Comments on: Mix your RRSP contribution with an investment loan http://www.thefinancialblogger.com/mix-your-rrsp-contribution-with-an-investment-loan/ This is where your finance takes place Mon, 13 Oct 2008 04:52:45 +0000 http://wordpress.org/?v=abc By: The Financial Blogger http://www.thefinancialblogger.com/mix-your-rrsp-contribution-with-an-investment-loan/#comment-1792 The Financial Blogger Fri, 08 Feb 2008 12:17:48 +0000 http://www.thefinancialblogger.com/mix-your-rrsp-contribution-with-an-investment-loan/#comment-1792 Traciatim; You are right by saying that most people will probably not withdraw their RRSP contribution in one shot. However, if you only have RRSP investments, you will not be able to withdraw 100K to buy a vacation property or a rental property. Having non-registered will allow you more flexibility. Traciatim;
You are right by saying that most people will probably not withdraw their RRSP contribution in one shot. However, if you only have RRSP investments, you will not be able to withdraw 100K to buy a vacation property or a rental property. Having non-registered will allow you more flexibility.

]]> By: Traciatim http://www.thefinancialblogger.com/mix-your-rrsp-contribution-with-an-investment-loan/#comment-1788 Traciatim Thu, 07 Feb 2008 14:46:39 +0000 http://www.thefinancialblogger.com/mix-your-rrsp-contribution-with-an-investment-loan/#comment-1788 How many people will actually collapse the RRSP in one shot if it has that amount in there anyway? In this case it would be converted to an RRIF or some other similar vehicle and paid out over 10 years or so. If you keep all of your fixed income investments inside the RRSP and all of your capital gains and dividends out. That makes the whole scenario fairly tax efficient. With a spouse the RRIF income could also be split as pension income. Plus, if you're in a 40% tax bracket, you've got to be making 75K+ a year. If he can only put away 300 bucks a month he's only putting away 4.8% of his salary. Since the 'golden rule of saving' is to put away 10% of your income to retire wealthy, he's really falling short. That's going to be one rude awakening when they retire and have to severely cut back on their lifestyle. How many people will actually collapse the RRSP in one shot if it has that amount in there anyway? In this case it would be converted to an RRIF or some other similar vehicle and paid out over 10 years or so. If you keep all of your fixed income investments inside the RRSP and all of your capital gains and dividends out. That makes the whole scenario fairly tax efficient. With a spouse the RRIF income could also be split as pension income.

Plus, if you’re in a 40% tax bracket, you’ve got to be making 75K+ a year. If he can only put away 300 bucks a month he’s only putting away 4.8% of his salary. Since the ‘golden rule of saving’ is to put away 10% of your income to retire wealthy, he’s really falling short. That’s going to be one rude awakening when they retire and have to severely cut back on their lifestyle.

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