RRSP
Yes or no? Should we keep contributing?

RRSP egg in handBill and Mary have been contributing to RRSPs but now they are wondering if RRSPs are really a good thing. They've heard that they will have to pay extra tax on withdraws and may be subject to clawbacks, loss of tax credits, and supplements.

In most cases RRSP investing is one of the best ways to save for retirement. RRSP investing got a whole lot better when people over 65 were permitted to split RRIF income.

Think of your tax refund as an interest free loan that you don't have to pay back until you start to draw from your RRSP or RRIF. Could you use an interest free loan to invest more money, pay down debt, or invest into your lifestyle? If you invest outside an RRSP you don't have the tax refund to work with. Watch the video and see the difference.

Video - Bill and Mary see the difference between RRSP and non RRSP investments.

What do you think? Are RRSPs good? poll.