We'll show you how to borrow to invest

Sue Wyseman, Certified Financial Planner

You know it’s important to contribute to an RRSP but what if you just can’t find the extra money to do it? Or maybe you’re already contributing but wish you could be doing more. Many financial advisors will tell you it pays to borrow to invest. The tax savings plus investment return will often outweigh the loan interest paid.

For members who want to make an annual RRSP contribution. » Consider an RRSP loan, designed for smaller amounts. Repayment is automatically deducted from your account and is paid back within one year of borrowing.

For members who have not made contributions to their maximum and would like to catch up. » Borrow funds and use up the RRSP contribution room you have accumulated in previous years. By borrowing to invest in an RRSP you may benefit from a tax refund that can be applied back to the loan, helping you save on interest costs and reduce the time it takes to pay off the loan.

Find out how much contribution room you have in your RRSP. Call the T.I.P.S. hotline at 1-800-267-6999 or register online at www.cra.gc.ca/myaccount. You will be asked to provide your social insurance number, your month and year of birth, and the total income you reported on line 150 of your last filed return.