I’m thinking about spending my tax refund in the spring on Lasik Eye Surgery.
If I keep up with my contribution pace of $662/month from now until December 31st, I will have contributed approximately $7,700 to my Retirement Portfolio (around $23-24k total).
My 2008 RRSP contribution limit is $9,685, so I’ll be well under that amount.
But … if I just stop contributing once I hit my $22k goal, then I’d have an additional $1-2k to save for other things (like a trip around the world, or my EF, or my Condo Down Payment).
Assuming I gross $45k this year, a $7,700 contribution would earn me a tax refund of $2,360 (according to Morningstar’s RRSP calculator). A $5,700 contribution would earn me $1,747. So to contribute an additional $2k above and beyond my $22k goal for 2008, I would “earn” an extra $613.
Well, my tax refund finally cleared into my chequing account, so this is what I did with my $4,485!
- $750 – Travel Fund
- $300 – Emergency Fund
- $300 – Condo Down Payment Fund
- $2,425 – Retirement Portfolio
- $300 – saving for 1/2 May rent
The remaining $410 I used to pay off my Visa card for the month.
This isn’t the exact plan I had for my tax refund (I hadn’t anticipated throwing anything into my Travel Fund or Condo Down Payment Fund), but I’m satisfied with how I split up my money.
My sidebars and NetworthIQ have been updated! :)