Strategic use of credit can help you get ahead, by getting money into your RSP sooner.
Over the long term, the benefits of deferring taxes and earning compound interest may far outweigh the interest cost of using a loan or line of credit to contribute to your RSP.
For example, say you skip an RSP contribution of $1,000 when you are 29 and don’t make it up in a future year. By the time you are 69, your RSP will be worth $7,040 less, assuming an average annual rate of return of 5%.
Tips for making it work:
Apply online today for an RSP loan.