By: Kevin-Barry Henry, #1 Bestselling Author
An RRSP loan can assist you in ensuring that you are taking advantage of RRSP tax-deferred investing. One of the best ways to build a secure retirement is to maximise your annual RRSP contribution.
In many cases getting an RRSP loan is a refund opportunity that is largely ignored. It is the government’s gift that almost nobody takes advantage of.
Borrowing from your RRSP may make sense if you:
- Want a better way to manage contributions and cash flow
- You did not make your full contribution the previous year and you have fallen behind
- You have a lot of catching up to do
What are the advantages of an RRSP loan?
- A great way to meet your retirement goals
- Allows you to maximise the benefit of saving for retirement
- Increases your potential tax refund
- Use unused contribution room from previous years to accelerate tax-deferred savings
- Maximise investment opportunities with more cash to invest
- Simple term set up, generally can benefit from lower rates than usual during RRSP season
In short, making a contribution up to your maximum contribution amount may help to reduce the taxes you must pay. You can choose a payment schedule that is right for you and you can take advantage of aggressive interest rates – you can choose from either fixed or variable – offered by the carriers because they want your business. Many carriers will even defer the start of the payment schedule until you receive your tax refund.
Getting an RRSP loan may be a great way for you catch-up on your retirement objectives, reduce your income tax bill or maybe even get yourself a refund.
If you would like to discuss whether or not an RRSP loan is a good idea for you, please feel free to reach out to me for FREE 15-MINUTE CALL OR ZOOM
THIS ARTICLE IS PROVIDED AS A GENERAL SOURCE OF INFORMATION ONLY AND SHOULD NOT BE CONSIDERED TO BE PERSONAL INVESTMENT OR LEGAL ADVICE. READERS SHOULD CONSULT WITH THEIR FINANCIAL OR LEGAL ADVISOR TO ENSURE IT IS SUITABLE FOR THEIR CIRCUMSTANCES.