RRSP - early withdrawls

Quotes from http://www.theglobeandmail.com/globe-investor/personal-finance/rrsp/how-early-withdrawals-can-reduce-the-rrsp-tax-hit/article2351732/

Jean Lesperance, the blogger at Canadian Financial DIY and HowToInvestOnline, is gradually “melting down” his RRSP in support of a semi-retired lifestyle. Still a few years younger than 65, he is also funnelling RRSP withdrawals into his tax-free savings account (TFSA) to have the flexibility to receive tax-free income that can augment or replace RRIF withdrawals later.

“That’s to keep me in the lowest possible tax bracket all along, and to minimize as much as possible the clawback of income from government programs such as OAS [Old Age Security],” Mr. Lesperance says. “If I can pay 20 per cent tax on $50,000 RRSP money instead of 30 per cent tax, that’s like a 10-per-cent return on my money. Taxes matter a lot.”

Low-income seniors with RRSPs may want to melt them down before 65 no matter what their tax rate is. It is unlikely to be as high as the clawback of the guaranteed income supplement (GIS): a dollar of RRSP income after age 65 snatches back 50 cents from the GIS, equivalent to a 50-per-cent tax rate.

Middle-income seniors can receive close to $20,000 in annual income tax-free thanks to the basic-personal, age, and pension-income tax credits on their tax returns (Lines 300, 301 and 314). If nondiscretionary retirement income (e.g. OAS, corporate pension) is less than this amount, the difference can effectively be withdrawn from RRSPs free of tax.

Retirees shouldn’t wait until 71 to open RRIFs and transfer in RRSP funds, advises Ron Watson, 68, of Thunder Bay, / who gives workshops on entrepreneurship and financial management. RRSP withdrawals are subject to transaction fees and tax withholding whereas RRIF withdrawals are not. Moreover, after 65, RRIF withdrawals are eligible for income splitting, and the pension income tax credit can be applied to the first $2,000 taken out every year.

An aggressive form of the meltdown relies on leverage to extract RRSP funds without incurring any or very much tax. It works this way: RRSP withdrawals are used to pay, in full or part, the interest on an investment loan in a non-registered account. Since the interest is tax deductible, it cancels out the taxes on RRSP withdrawals, in full or part.

A leading proponent is Garth Turner, the former member of parliament who blogs at Greaterfool.ca: “I plan to borrow a mess of money to invest in a nice, balanced portfolio, then use RRSP withdrawals to pay the interest on that investment loan. ... By the time 71 rolls around, the net effect is that I’ll have transferred wealth from one pre-tax pile to another after-tax one.”

Glycemic Index

From slide #24
http://www.lowcarbwellness.com/wheat---grain-danger
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quoting Jim Sinclair

My Dear Friends,

Today was long and enlightening for me. I made multiple meetings in New York City with significant money managers.

During these meeting the price of gold rose above the $1764 level which I have repeatedly told you is as important as $524.90 was when gold broke out of its arithmetic up trend and entered its first power up trend. I wish to remind you $1764 is the point where gold moves out of its power up trend and enters into its geometric uptrend. I have also assured you the central banks and especially the US Fed via the BIS and Exchange Stabilization Fund seek not to depress gold, but only to prevent it from running so hard on the upside as to expose the true condition of Western world finance.

There has been significant interventions in the gold price at Angel $1764 with unexpected other central bank accumulation resulting in inexplicable strength in the $1710-$1720 area.

As the strong dollar policy is clearly a policy of softening a long term decline, the interventions in gold have been to modify a desire in the market itself to go ballistic on the upside.

If there was any startling realization today it was that among true geniuses and maturity in major money managers there is a grave lack of understanding concerning the forces at work in the financial can kick of the century now about to take place.

Only one person today knows that the war with Iran starts when Iran is frozen out of the Swift system. In terms of finance, that is a nuclear attack. It was just that threat alone that made Swiss banks destroy their tradition of privacy and send their loyal clients to a mass execution, assuming that they were cheating on taxes.

