Comments on: The RRSP Line of Credit http://www.thefinancialblogger.com/the-rrsp-line-of-credit/ This is where your finance takes place Thu, 09 Feb 2012 04:02:52 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: The Financial Blogger http://www.thefinancialblogger.com/the-rrsp-line-of-credit/comment-page-1/#comment-1348 The Financial Blogger Mon, 03 Dec 2007 23:04:15 +0000 http://www.thefinancialblogger.com/the-rrsp-line-of-credit/#comment-1348 Gates, that's another great use, that shows the flexibility of the RRSP line of credit. thanx for your input :-D Gates, that’s another great use, that shows the flexibility of the RRSP line of credit.

thanx for your input :-D

]]> By: Gates VP http://www.thefinancialblogger.com/the-rrsp-line-of-credit/comment-page-1/#comment-1347 Gates VP Mon, 03 Dec 2007 21:57:02 +0000 http://www.thefinancialblogger.com/the-rrsp-line-of-credit/#comment-1347 Another use (that I've used personally) is for big years. A couple of years ago, I had laser eye surgery (5k in December) and 4k in RRSP contributions on a ~41k income. I precalculated my tax return and then took out a loan for a little less than the amount of the return. (about 2k). So i effectively "pre-invested" the loan that I knew I was receiving. When the tax return rolled in, I just rolled it over and still had a little cash back at the end. Of course this is only good if you have cash to inject into the RRSP. Which bears the obvious question: <i>"why not just increase your retirement savings instead?"</i>. In my case, I wasn't meeting the retirement goals and using the cash back from the eyes (which tends to tie up savings) was a good kick start. Going forward, I'd actually try to avoid using the RRSP LOC and just meet your retirement savings goals, but there are definitely some good exceptions here. Another use (that I’ve used personally) is for big years.

A couple of years ago, I had laser eye surgery (5k in December) and 4k in RRSP contributions on a ~41k income. I precalculated my tax return and then took out a loan for a little less than the amount of the return. (about 2k).

So i effectively “pre-invested” the loan that I knew I was receiving. When the tax return rolled in, I just rolled it over and still had a little cash back at the end. Of course this is only good if you have cash to inject into the RRSP. Which bears the obvious question: “why not just increase your retirement savings instead?”.

In my case, I wasn’t meeting the retirement goals and using the cash back from the eyes (which tends to tie up savings) was a good kick start. Going forward, I’d actually try to avoid using the RRSP LOC and just meet your retirement savings goals, but there are definitely some good exceptions here.

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