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ghost
Joined: 06 Dec 2006
Location: Many congenial places
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 Posted: Fri Feb 23, 2007 12:35 pm Post subject: Where do you put the money you save? |
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Many in Korea save anywhere from $300-$1000 a month or more, and was wondering what the best plan for saving is, and not to get taxed?
Getting a lot of conflicting advice in Canada at the moment.
Is it possible (or worth it) to put money in RRSP`s when in Korea?
Was told that many options are not available (mutual funds) if the person is not physically resident in Canada.
And what about tax implications?
Very confused and frustrated by the lack of advice available in Canada, by so called `experts.`
Ghost, ESL teacher, French Montreal school board
Soon to come to Korea |
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SuperHero
Joined: 10 Dec 2003
Location: Superhero Hideout
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| Posted: Fri Feb 23, 2007 2:36 pm Post subject: |
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| I stuff my money into my mattress. |
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crazy_arcade
Joined: 05 Nov 2006
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| Posted: Fri Feb 23, 2007 2:41 pm Post subject: |
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You don't want to put your money into an rrsp until you're back in Canada because then you can use it against your taxes when you start paying them again.
I keep my money split between 3 accounts. I have a checking account that has low interest. I keep a small amount of money in there because it's connected to student loan payments and my credit card.
I have a high interest GIC that is locked in at 4%. I keep this because it has a high interest rate and I can access it without penality in case of emergency.
I have a high interest ING savings account which I think is giving me 4.5% right now |
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VanIslander
Joined: 18 Aug 2003
Location: Geoje, Hadong, Tongyeong,... now in a small coastal island town outside Gyeongsangnamdo!
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| Posted: Fri Feb 23, 2007 2:44 pm Post subject: |
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| In a hole underground in the mountains. |
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4 months left
Joined: 07 Feb 2003
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| Posted: Fri Feb 23, 2007 4:53 pm Post subject: |
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| If you put it in an RRSP you will have to pay Canadian tax on your Korean salary so it isn't really advisable - Korea tax 3% vs. Cnd tax 40%. Get a relative to open an investment account to avoid paying the taxes. |
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Hanson
Joined: 20 Oct 2004
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| Posted: Fri Feb 23, 2007 5:15 pm Post subject: |
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| SuperHero wrote: |
| I stuff my money into my mattress. |
| VanIslander wrote: |
| In a hole underground in the mountains. |
I like both of you as posters, but why bother replying with this nonsense?
I was looking into possibly getting an RESP started , a Registered Education Savings Plan, for my daughter. The nice thing about the RESP is that the tax rate is very low if the money is used for tuition and education-related expenses for my daughter, when the time comes. If my daughter doesn't go to university, the tax rate jumps. Also, the RESP is transferable to another sibling... Also, anyone can contribute to an RESP, a grandparent, uncle/aunt, and so on. This could help the RESP contributor as a deduction on their income tax, so I was thinking about giving my mom the dough for her to place in an RESP and help her tax deductions. Obviously, it wouldn't help my taxes, since I don't pay any now...
Also, term-deposits in Korea are a good, safe, but low-yielding investment. |
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VanIslander
Joined: 18 Aug 2003
Location: Geoje, Hadong, Tongyeong,... now in a small coastal island town outside Gyeongsangnamdo!
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| Posted: Fri Feb 23, 2007 5:27 pm Post subject: |
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| Hanson wrote: |
| SuperHero wrote: |
| I stuff my money into my mattress. |
| VanIslander wrote: |
| In a hole underground in the mountains. |
I like both of you as posters, but why bother replying with this nonsense? |
Because it's true? ... I have no faith in Korean banks and live on the side of a hill with lots of mountain trails nearby. A certain number of steps off of it at a particular spot is my stash. Better than trying to hide money in your apartment with theft one of the true crimes in this country.
