15 Jul RRSP vs TFSA by Steve Hebden CFP
- Pay yourself first with a pre-authorized chequing contribution plan
- Catch up on unused RRSP contribution room with an RRSP loan
- Gives you more money earlier to grow your investment.
- Potentially creates a larger nest egg down the road.
- Reduces this year’s tax bill through an income deduction equal to the amount of your allowable RRSP contribution.
- Borrowing your RRSP contribution doesn’t have to be costly and you can use any tax refund to help pay down your RRSP loan. This means you’re benefitting from tax advantages right away.
- Despite the advantages, RRSP loans aren’t right for everyone.