Are you one of the many investors who have remained on the sidelines through the poor market conditions over the last few years? It doesn't take long to build up a significant amount of contribution room, and this unused room represents a great tax-savings opportunity.
If you have a large amount of unused contribution room, you might want to consider an RRSP “catch-up” loan. A catch-up loan allows you to borrow all or a portion of your eligible contribution room to deposit into your RRSP.
The benefit of a catch-up loan is that any amount you contribute can be deducted from your income this year, or carried forward to future years, resulting in significant tax savings or even a substantial refund. You can use your refund to either pay down your loan balance, or make a further contribution to your RRSP (which begins the cycle of tax savings anew for next year!).
Furthermore, any growth of the investments within your RRSP can accumulate tax-deferred until you need the money for your retirement. This allows your investments to compound at a higher rate year after year. Over time this will make a huge difference in the amount you have available for your retirement, when compared to investing outside of an RRSP.
If you would like to take advantage of this opportunity and see if an RRSP catch-up loan makes sense for you, or would like some more information about RRSP investing in general, feel free to give me a call at (604) 875-8878 or send me an e-mail.
Mykhaylo Arbetov, CFP, FMA
tel: (604) 875-8878
fax: (604) 648-9470
e-mail: Michael@Arbetov.com
website: www.ArbetovInsurance.com
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