A question that may come to mind when one is debating on what is the better registered investment vehicle, the RRSP (Registered Retirement Savings Plan) or the TFSA (Tax Free Savings Account) is “would you rather pay tax on the harvest or the seed?”. When looking at the tax deferral aspect of the RRSP, some may say that what good are RRSP’s you pay tax on them when they come out – that’s true but if used properly they come out at a lower tax than when you contributed to them.
For
example using today’s numbers. (Assume a taxpayer in Alberta with
$120 000.00 in gross income, rate being used is 26% Federal Tax and
10% Provincial Tax).
Joe Albertan contributes $1000.00 when he is in the 36% tax bracket, he would reduce his taxes by $360.00. When he draws it out years later, let’s say a $1000.00 withdrawal in the 25% tax bracket, he would pay $250.00 on this $1000.00 – in this example, he comes out ahead by $110.00 – we are not even factoring in the deferred growth on investments held within the RRSP (the harvest).
On the
flip side of the coin using the same numbers.
Joe Albertan decides to contribute the $1000.00 into his TFSA instead. He would pay the 36% tax or the $360.00 and would contribute $640.00 to the TFSA in after tax dollars (the seed). The growth on the $640.00 would never be taxed again (under today’s laws).
It is hard to argue definitively on which vehicle is better because it all depends on the individual’s current tax situation – it is not a one size fits all position. The RRSP would not be of any use to an individual if he or she is in a lower tax bracket now and a higher one when the money is needed, and the TFSA does not offer any tax deferral in the present to those that are in a higher bracket now than they will be in the future. In my personal opinion, if you are in a higher income bracket, it may be best to use both vehicles as the RRSP allows you to save from the first dollar earned (dollars before tax) and move the refund – if any to the TFSA as it is funded with after tax dollars. It is also important to know that each registered vehicle comes with it’s ups and downs which will be summed up in a different post, but based on tax alone “Would you rather pay tax on the harvest or the seed?”
The
forth and final book did an excellent job of setting up for the 3rd
and final Descendants movie. As usual, the book was fun to read and
added more explanation to the Descendants world as a whole. I must
admit that this book was not as well written as the lead in to
Descendants 2, “Rise of the Isle of the Lost”, but still served
its purpose. This book seemed somewhat rushed compared to the others.
This book does an excellent job setting the stage for the new characters of Hades and Celia. It also expands on what Uma has been up to since Descendants 2. It is evident, when reading about Uma that she actually did miss her crew, or dare I say her friends. I believe that the introduction of Hades was done very well since it gave the reader a glimpse into what his life was like before he got banished as well as how he had tried to escape the Isle a few times. I like ho Hades is introduced and the following can sum him up – “one of the miserable wretches on the Isle of the Lost is none other than Hades. He too lives on rotten food and wicked dreams but unlike the other villains, who became ageing losers. Hades is a rock star”. I think that Del La Cruz did a reasonable job with the creation of Celia, though it doesn’t appear that Celia is too evil – a trickster maybe but not necessarily evil. It seems that Celia actually wants to go to Auradon.
This
book did something that none of the others (books or movies –
though little detail was given in Descendants 1) have, it clearly
establishes the ages of the characters. Mal, Jay, and Evie are
graduating seniors, which means they are 18 or about to be 18. This
helps me understand the opening scene of Descendants 3. Carlos and
Jane are juniors, which means they are 17 or about to be 17. This is
important as the VK’s have been in Auradon for two years. I guess it
can be assumed, for those who have a keen sense of detail – that
the ages of Mal and Ben are given in the first movie as we know Ben
is 16 at the time and he states in the dating scene that they (Mal
and Ben were the same age).
One
of the major themes in the book has to be – life is going to change
when you grow up. This is illustrated a few ways such as the villian
kids “VK’s” growing apart and doing their own things. Mal,
becoming more a lady of the court – the future queen of Auradon,
Evie continuing to make money with the fashion business, Jay deciding
if he wants to go to college or become an international ROAR star.
Since Carlos is a year younger, he is now spending a lot more time
with Jane.
