Skip to main content

Bias For Clarity

By
Bias for action. Gets things done. Go-getter. Traits companies big and small look for. And for good reason, you're being hired to do things! However, action is a secondary step that often overshadows the primary step, direction.   Clear direction is the foundation that enables our actions to takeoff. Without it, we're stuck in the mud.  Striving for clarity is an underrated skill. Having the courage to ask ( seemingly ) obvious questions, and to check in, making sure we're all on the same page. "O bvious " questions are a low risk, high reward way to add value. At worst, you'll add confidence to our actions. At best, you discover a misalignment that saves us from a dead-end.  The more people, the more clear we need to be. The bigger the initiative, the bigger the risk of reaching the finish line, only to realize expectations were off.  Success is always uncertain. But we can be certain about what we want and what everyone's job is. Things that can be clea
Post a Comment

ELI5: RPP Vs. RRSP

Image
By




So you've landed an awesome job. Good on you! You skim over the package and see a retirement savings program. Even better! In Canada, these plans typically come in two shapes. A Group Registered Retirement Saving Plan (RRSP) and a Registered Pension Plan (RPP), aka a Defined Contribution Plan. Let's see how the two compare. 

Starting with the similarities:

Employer contributions and employee matching. This is why we love these benefits. Employers will contribute a percentage of your salary automatically to your account. On top of that, they will match a portion of your contributions. Who doesn't love free money?

You'll also get a choice in what to invest in - though within the constraints of the plan provider. They'll unusually have a small menu of funds. Try to find the lowest fee option that meets your needs.  

Onto the differences:

The tax treatment is actually the same...but different. Both plans allow you you grow your money tax free. The difference is in how the contributions are treated. The RRP is funded with pre-tax dollars. While a RRSP is funded with after-tax dollars, which are tax-deductible, so also pre-tax dollars (get it?). Same destination, different routes. 

The main difference between the two accounts is flexibility. Both plans are mobile, you can take them with you if you leave your employer. 

The withdrawal rules is where you'll find the RPP to be more strict. Your money is locked in until you retire, whereas a RRSP (despite the name) allows you to withdraw anytime. 

While the RRSP is a bit more flexible, you really can't go wrong with either. Both are great ways to build wealth and get yourself retirement ready. And again, it's free money. 



Comments

  1. AnonymousJanuary 29, 2022 at 6:02 AM

    Free Baccarat & Pai Gow Poker online at FreeBaccarat.com
    Play kadangpintar online Baccarat with our wide selection 인카지노 of Poker variations at FreeBaccarat.com. Baccarat Rules Explained. Baccarat Baccarat Betting Strategy. How to 바카라 Bet on Baccarat.

    ReplyDelete

Post a Comment

Popular posts from this blog

The Art of Giving Feedback

By
Constructive feedback is an awkward affair. You don't want hurt feelings, but recognize the importance of honesty. You've tried the classic "hoping things will get better on its own" and unfortunately it hasn't played out. When giving feedback, here are a few things that I try to keep it mind. Start with empathy. Step into their shoes and understand their story. If you don't know, ask. Be genuinely curious. Feedback is a dynamic affair. Shared communication with a shared goal towards progress. Take the emotion out of it. Focus on the situation, not the person. Focusing on the person adds unnecessary weight to an already emotionally-bloated event.  Be specific. Give clear examples. Vague feedback equals dismissed feedback.  Doing above won't de-awkward things fully, but it will dampen it and increase the chance of better outcomes. 
1 comment
Read more

Bias For Clarity

By
Bias for action. Gets things done. Go-getter. Traits companies big and small look for. And for good reason, you're being hired to do things! However, action is a secondary step that often overshadows the primary step, direction.   Clear direction is the foundation that enables our actions to takeoff. Without it, we're stuck in the mud.  Striving for clarity is an underrated skill. Having the courage to ask ( seemingly ) obvious questions, and to check in, making sure we're all on the same page. "O bvious " questions are a low risk, high reward way to add value. At worst, you'll add confidence to our actions. At best, you discover a misalignment that saves us from a dead-end.  The more people, the more clear we need to be. The bigger the initiative, the bigger the risk of reaching the finish line, only to realize expectations were off.  Success is always uncertain. But we can be certain about what we want and what everyone's job is. Things that can be clea
Post a Comment
Read more

Negative Feedback, Positive Lessons

By
In the battle against plastic bags, a five-cent tax was shown to be much more successful at deterring usage than a five-cent credit for bringing your own bags. Carrots satisfy but sticks sting, and they sting hard. So we default to the less painful choice of avoiding loss. Loss aversion impacts the way we process information. A 2019 study  invited participants to learn through a series of multiple choice questions. Each question only had two options to choose from. Whether guessing correctly or not, they would still learn the right answer.  Despite the identical learning opportunity, participants were much more successful at recalling the answers they guessed correctly than those they got wrong.  "You're right!" feels good. We savour the moment, analyzing every detail.  "You're wrong!" stings. We want to quickly forget, dismiss, and move on.  When we succumb to loss aversion, we miss opportunities to learn. Failure is part of the process. We'll experie
Post a Comment
Read more