother and siblings. Over the weekend, Rogers says he was re-elected as board chair by a group of newly-selected board members. His sister, Martha Rogers, has been actively tweeting about the internal feuding and said, “this should be taken as seriously as if he appointed himself the King of England.”

Behind the scenes during contract talks

After weeks of negotiations with Ujiri that began in mid-July, both MLSE chair Larry Tanenbaum and Bell were on board with offering Ujiri a sweetened package that included incentive pay tied to a future increase in value of the Raptors — he had already added $500 million in value to the franchise since his arrival in 2013, taken the team to the playoffs in every year prior to the pandemic and won the NBA championship in 2019.

Several sources told the Star that some time after a meeting with Ujiri, Rogers called Ujiri and told him he wasn’t worth the money he was being paid. The NBA source said the call left Ujiri feeling so angry and disrespected by Rogers that he considered taking a year off as president of the Raptors.

Sources also revealed Rogers called Ujiri arrogant, saying he failed to share his vision for the team.

To the relief of Toronto fans in a city that the Raptors president and vice-chairman calls “home,” the team announced on Aug. 5 that Ujiri was staying on as head of basketball operations for the Raptors.

The Raptors play at home Monday night against former teammate Demar DeRozan and the Chicago Bulls, with fans on Twitter already co-ordinating ‘f--k Ed Rogers’ chants ahead of tipoff.

Here’s what people are saying about the Star’s exclusive:

One user referenced Edward Rogers’ recent rise in notoriety “from obscurity to the most hated man in Toronto.”

Another user said not recognizing the true value of Ujiri was “the most Ed Rogers thing ever.”

Canadian actor Tara Spencer-Narin expressed her criticism of Rogers and said, “Masai is worth every penny.”

One Twitter user shared a gif of someone typing on their laptop while chewing gum and tweeted, “Masai stan’s filling out Rogers online forms to cancel any and all subscriptions this morning.”

Other Twitter users expressed disbelief that Masai decided to stay in the end, considering the opposition he faced despite winning a championship for the franchise and city.

Some Twitter users are questioning the evaluation of Masai’s “worth,” asking if whether the same conversation would have taken place were he not a person of colour.

With files from Christine Dobby and Doug Smith.

Simran Singh is a reporter for the Star's radio room based in Toronto. Reach Simran via email: simransingh@thestar.ca

Ivy Mak is a team editor on the Star's breaking news desk, based in Toronto. Reach her via email: ivymak@thestar.ca

Source : Toronto Star More   

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