Contact: Judy Culford

January, 2001

Phone: (519) 663-2252

A Tax-Deduction Alternative to RRSPs

Many Desperate for Tax Savings Beyond RRSPs

"With RRSP season here, millions of Canadians are wondering about tax-deduction investment alternatives to RRSPs," says Talbot Stevens, financial educator and author of the new bestselling booklet "Dispelling the Myths of Borrowing to Invest".

Mr. Stevens cites many reasons Canadians are seeking tax-saving alternatives beyond RRSPs.

Despite the increased popularity of leveraging, many Canadians are still not aware that when you borrow to invest outside of RRSPs, the interest expense is generally tax-deductible and produces the same tax savings as an RRSP contribution.

"Due partially to the recent tax changes, in many cases, the responsible use of leverage will produce more after-tax retirement income than RRSPs," explains Stevens.

In his new booklet, Stevens suggests that the best approach is to use conservative leverage as a complement to RRSPs, using a combination plan approach.

By using the refund from RRSPs to finance a small leveraged investment, you diversify by strategy and increase your commitment to your retirement goal. In addition, you get a second-generation tax refund from the leveraging strategy, which can be spent "guilt-free", acknowledging that investors have to balance the need to enjoy today and tomorrow.

With the use of margin accounts at record levels, Talbot Stevens' booklet is timely for investors trying to understand when it makes sense to borrow outside of RRSPs, or to use a loan to catch-up on unused RRSP contribution room. With over 23,000 copies sold, Dispelling the Myths of Borrowing to Invest was a national bestseller before its publication date.

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Talbot Stevens is a financial educator, industry consultant, and author of "Financial Freedom Without Sacrifice" and "Dispelling the Myths of Borrowing to Invest". For other story ideas, visit the Free Resources menu of For more information, contact Judy Culford, Communications Director for Talbot Stevens, by calling (519) 663-2252, or emailing