The Lexiphage's Retirement Plan
Hello, everyone- just popping in for a quick post.
My Biggest Fan recently asked me about my theory regarding RSP's sp I thought I'd inflict it upon you all. It goes something like this:
The concept of an RSP is that as income is taxes to a proportionately larger degree based on your income, by moving some of your income into an RSP you lower your current income, and avoid paying taxes, and in the future your retirement income will be extremely low 'cuz you already own everything, thusly needing less. By living then on an extremely low income, you either pay only a little tax or avoid the taxman entirely, and so in a small sense, some of your money NEVER is taxed.
This will work for those who have already retired and those who will retire soon; those who are planning to work for the next decade or two may find a different strategy is required.
This is the core reason:
GOVERNMENTS DO NOT LOWER TAXES. EVER. Now don't get me wrong, sometime we get the odd little cut here and there, but it is the nature of bureacracy to defend its own existance (and budget). Thusly, a government program, once initiated will more likely than not continue to run and spend money whether it is successful or not. Over the larger scene, what this means is that a goverment over time will spend more regardless of what they say regarding fiscal responsibility, transparency of government, or other myths. Our population is aging, and as the baby boomers approach retirement age our government nears the point where it will have to subsist on taxes from retirees. Once a large enough portion of our population is living on lower-tax or tax-free income, the government will simply change the rules to tax them extra hard. There's no escaping it.
So my thought is to invest, as much as possible, in items that never lose their value, or items that will never lose their value to you, anyway. Don't borrow against your home equity for a bigger RSP, you idiot, pay off your house instead. Invest in canned food and shotgun shells, build your own backyard power plant and drill your own well; make a nice fortified stone wall around your yard with battlements and gun slits. Convert your basement into a fallout shelter. Buy lots of bear traps to scatter around in a way that's pleasing to the eye and await the socioeconomic collapse with a peaceful heart.
When the government begins seizing all of the citizen's financial assets and martial law is all that keeps the marauding bands of flesh-eating nuclear mutants at bay, you'll know you made a good investment.
...
Thanks for tuning in....
Join us next week for the next exiting adventure with
The Timorous Lexiphage.
My Biggest Fan recently asked me about my theory regarding RSP's sp I thought I'd inflict it upon you all. It goes something like this:
The concept of an RSP is that as income is taxes to a proportionately larger degree based on your income, by moving some of your income into an RSP you lower your current income, and avoid paying taxes, and in the future your retirement income will be extremely low 'cuz you already own everything, thusly needing less. By living then on an extremely low income, you either pay only a little tax or avoid the taxman entirely, and so in a small sense, some of your money NEVER is taxed.
This will work for those who have already retired and those who will retire soon; those who are planning to work for the next decade or two may find a different strategy is required.
This is the core reason:
GOVERNMENTS DO NOT LOWER TAXES. EVER. Now don't get me wrong, sometime we get the odd little cut here and there, but it is the nature of bureacracy to defend its own existance (and budget). Thusly, a government program, once initiated will more likely than not continue to run and spend money whether it is successful or not. Over the larger scene, what this means is that a goverment over time will spend more regardless of what they say regarding fiscal responsibility, transparency of government, or other myths. Our population is aging, and as the baby boomers approach retirement age our government nears the point where it will have to subsist on taxes from retirees. Once a large enough portion of our population is living on lower-tax or tax-free income, the government will simply change the rules to tax them extra hard. There's no escaping it.
So my thought is to invest, as much as possible, in items that never lose their value, or items that will never lose their value to you, anyway. Don't borrow against your home equity for a bigger RSP, you idiot, pay off your house instead. Invest in canned food and shotgun shells, build your own backyard power plant and drill your own well; make a nice fortified stone wall around your yard with battlements and gun slits. Convert your basement into a fallout shelter. Buy lots of bear traps to scatter around in a way that's pleasing to the eye and await the socioeconomic collapse with a peaceful heart.
When the government begins seizing all of the citizen's financial assets and martial law is all that keeps the marauding bands of flesh-eating nuclear mutants at bay, you'll know you made a good investment.
...
Thanks for tuning in....
Join us next week for the next exiting adventure with
The Timorous Lexiphage.
posted by The Lexiphage at 6:23 p.m.
4 Comments:
How come you haven't moved north yet? Since Queen's Park or Ottawa don't really know we exist in NW Ontario, it will be easier to "disappear" when your proposed apocalypse happens.
Where do I enlist sounds like your army wont turn me down
You know, shmucks like that are taking the fun out of blogging. To the rest of you weirdos: I'M NOT BUYING ANYTHING FROM YOU!!!! BUGGER OFF!!!!!!
Cameron, consider that Askintoo might use that $800 to realize present value in his/her expenditures. Anyway, you are absolutley right about taxation, and the recent Conservative governement move to quash income trusts has proved that in spades. However, let me pose the opposite dilemma to you. Without savings, you will be dependent upon the government to care for you. Now how many of those taxes that get collected do you think will ever be redirected for your personal benefit? ...I thought so. So listen up, buy gold and bury it under your basement floor and pour concrete over it. It will rpeserve its value well into your retirement, and the government WILL NOT KNOW ABOUT IT!
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