3.01.2007

Really Rad Savings oPportunity

That title was hard to come up with... HAHAHA! I'm sooo funny! But anyways, it's time for RRSPs! Some of you may have been listening to Cfun 1410 when I made the absolutely horrible mistake of saying it's bad to borrow for your RRSPs. Well, it's not always! I just assumed that, where there is debt, there is bad interest...
But not for RRSPs! As many of you may know, the government doesn't tax savings you put into a RRSPs, unlike all other loans. So because of this, you make more money. And also, interest rates on RRSP loans are one of the cheapest forms of loans, so what you make off of putting money into an RRSP can totally defeat what you are paying for it! So in this way, you can make a lot of money, without making a cent! But remember, in the end you have to pay off that debt anyways. So even though that loan can indeed become an asset, it is a liability at the same time.
RRSPs are important to contribute to in any way you can because it's such an important retirement tool. So while it's good to borrow for an RRSP donation, it's even better to not only borrow, but use your own money as well! Because you know what they say. A lot is better than nothing!

3 comments:

koreadude32 said...

say thankyou for the idea paris

Munnybagz said...

NO!

Anonymous said...

So, basically, you went home, and mommy told you that the "advice" you were giving out wasn't quite right, so you're retracting it now?

You're ridiculous. Stop calling yourself a financial advisor.