Today, or rather this evening, is the day that I will setup my RRSP. Technically I already have an RRSP but that one has only a few dollars in it and is not one that I can access readily.
It is one of those where I need to make an appointment with a banker in order to put money into it or withdraw. Since I can’t even do anything with it with a bank teller, I will close that one this evening, as it is practically useless.
Not having access to my money is not acceptable as I am in control of my finances. I want the ability to easily top up that account as easily as I transfer money into my savings; I refuse the automatic savings crap.
The odd thing to understand about RRSP’s is it is like handing your money to a large bully. You give it to them for safe keeping, asking nicely to have some back if you need it. Even then they will harass and beat you up if you don’t give your money that you “borrowed” from them back. Once you put money into an RRSP, that money no longer becomes yours, yet still is; a strange dichotomy to be sure.
Anywhose, tonight I will set up two investment accounts, one is my RRSP investment account and the other is a plain old Investment Account. One is for retirement (baring the Zombie Apocalypse) and the other will become my Long Term Savings Account.
I will ask about a TFSA, or Tax Free Savings Account, when I am there tonight. If there is some maximum cap that I can put in there then that is useless for me. My goal is to save up more than $5000.00 or $10,000.00 in there so I can save up and pay off the truck then trailer loans all at once.
While I am not ready to put money into My Long-Term Savings Account yet, I will open it with $100.00. I will add to it once my Mid-Term Savings Account is funded up to its target of $6000.00 (Expected March 22).
The RRSP I will open up with the unexpected year-end bonus that I got from my boss. I will continue to put $50.00 a payday into it all year long. If there is some screw up with the federal government and the actually allow me to have a Tax Refund this year then I will dump that in there too.
Again, this is a bit of a fun time for me, and not to gloat but it is nice to be able to consider what to do with what is technically “extra money.”