Borrowing for your RSP can help build towards your retirement
Borrowing for your RSP can help build towards your retirement
Being able to contribute the maximum possible for your Retirement Savings Plan (RSP) is the best way to build a secure retirement. Not everyone can max out their RSP contributions and need a little help.
That’s where Encompass comes in. Talk to one of our advisors about a top up loan, or a line of credit.
Potential tax savings
Keeping money out of the tax man’s pocket is something that most Canadians try to do as best as they can. Maximizing your RSP contributions is the best way to not only reduce the amount of taxes that you may have to pay to the Canadian Revenue Agency (CRA), but those funds will also go directly into your retirement funds – which most people fear they don't have enough.
It’s simple, you borrow to help top up your RSP contribution for this year, or room you may have from previous years. Not only will that allow you to save on the taxes you would have paid the government from your marginal tax rate, but also getting it into your RSPs earlier helps build through investment growth sooner than later. All those funds are sheltered from taxes, as long as it is in your RSP.
Ways to grow your money
Benefits of an RSP
- RSPs can be invested in many different ways – in stocks, bonds, mutual funds, term deposits and so on.
- Deposits and interest are 100% guaranteed by the Credit Union Deposit Guarantee Corporation
- Maximize your tax refund
- Preferred interest rate when you purchase an investment product
- Allows you to put money away for retirement
- Option to use your tax refund to pay down the loan
Calculate your potential
- Try out our Retirement calculator
- Try out our TFSA calculator
- Already retired, and now want to know how to pull funds from your RRIF? Check out our RRIF calculator
- Looking to start a Registered Education Savings Plan? Try the Education calculator.
Top it up to maximize your tax return
- Top up loan will give back between 20%-40% of that contribution on your tax return (depending on your tax bracket)
- Take that return and invest right back to increase your return even more OR;
- Take the return and pay down the loan - no penalty
- Short term loan - usually paid back in one year
- That's money directly into your retirement, not taken in taxes
Featured RSP-Eligible Term Deposits
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