Not one person I spoke to today ever asked themselves who determines if credit event is a default and what that means to the mountain of credit default swaps that US banks have vended via their non US subsidiaries. By this method the count of these OTC derivatives by the US Controller of the Currency is way short of the true amount of debt insurance banks have sold.

Only one man understood what a commodity currency was and had studied where currency induced cost push inflation had produced severe price inflation during periods of awful economic conditions brought on by all types of debt failure.

I am speaking with leaders in finance who control immense sums of money. If these people do not understand the forces at work what makes you think politicians or their college professor appointees to central banks have a better understanding? The answer is simple – they do not!

Let me share with you the conclusion I took away from today’s luncheon.

1. What is going to happen is going to take place in March somewhere between the 14th and 20th in all probability.
2. What will determine the fate of markets is what action China does or does not take in providing funds to IMF bailout funds.
3. I believe China can and will extract significant trade and other benefits for their presence.
4. I believe China will want the same immunity that the IMF just took for themselves on sovereign debt in liquidation.
5. Greek gold will be held hostage to their debt.
6. That will accelerate the modest trend of repatriation of gold for the cellar of the New York Fed to nations like Germany that are certainly able to store their own wealth.
7. There will be an acceleration in the trend of utilization of other currencies than the dollar for contracting internationally regarding goods, service, oil and minerals.
8. I do not agree that we are at the doorstep now of major changes in the international monetary system. That comes in June of 2015.
9. I am certain that we are on the immediate threshold of the monster kick of the financial can down the road that is a dead end.
10. I believe China and the US Fed will assist in that great last can kick that backfires.
11. I am certain that I am in the right business and that business is the identification and accumulation of gold as gold is the ultimate survivor of what is about to happen.
12. I am certain the gold industry is mad as a Danbury hatter in selling their product the moment they produce it.
13. I am certain the gold and silver industry is in a transition back to the dividend producers they once were.
14. I am certain that the volatility in gold, silver and equities we have already seen is nothing compared to what is about to happen.
15. The last man standing among asset categories as the nehttp://www.blogger.com/img/blank.gifw monetary system is introduced sometime post June of 2015 will be gold and gold alone.

Therefore the soundest investment now is what I, and others (McEwen) are doing in building companies whose inventories of goods to be sold are mineable ounces of gold and other precious metals in the ground moving towards production.

The immense shorts in this industry group are whacked out noobies without a clue.

New mines need never pollute. Old mines can never be cleaned up. Open pit and surface enrichment is the type of gold that will be least effected by rising costs.

Respectfully,
Jim

http://www.jsmineset.com/
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Excerpt from "Life Without Bread"

Observations recorded throughout modern history reflect the benefit of low-carbohydrate nutrition. Herodotus tells of the meeting between a Persian delegation and the king of Ethiopia in the fifth century B.C., and of the curiosity of the Ethiopian king concerning Cambyses, the Persian king:

Finally (the Ethiopian king) came to the wine and, having learnt the process of its manufacture, drank some and found it delicious; then, for a last question, he asked what the Persian king ate and what was the greatest age that Persians could attain. Getting in reply an account of the nature and cultivation of wheat, and hearing that the Persian king ate bread, and that people in Persia did not commonly live beyond eighty, he said he was not surprised that anyone who ate dung should die so soon, adding that the Persians would doubtlessly die younger still, if they did not keep themselves going with that drink - and here he pointed to the wine - the only thing in which he admitted the superiority of the Persians.

The Persians, in their turn, asked the Ethiopian king how long the Ethiopians lived and what they ate, and were told that most of them lived to be 120, and some even more, and that they ate boiled meat and drank milk.
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music

HOW GREAT THOU ART - MARTINA MCBRIDE

My God and I (sesamonte)

Adjusted for inflation

http://www.aboutinflation.com/inflation/canada---inflation
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George Younce

Side by Side

We got married last Friday
my girl was right there beside me
our friends were all gone
we were alone ... side by side.

