Posted on: 28-09-07 13:23:42
In most cases, Borrow to Invest will be better than RRSP. This is because of many factors like Tax Slab, Int deduction allowed by CRA on borrowing, Capital Gains treatment on your growth in open funds etc. Make CRA / Government your partner in your wealth building.
John
johnfca@hotmail.com
Quote:That depend on what you are investing in.
Originally posted by johnfca
In most cases, Borrow to Invest will be better than RRSP. This is because of many factors like Tax Slab, Int deduction allowed by CRA on borrowing, Capital Gains treatment on your growth in open funds etc. Make CRA / Government your partner in your wealth building.
If you are going to invest monthly income or income-type funds/trusts, you are better off investing within an RRSP.
If you are going to invest primarily in equity growth companies, you are better off investing outside of the RRSP.
Note that typically equity growth oriented investments are much riskier than income type investments.
If you are leveraging to invest in equity, you have to have a high tolerance for risk.
Most folks find it easy to fill out bank questionnaires for aggresive growth high risk funds, but a large percentage of such people bail out when their investments keep falling year after year for several years - very few average income, middle class folks can tolerate 40% - 50% reduction in their investment values over a long period of time.
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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
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