The
character development of Mal is always good to see. In this book, the
reader is able to see that although she takes her duties in Auradon
seriously, she still does not have the heart to turn her back on her
history. This is shown when she wants to make a special trip to the
“Isle of the Lost” while she is out touring Auradon and learning
about it’s different peoples – she is not afraid to speak up when
the Isle is left off of the list of the places to visit.
I
believe that Jay had showed maturity when deciding on a college with
his selection process as he gave serious thought to where he wanted
to end up. I think it was clever that Jay did not go to Agrabah State
University as he was concerned that his father’s (Jafar’s) reputation
would follow him around and he wanted to be his own person without
the stigma of his father overshadowing him. This shows the reader, at
least in my opinion that Del La Cruz wanted to show the reader that
decisions aren’t always easy even though there was part of Jay that
wanted to return home.
As
always, Disney was very creative with references throughout the book.
For example, I liked the names of the colleges like Agrabah State
University (ASU), Magical Institute Training (MIT), and Sherwood
Forest University. I find it interesting that the letters of the
first two colleges are the same as well known colleges in the United
States of America, they go along nicely with the whole “United
States of Auradon” theme. They further continue the whole theme
with the reference to the all important SAT (Salagadoola Abracadabra
Test).
Mal
decides to go to the Isle as a representative from Auradon to focus
on the growth of the Villain Kid (VK) program. I think overall the
adventure to recruit VK’s was an important element of the book as the
four reformed VK’s had to show growth when thinking about how to
recruit. I liked the fact that Mal and company got no results when
they were trying to shove Auradon culture down people’s throats –
this highlights the theme that not everyone thinks they are bad just
because they are not the same. It also shows in a silly way that you
can not just march into someone’s country and change their values
overnight (naturally Del la Cruz probably did not want to focus on
this theme as it is not fun, but changing people’s values and belief
systems can actually be seen as core to their recruitment process). I
actually thought it was clever when they came up with the concept of
Villain Kid (VK) Day as it actually caters to the market that they
are trying to recruit. Villains like to feel famous and important –
mind you so do people who are not necessarily evil. It appeared that
after VK Day was announced, people actually felt that going to
Auradon was actually a big deal. The whole adventure shows the reader
that not everything is black and white as the VK’s got more results
when they actually thought of what other VK’s felt rather than
telling them what they want.
I also
like the development of Hades relationship with Uma or should I say
there doesn’t seem to be much of a relationship because Hades and Uma
do not necessarily see eye to eye. There are times when it appears
that Hades may think that Uma is an irrelevent little girl. I kind of
got that impression.
As for
the rest of the book, it just goes on to say what has happened
leading up to the graduation and after the graduation and served as
further filler – not necessarily a bad thing in this case – to
allow the reader to learn more about Auradon and its culture of
goodness. As always, I believe that the books should have been turned
into a mini series which was available to watch – though the books
are good too as it leaves a little bit to the imagination.
In my next post, I will evaluate how Descendants 3 ties everything together for a successful completion of the series.
It is a known fact that many
people do not like the RRSP and some even go as far as to say that
they hate the things. Even accountants hate them – they always say
that a dollar today is better than a dollar tomorrow yet when the
question “how can I reduce my tax bill comes up” the default
answer is often “contribute more to your RRSP”. A dollar today is
often better than a dollar tomorrow but you also want to have a
dollar tomorrow for retirement and everyone knows deep down that the
Canada Pension Plan (CPP) and Old Age Security (OAS) will not
necessarily provide you with a good retirement, if they exist when it
is your turn to retire.
The RRSP does have its place in your tool box – it creates a deduction against your net income, a deduction not a credit. For people in a higher tax bracket this makes a difference – please refer to my previous post “Deductions and Credits: The Difference” for clarification if necessary. I will emphasize on what I believe to be the key point by using an example of an individual in the 30.5% tax bracket living in Alberta who has invested $1000.00 (The rate is 10% in Alberta and 20.5% Federal) versus the lowest rate in Alberta of 25% (10% Alberta, 15% Federal).
