Comments on: I Thought My Visa Balance Was Kind A Low

By: Save Now Pay Later « John Chow dot Com

Save Now Pay Later « John Chow dot Com — Sat, 16 Dec 2006 23:41:52 +0000

[...] In my post where I transferred $5,000 of Visa balance to my zero interest MasterCard so I can use the saving to invest in my RRSP, I came across this very interesting question from Rob. Normally I answer questions right in the comments but this one requires more explanation than a few simply paragraphs. The answer also makes for a good blog post. One method I used to get new post ideas is by reading the comments left by readers. This is something to look at next time you’re wondering, “What should I post about today?” Anyways, on to Rob’s question. The $5000 you put into a RRSP, eventually you have to take it out. 30 years from now it will be worth $87,000, which implies $30,000 of it belongs to Revenue Canada one way or another (direct withdrawal or upon death), was it worth to keep $2000 in tax to pay $30,000 later? [...]

By: rob

rob — Sat, 16 Dec 2006 08:40:33 +0000

The 5000 u put into an rrsp, eventually u have to take it out. 30 years from now it will be worth 87,000 dollars, which implies 30,000 of it belongs to revenue canada one way or another (direct withdrawl or upon death), was it worth to keep 2000 in tax to pay 30,000 later?

Why not implement an RRSP meltdown?
cheers
rob

By: Robyn Tippins

Robyn Tippins — Sat, 16 Dec 2006 04:58:22 +0000

I don’t have even $5K total in Credit Card debt. I do, however, admit a bit of coveting of your tax write off.

By: Stephen

Stephen — Sat, 16 Dec 2006 03:45:09 +0000

You’re all welcome for the linky Great promo. 0% is a hard rate to beat!

By: David Mackey

David Mackey — Sat, 16 Dec 2006 03:21:41 +0000

My best Credit Card is from a small bank whose website stinks horribly, but they have continued to move me up over the last several years from a student limit of $500 to $15k or so.

By: John Chow

John Chow — Fri, 15 Dec 2006 19:35:38 +0000

Jose - The US version of a RRSP is a 401K, or IRA.

Rob - I do not plan to withdraw it. I will use the $2,000 refund and then add $3,000 to repay the MasterCard when the time comes.

Michael - I only have to charge GST on Canadian advertisers who purchase direct from me. There are none.

Gdog - No, I didn’t ask them to increase the limit. It would be useless now. Even if they increase the limit, I can not use it because of the zero interest transfer. Were I to charge anything on the card, interest at 19% would be tacked on to those purchases and will compound until the $5,000 zero interest balance is paid in full.

By: Michael Kwan

Michael Kwan — Fri, 15 Dec 2006 18:52:14 +0000

Sort of on a related, but not so related topic: I was wondering for a small business like yours, John, how do you go about collecting GST? Google Adsense is a big part of your income and you can’t exactly charge them GST.

By: rob

rob — Fri, 15 Dec 2006 18:28:56 +0000

Whats your plan to withdrawl the rrsp’s while eliminating the entire tax bill?

By: Jose

Jose — Fri, 15 Dec 2006 16:58:41 +0000

what is RRSP? is this valid in US too? Do they charge anything for the transfer? I know cards sends you checks to do transfer, but in the fine print they charge you quite a lot in fees for the transfer. 40% return sounds good, again only in canada? Sorry if sound somewhat clueless.

By: Tyler

Tyler — Fri, 15 Dec 2006 16:23:14 +0000

One day I’ll get credit, though I don’t really want any more cards. My Visa is enough for me and its only $1500 because that is what I requested.

I hate using credit, but it’s nice to know I have it when I need it.

Instead of credit, people can just send me cash instead!