I’m always searching for ways to make money differently. I found another one for retired individuals. Many baby boomers have a ton of RRSP’s and plan on withdrawing their money to maintain their lifestyle. Do you know that when you are withdrawing funds from your RRSP, you are taxed on it? It is government’s pay back time and they can’t wait to get all this fresh money. But there is a way to get around this.
In fact, with the
The first thing you need is an investment loan. Then again, leveraging strategies seems to be the key to make money differently. You don’t have enough cash flow to pay the monthly payment? It’s not a problem!
The interest charged on your investment loan is tax deductible. However, the money you are withdrawing from your RRSP account is taxable. Do you see where I’m going with all this? There you go: if you withdraw $6,000 a year and you pay interest of $6,000 on your investment loan, how much would you pay in tax? 0$.
But wait, where all my money go? I just make you lost 6K to give it to the bankâ€¦ But your investment linked to your investment loan is growing at the same time. Then, if your investment went up by 8K the same year, you just transferred 8K from your RRSP.
However, the technique is not perfect. In fact, you will still have to pay taxes on your investment growth. However, your rate of taxation should be much lower than your regular marginal tax rate.
I’ll cover more of this strategy in the near future. For now, I strongly suggest that you read on taxation or that you get yourself a very good accountant. With all the different way to make money you can find here, you’ll need his help to fill in your tax report.
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