We were so happily wed, when
she got ready for bed; then
her teeth and her hair
she place on a chair ... side by side.

One glass eye so tiny
one hearing aid so small;
then she took off one leg
and placed it on the chair by the wall;

I stood there broken hearted
most of my gal had departed
I slept on the chair
there was more of her there ... side by side.

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Patty Geppert

No Tears in Heaven

Jesus And Me

Just Build My Mansion

Where The Roses Never Fade

Leaning On The Everlasting Arms

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People of Walmart

Have you ever wondered what happened to the sixties hippies?
This guy was observed "chillin" at Walmart.

Jim Sinclair’s Commentary
We deal with all the problems of economics and politics.
Now here is a fellow who really does not give a damn.
The question is if he is happier?

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CMF forecasts

Wanted to ask TA gurus....don't you think that we have inverse head and shoulders for oil and oil gonna rully to 130-135?
...
Not possible
http://www.canadianmoneyforum.com/showpost.php?p=114139&postcount=2299

Belguy: "The buyers will become criers!!!"
http://www.canadianmoneyforum.com/showpost.php?p=118148&postcount=781
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Drumheller population

Census reveals modest growth

Consistency is key as Drumheller grows again following the 2011 Census.
The Town of Drumheller saw modest growth over the period since the last census in 2006.
The population went from 7,932 to 8,029, a modest growth of about 1.2 per cent. While it is not a great increase, Mayor Terry Yemen said it is positive simply because, while there has been a period of economic instability, the trend is in the right direction.
In comparing surrounding communities and like-sized towns, the trend is mixed. Hanna saw a decrease in population of about 6 per cent. Beiseker also dropped about 2.4 per cent, Stettler saw an increase of 5.6 per cent and Camrose increased by 10 per cent.
Yemen says he believes the numbers are accurate. Following the 2006 census, the Town of Drumheller paid to conduct a second census with the assertion that growth had been higher. They found the numbers were lower.
Bill Wulff, acting Director of Corporate services for the Town of Drumheller, said the numbers are important because many grant programs are based on per capita.
“Just about all of them are based on per capita,” said Wulff, adding the population at the Drumheller Institution is included in the count.
He says there are a number of reasons people may perceive growth being higher. While there are a number of new faces in town, he said there is attrition; for example when young people leave the valley to study they do not return.
While there has been an increase of new homes being built that could signify growth, Wulff adds those buying houses could be current residents who are moving from the family home, or starting a new family.
Alberta led the way in Canada with the highest percentage of growth (10.8), bested only by the Yukon Territory with 11.6 per cent growth. Overall Canada grew by 5.9 per cent with no province or territory declining.
More information from the 2011 census will be released throughout the year.

http://om.ly/BmQpV

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pure bs but funny

Why You Should Eat Dessert for Breakfast

Scientists also said that it's not good to cut out sweets entirely when you want to firm up because it can create a psychological addiction to them in the long run and cause you to crave them 24/7.

Obviously, you wouldn't want to make it a habit to have a massive piece of cake every morning, but ending breakfast with a few Hershey's kisses or a cup of hot chocolate could have the same effect.

http://ca.shine.yahoo.com/why-you-should-eat-dessert-for-breakfast.html

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Warren Buffet's ..

.. Latest Insurance Con

http://etfdailynews.com

February 15th, 2012
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Letter from freed slave to former master draws attention

http://ca.news.yahoo.com/blogs/sideshow/letter-freed-slave-former-master-draw-attention-151653952.html

A newly discovered letter from a freed former slave to his onetime master is creating a buzz. Letters of Note explains that in August of 1865, a Colonel P.H. Anderson of Big Spring, Tennessee wrote to his former slave Jourdan Anderson, requesting that Jourdan return to work on his farm.

In the time since escaping from slavery, Anderson had become emancipated, moved to Ohio where he found paid work and was now supporting his family. The letter turned up in the August 22 edition of the New York Daily Tribune.