Friday, December 16, 2011

It's that time of year again!

Well its 9 days until Christmas and I am almost done my Christmas shopping. All that I have left to get is the rest of my best friend's gift and I am done. I haven't tallied up my receipts yet but I estimate I have spent around $340 dollars so far. My budget was around $75-$100 per person with 4 people to shop for.

I haven't posted much in the last few weeks because my Macbook has crashed yet again! I am thoroughly unimpressed. Clearly the last time I got it "fixed" they didn't really get to the root of the problem, because ever since then it was slower and freezing a lot more. I knew it was only a matter of time before it would happen again. I am going to call tech support tomorrow, and I am praying they will be able to help me. If I have to bring it to an Apple store, I am going to wait until the new year because I don't want to be fighting these crowds of last minute shoppers! I think I am going to write Apple because I don't think a brand new computer should be crashing twice within the first year. All I really do is surf the net and listen to music and do my school work.

Anyways I wanted to get everyones advice about something. I am now eligible to sign up for RRSP's at work. There are 2 plans I can sign up for:

1. Company pension plan - employer matches 50% of my contribution up to $1000 per year. They will automatically deduct 4% and put it into this unless specified otherwise.
2. Group RRSP - NO match! But these contributions would be eligible for the Home Buyers Plan and not to mention the break you get on your taxes.

What should I do? I want to take advantage of the free money but in about 5 years or so I might want to purchase a home and I would like to take advantage of the Home Buyers Plan. Maybe I should contribute half to one and half to the other? Any ideas are appreciated here!


The Asian Pear said...

I guess my question is... Do you plan on staying with the company for long? And do you plan on also contributing to your own RRSP regardless? When do you feel you want to buy a home?

hklover86 said...

Yes I plan on staying them them for the long term. Once I start contributing to these I don't plan on contributing to any others. And I hope to buy a home within 5-7 years.

krystalatwork said...

I would suggest contributing to the pension plan to get the 50% match (so that would mean you have to contribute $2,000/year to max out the $1,000 they would contribute).

Then you can take anything else you want to contribute to your retirement into an outside RRSP (like the TD e-series). That way you can get that employer match AND save for RRSP/home buyer's plan as well.