If you are in the 30.5% tax
bracket the $1000.00 deduction will reduce your tax payable by
$305.00
If you are in the 25.0% tax
bracket the $1000.00 deduction will reduce your tax payable by
$250.00
A $1000.00 non-refundable
tax credit on the other had will reduce your tax payable by $250.00
That is why the RRSP really has no effect in the lowest tax bracket. Although it may be beneficial in two unique cases. Please note that these two programs are like a loan from yourself and that the tax bracket argument down below applies to this as well.
The home buyer’s Plan –
You can borrow up to $35 000.00 from your RRSP to put down on a first
home. You have two ways to pay it back, by contributing to the RRSP
or by adding 1/15 of the amount withdrawn into income (You have 15
years to pay it back). If you are in the lowest bracket it isn’t a
bad thing to take it into income.
The Lifelong Learning Plan –
You can borrow up to $20 000.00 from your RRSP towards your
education. You have the two same ways to pay it back as above – the
only difference is you have 10 years to pay it back.
One neat thing that people
may or may not know is that you can carry your RRSP contributions
forward until you want to use them, some accountants I know of will
apply them yearly regardless. As a result, if you run into that
banker who says you should set up a pre-authorized checking (PAC)
plan for $25.00 per month – you can accrue your yearly $300.00 RRSP
contributions until you are in a higher tax bracket when they will
save you a minimum of an extra $55.00 per thousand. Another important
thing to consider about the RRSP is that you save
from the first dollar earned (dollars before tax).
It
is important to know that despite the fact that the RRSP does create
a deduction against income, it is to be used as a tax deferral –
they are NOT tax free. Some people I speak to say, why would I put
into the RRSP – I am double taxed. When looking closer at the
picture, you are not double taxed at all – remember the RRSP is a
tax deferral – NOT tax free. You get the deduction and savings when
you contribute to and apply the RRSP contribution to your tax return
(You saved from the first dollar earned). It is correct that you pay
tax when you go to withdraw because, in practice you were not taxed
yet. One of the biggest problems I often see, is people will withdraw
the RRSP when they are in a higher tax bracket or will withdraw and
the income inclusion will put them into a higher tax bracket. If you
withdraw the money at a higher tax bracket than when you contributed,
it defeats the purpose. I’ll illustrate by using the example above.
If you are in the 30.5% tax
bracket the $1000.00 deduction will reduce your tax payable by
$305.00
If you
are in the 25.0% tax bracket the $1000.00 deduction will reduce your
tax payable by $250.00
If you
contributed in the 30.5% bracket and withdraw in the 25.0% bracket,
you will have saved tax at $55.00 per thousand. However, if you
contributed at the 25.0% bracket and applied the deduction and
withdraw in the 30.5% tax bracket, you will have paid $55.00 per
thousand more in tax. Please note that this example holds true for
both the Home Buyer’s Plan and the Lifelong Learning Plan.
The
RRSP is not for everyone; it is a strategy that should not be used as
a bank account, sometimes the Tax Free Savings Account (TFSA) may be
better. I will explain the tax differences in an upcoming post titled
“Would You Rather Pay Tax on the Harvest or the Seed?”.
When looking at these
strategies – it is always good to review your unique situation with
an independent tax advisor or planner, sometimes it is good to get a
second opinion as well because no one person knows everything.
Descendants 2 was an excellent stand alone movie for all ages who want lighthearted family fun. Some may even consider it better than the first movie. I guess this would make sense as there are two books written leading up to the second movie (“Return to the Isle of the Lost” and “Rise of the Isle of the Lost”), along with the Wicked World cartoon shorts.
Mal’s identity crisis – she wants time to breath.
In the movie, it is clear that one of the main themes is identity. This becomes evident when the viewer sees Mal struggle with her elevated status as the King Ben’s girlfriend (the future Lady Mal). She puts on a brave face by using her spell book to make her hair blonde, and appears both awkward and uncomfortable maintaining a princess-like mindset. She has a hard time keeping up appearances and is somewhat shocked by what she has become.
Carlos, don’t you ever miss the Isle?
Mal addresses these concerns with Evie, Carlos and Jay who are content with their new lives in Auradon and have no desire to return to the Isle of the Lost. Evie want’s Mal to be herself and not depend heavily on magic, she goes so far as to tell Mal that the spell book should be in the museum along with her magic mirror.
