HOW MONEY WORKS: RRSP
1) Is an RRSP a tax deduction? Y___/N___
2) Is the money back from the government a tax refund? Y___/N___
If you answered yes, then you have been misled. An RRSP is a tax postponement not only of the increased tax you will owe but also of the tax calculation which the government controls, not you.
The “refund” is really a loan. You do not know the details of the borrowing costs of the loan because the government will create them when it is time to collect from you.
Ponder this for a moment, the larger your RRSP becomes, the less you actually own! Who should be the recipient of your money, you and your family or the government?
Would you rather have your retirement income taxed or tax free? We specialize in creating tax free retirement income without exposure to and risk of the stock market!