A side benefit is that it's harder to spend impulsively as twice I've turned around while on my way to take out some bills. |
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Hanson
Joined: 20 Oct 2004
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| Posted: Fri Feb 23, 2007 5:55 pm Post subject: |
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| VanIslander wrote: |
| Hanson wrote: |
| SuperHero wrote: |
| I stuff my money into my mattress. |
| VanIslander wrote: |
| In a hole underground in the mountains. |
I like both of you as posters, but why bother replying with this nonsense? |
Because it's true? ... I have no faith in Korean banks and live on the side of a hill with lots of mountain trails nearby. A certain number of steps off of it at a particular spot is my stash. Better than trying to hide money in your apartment with theft one of the true crimes in this country.
A side benefit is that it's harder to spend impulsively as twice I've turned around while on my way to take out some bills. |
Fair enough - sorry, I assumed you were taking the piss.
You do realize that this is not at all the best way to save, not to mention that you are actually losing money in the long term, due to inflation, right? |
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Hanson
Joined: 20 Oct 2004
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| Posted: Fri Feb 23, 2007 5:57 pm Post subject: |
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| 4 months left wrote: |
| If you put it in an RRSP you will have to pay Canadian tax on your Korean salary so it isn't really advisable - Korea tax 3% vs. Cnd tax 40%. Get a relative to open an investment account to avoid paying the taxes. |
A friend of mine, who has considerable knowledge in this area (RRSPs) told me the exact opposite. Could you provide a link on this? |
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crazy_arcade
Joined: 05 Nov 2006
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| Posted: Fri Feb 23, 2007 6:13 pm Post subject: |
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| Hanson wrote: |
| 4 months left wrote: |
| If you put it in an RRSP you will have to pay Canadian tax on your Korean salary so it isn't really advisable - Korea tax 3% vs. Cnd tax 40%. Get a relative to open an investment account to avoid paying the taxes. |
A friend of mine, who has considerable knowledge in this area (RRSPs) told me the exact opposite. Could you provide a link on this? |
I was just back in Canada and my banker told me that I would be taxed on my rrsp's and having it as an asset in Canada could be used in a tax case against me...
but one of the real advantages of rrsp's is the ability to use them against your taxes when you're working in Canada. Anyways, Van Islander, hoarding your cash like that is bad for you financially. If you have a lot of money saved up you could me making some great interest in a protected savings account with ING. |
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VanIslander
Joined: 18 Aug 2003
Location: Geoje, Hadong, Tongyeong,... now in a small coastal island town outside Gyeongsangnamdo!
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| Posted: Fri Feb 23, 2007 6:13 pm Post subject: |
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| Hanson wrote: |
| You do realize that this is not at all the best way to save, not to mention that you are actually losing money in the long term, due to inflation, right? |
Great way to save, not a way to make money.
Inflation is negligible in the short term, and my saving are for the medium term, 1-3 years.
Once I've saved $50,000 U.S. with no plans to spend it in the near future, then I'll start worrying about inflation. |
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mrsquirrel
Joined: 13 Dec 2006
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| Posted: Fri Feb 23, 2007 10:15 pm Post subject: |
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| HSBC offshore account in Jersey. |
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white tiger
Joined: 28 Jan 2003
Location: Seoul
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| Posted: Sat Feb 24, 2007 12:44 am Post subject: |
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not trying to shake the boat, but does anyone else see the humor in:
| Quote: |
I have a high interest GIC that is locked in at 4%.
I have a high interest ING savings account which I think is giving me 4.5% right now |
?
i guess 'high interest' is a relative term. im jerking off to "Retire Young, Retire Rich" right now. Good read. Does 4% even cover inflation? NOt sure how much it was in 2006... |
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ghost
Joined: 06 Dec 2006
Location: Many congenial places
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| Posted: Sat Feb 24, 2007 7:59 am Post subject: reply |
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The inflation rate in Canada is about 2% per annum, so the 4.5% interest comes to about 2.5% interest - not great.
Does anyone invest/work with mutual funds? The return in Canada was over 8% in 2006.
Ghost |
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RACETRAITOR
Joined: 24 Oct 2005
Location: Seoul, South Korea
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| Posted: Sat Feb 24, 2007 8:47 am Post subject: |
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| I buy plane tickets to bring more slackers to the country. |
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