King Ben discovers Mal’s reliance on magic, since she used it to make his surprise lunch and she is forced to come clean about her insecurities, causing an argument that eventually leads Mal to question her position in life. This struggle is shown when she goes back to the Isle and throughout most of the movie.
It is clearly evident that Evie loves her life in Auradon and is planning a future there. She is happy with her fashion design business and Doug (though this is evident in the movie, it is made more clear if you read “Rise of the Isle of the Lost” first) – to me Evie has grown a lot from the Evil Queen’s daughter being concerned with marrying a prince, which is what her mother wanted for her. Evie is also shown to be the most successful financially as her business is growing due to the high demand for Cotillion formal ware. She would rather work than try to marry into a higher class – this in contrast to Evie being more interested in Prince Chad at some point in Descendants (first movie) which is what Evil Queen would have wanted for her. In this regard, Evie doesn’t have to question her identity any more since she knows who she is.
The viewer can see a lot of growth in Jay as well as he has come to the conclusion that he does not have to go around breaking rules and stealing stuff. Disney is very clever when using word play as Jay wants Lonnie to be part of the R.O.A.R team but she is unable to because of Auradon’s rules -“A team is comprised of a captain and eight men”. In order to help Lonnie in a selfless act, he relinquishes his position as captain and gives the position to Lonnie. I am impressed with this as far as Disney goes because they like to paint everything as ultimately good or evil and this play on the rules actually illustrates that there are gray areas as well.
There is a great deal of growth and development for Carlos as well. In my opinion Carlos had been the most developed villain kid (that is if you read the books and watch the movies in order) which is why, I think that it should have been created as a series – though the blended entertainment works too. Carlos started of being timid and lacked confidence, probably due to Cruella’s treatment. From his help in searching for the Dragon’s Eye Scepter to standing up to his mother, he becomes more and more confident as the series goes on. Despite his growth in confidence, we see is internal struggles when building up the strength to ask Jane out – it is evident that he has some doubt built up (am I good enough for her? Will I be rejected? etc). This is actually another universal theme laid out in Disney fashion – boy likes girl, boy builds up confidence to ask girl out, boy gets yes – everything works out in Disney movies. I kind of wish that it weren’t always the case as it gives some people false hope and high expectations, but in this movie it works.
Another theme that shows up in the movie is the theme of opposing cultures. Ben and company feel that they must bring Mal back from the Isle because she is no longer seen as a villain kid (VK), and as a result must be brought home. Opposing cultures is an evident them as the movie takes place in both Auradon – where the sky is always blue and of course the Isle, where it is dark and dreary. Life is different on the Isle and this is creatively shown in the song “Chillin’ Like a Villain” when King Ben is dressed in his Isle garb to look more like the locals rather than in his formal ware of Auradon. I thought the use of “Chillin’ Like a Villain” was a creative and fun way of illustrating that you need to respect different cultures and norms rather than always falling back on your own.
Uma – large and in charge. What’s my name? Say it, say it…
The book “Rise of Isle of the Lost” was also a great lead in as it did a very good job of introducing the reader to other Isle locals such as Uma. Del la Cruz developed Uma’s character well and the movie further explains her internal hatred for Mal and her desire to be better. Uma is considered to be the new leader of the Isle since Mal left to live in Auradon. The movie does well to expand on Uma’s character as laid out in the book – such as rage, jealousy, and her narcissistic tendencies. Her narcissistic tendencies are on full display when she sings her famous song “What’s My Name” – this song highlights the importance she places upon herself above other people. For example when Harry says something along the lines of “she’s the captain and I’m the first mate” – it is evident that he knows his place.
Uma also has conflicts – the movie does a good job of creating her hatred for Mal but in a way makes the audience sympathize with her when she is trying to do what is best for the Isle. One of her pet peeves and sources of resentment is that she was not invited to Auradon when Mal, Evie, Carlos, and Jay were. Due to her competitive nature and her history with Mal – this adds to the conflict. The larger question is – is Uma truly evil or is she only concerned about her people.
