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Benefits of an RRSP Loan

January 27, 2012

Benefits of an RRSP Loan

What’s your situation?

  • You want to grow your investments and reduce your taxes.
  • You want to pay off debts & lower your monthly payments.
Note: Your Future Financial Group’s Calculations have been reviewed by an accountant and verified on government websites. Your income and tax situation may be different upon filling and should be reviewed by a certified accountant. All Calculations are approximate and for the purpose of illustrating the concepts.

How It Works:

Example: Husband & Wife with 2 children

Spouse Earning Example

 

A. Growth on your money

RRSP 6% Growth

 

B. Reduce your taxes

RRSP Reduce Taxes

C. Government benefits

YFFG RRSP Government Benefits

Total Tax Refund and Government Benefits: $24,680!

 

Quick Review

Apply for $50,000 RRSP loan minus $24,680 in tax savings = Your cost $25,320
(plus interest charges depending on loan term and interest rate.)

Growth on RRSP for Retirement: $287,174
Plus Tax Refund and Government Benefits: $24,680

Use your government tax refund and benefits of $1,028.33 per month to pay for your $564.00 per month RRSP loan.

 

Resource Downloads:

Benefits of an RRSP Loan (PDF)
Loan Application Form (PDF)



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