Strategies for investing in an RRSP
February 2022 – 15 min read
There’s more than 1 way to contribute to an RRSP
There are important things to consider when borrowing to invest in an RRSP
- Footnote 1
- 1 Assumed for illustrative purposes. To determine specific marginal tax rate, see Government of Canada. (Jan. 2021). Canadian income tax rates for individuals – current and previous years.Opens a new website in a new window - Opens in a new window
Now that you understand more about the various strategies to contribute to an RRSP, you may want to:
Check your CRA notice of assessment to learn how much you could contribute to your RRSP.
Talk with an advisor about which RRSP contribution strategy best meets your needs.
This information is current as of January 2022. The information provided is based on current tax legislation and interpretations for Canadian residents and is accurate to the best of our knowledge as of the date of publication. Future changes to tax legislation and interpretations may affect this information. This information is general in nature, and is not intended to be legal or tax advice. For specific situations, you should consult the appropriate legal, accounting or tax advisor.
Using borrowed money to finance the contributions involves greater risk than contributing using cash resources only. If you borrow money to make a contribution, your responsibility to repay the loan and pay interest as required by its terms remains the same even if the value of your investment declines. Investors should only borrow money to make such a contribution if they have the financial resources to assume the risk of the loss of their investment as well as the repayment of any such loan.