Harry as a villain, is exactly what one would expect from Del la Cruz’s description – the movie did a really good job portraying him from his crazy, unpredictable behavior to his bullying. As well he is also shown to be obsessed with his hook – even though it’s an extension of his body – he did not come across it naturally. His craziness is evident when he threatens Mal or wants to deal with King Ben.
I probably shouldn’t of called her “Shrimpy”
I must say that one of the characters that was kind of lacking in the movie was Gil. He did not have a big part, only a few lines, and it seems that he was just added for comedic value. Gil does not seem like a villain as it seems that he is a little friendly. The disappointment with Gil is not a result of bad acting by Dylan Playfair – the character should have more of a role. It was hilarious when he made reference to “shrimpy”. Gil looks evil, but is he really? In all fairness though, not everything would fit into the movie and squeezing everything in would make it long and drawn out – much like the movie Titanic.
I think that Descendants 2 left off at the perfect place to keep the suspense going with Uma saying “you didn’t think this was the end of the story, did you?”
In all, I think that Descendants 2 was better than the first movie as there was more history and a much larger story line created before it was shown. It is evident that if you read “Rise of Isle of the Lost” before watching Descendants 2 you would see how it served as the perfect prequel to it. I feel that Del la Cruz tied the book and movie together perfectly and that nothing was out of place or added in just because – aside from Dude talking.
In my next post, I will talk about “Escape from the Isle of the Lost” and how it fits in with the overall Descendants universe.
The book “Rise of the Isle of the Lost” is the third book written by Melissa Del la Cruz and is the direct prequel to the Descendants 2 movie. I must say that this book led into the movie perfectly for many reasons. Descendants 2 is a good movie without reading the book – but is a much better movie if you read the book first, in my opinion anyways – since I believe that all of the books should have been made as movies so they could have been shown in order. The Rise of the Isle of the Lost is basically centered around King Triton’s trident and trying to recover it after it crossed over to the Isle. The next adventure that the four villain kids (VK’s) go on is the quest to recover it to keep a friend out of trouble. The friend in question was Arabella,one of King Triton’s many granddaughters and a niece of Ariel. Arabella, did something out of character for someone resident in Auradon – she borrowed the trident and did not return it. Mal and company had to recover it as it would have caused many dangers to Auradon if it fell into the wrong hands.
Rise
of the Isle of the Lost gives us a better introduction to the
villains who will eventually make Descendants 2 very entertaining to
watch such as Uma, Gil, and Harry Hook as well as building on to
their characters. On top of that the reader will learn how Uma had
come across her much hated nick name “Shrimpy” as well as her
overall rivalry with Mal. Uma can be seen as a negotiator much like
her mother Ursula. Harry is made to be seen as an unpredictable
bully, and Gil is made out to be the stereo typical guy who is really
strong but not all there – he is actually made out to be dense. Del
la Cruz also introduces the reader to some of the scenes that will
make their way into the movie such as Ursula’s Fish and Chip
Shoppe, the famous hair salon “Curl Up & Dye” and of course
the lost revenge (the ship deck). The book is also able to bring the
image of the Fish and Chips Shoppe to life along with the famous
phrase “You’ll take it how I make it”.
Del
la Cruz does a very good job in the development of Uma’s character
as she is able to accurately create Uma’s many emotions such as
rage, jealousy, and her narcissistic tendencies. One is able to see
Uma’s true character when she enters a race to get a ship – she
needs one when the news of the missing trident breaks. She also
creates an accurate image of Harry Hook that, in my opinion will
eventually be portrayed perfectly down to his obsession with his
hook.
One
of the main themes that plays out in this book in my opinion is how
far should you go for a friend. Mal, Evie, Carlos, and Jay wanted to
get the trident so that Arabella would not get in trouble and without
informing King Ben on top of it. The whole situation with the trident
created a dilemma – should the VK’s get the trident without
informing Ben and risk getting caught or not getting the trident and
having Auradon fall. The reader can see that Arabella is being
selfish and greedy since she does not want to get caught for the
situation she had caused. Arabella did not want to own up to her
actions – thus showing cowardice – once again not a behavior
worthy of Auradon. Can the VK’s be considered evil for trying to
protect their friend?
Such behavior, trying to protect a friend despite the consequences is highlighted well too when Fairy God Mother is angry with the VK’s stealing (speed boat) – would she have been as angry if she know that the villain kids had to steal so that they could get back what Arabella stole (trident). I think that the book illustrates the fears and concerns of the VK’s well when they ask themselves if they did the right thing not informing Fairy God Mother or Ben before attempting to get the boat. When reading Rise of the Isle of the Lost, the reader can actually feel bad for the VK’s when they fear getting sent back home since thievery is an unacceptable behavior in Auradon, even to help a friend. The main question in this case is “is helping Arabella worth sacrificing all of the good things in Auradon?’ – in reality would Arabella get sent to the Isle if she did get caught – the answer is probably a no.
Other things that make more sense if you read the book before watching the movie would include how Jay became captain of the R.O.A.R. team over Prince Chad, Evie’s growing business and how it got it’s name as well as how and why Carlos was beginning to have feelings for Jane. The movie was a good stand alone which will be discussed later but it made a lot more sense to those who want substance. I actually watched the movie before reading both “Return to the Isle of the Lost” and “Rise of the Isle of the Lost”.
The Rise of the Isle of the Lost had a perfect ending for the set up – the trident was recovered with both Mal’s spell book and Evie’s magic mirror, Uma’s ship destroyed and the three villains trying to figure out how to deal with Mal next. Through the writing of the “Rise of the Isle of the Lost”, Del la Cruz had created the perfect back drop for Descendants 2 and the conflicts within.
This
book was okay, it had its good and bad points – once again it would
have been better if this book was a movie or part of an ongoing TV
series. It was a light read and still entertaining. In my opinion,
even though this book was good – just served as filler since “Rise
of the Isle of the Lost” actually sets the stage nicely for
Descendants 2 – to be discussed in the next post. Even though I
consider the book to be filler, it was still good in the way that
expanded on both character development and the world in which they
live.
One of the major highlights is it
actually expanded upon the “Descendants world” as it took place
in both mainland Auradon and the Isle of the Lost. As well, it even
allowed the reader to explore the other states that make up the USA
(United States of Auradon) such as Camelot, Neverland, and
Charmington Cove (where Cinderella lives) along with providing a
deeper understanding of the make up of the Isle of the Lost.
I
believe that Del la Cruz did an excellent job with the development of
the villain kids (VK’s), making them feel genuine and well rounded.
The raw emotions of the VK’s are very well illustrated throughout the
book as it shows in the first few chapters that they actually like
being in Auradon better than the Isle thus strenghthening their
internal struggles such as conflicted feelings about their former
home along with their parents.
I also like the fact that it
touched on another important issue – just because people live in
the same place does not mean they are all the same. For example, the
formation of the Anti – Heroes club on the Isle shows that not all
of the residents want to be villainous all of the time or the fact
that despite the fact that Prince Chad lives in Auradon and was
raised in Auradon, he is still a jerk at times (Being a jerk once in
a while doesn’t necessarily make you evil) but being a jerk doesn’t
make you good either. Chad was a jerk when he planted Jay’s face into
the ground. I must admit that the whole anti-heroes club was a good
twist when the VK’s learned that some villains wanted to learn how
to be good, it came as a surprise.
One
thing I must say about this book as it actually shows the growth of
Prince Ben to King Ben – you get to discover the beginning of Ben’s
roots as a leader. He actually has to use his brain and consider
issues such as should magic be used in Auradon to solve problems even
though it has been banned except for special occasions. Even in the
so called good world – this illustrates that one as a leader cannot
look at things as black or white since there are many gray areas. One
of the things I like about Descendants thus far is it does show the
conflicts when examining issues.
Despite that being said – the journey for each VK’s unique talisman seemed to be filler although it taught us more about their histories. The most unique thing about the journey is that the reader finally got to see Carlos stand up to his mother – in person – sort of, or that Mal needed to realize that she needed to depend on her friends. This is obvious.
The book was good, but definitely not the best in the series. In my next post, I’ll examine “Rise of the Isle of the Lost” and how it is an excellent lead into Descendants 2.
