The following ideas, extracted from Talbot Stevens' new bestselling book Financial Freedom Without Sacrifice, offer timely and interesting story angles on RRSPs.

1. The real reason to contribute to an RRSP this year.With job security a thing of the past, RRSPs can provide essential income security during periods of low or no income. The RRSP withdrawn for short-term emergency funds to cover mortgage pay­ments can make the difference between keeping the house and losing it. And the "RRSP income insurance" doesn't cost anything, because if it is never used, the funds provide security during their intended period of retirement.(p. 165, 204)

2. Creative short-term uses for RRSPs (or RRSPs: Not Just for Retirement)

• How to get a free vacation - paid for by the government, by using RRSPs to defer income from a high-tax year to one when you take a sabbatical to travel. (p. 119, 205)
• Helping finance a new business, going back to school, or starting a family, using the same short-term income deferral to a year that you plan to be in a lower tax bracket. (p. 119, 205)
• How to withdraw RRSPs tax-free, or taxed-less. Using RRSPs to defer income to a time that you have no other income (when staying home to raise a family), you can withdraw $6,500 each year tax-free. (p. 119, 205)

3. RRSP or Mortgage Paydown? Expert advice suggesting to do both doesn't make any sense. If the RRSP is better in February, then it is also the best place for the refund a few months later. After extensive analysis, most people are financially further ahead to maximize their RRSP first unless the interest rate on their debt (mortgage or other loans) is at least 3% higher than their average RRSP return. For example, if your RRSP averages 10%, then only pay down debts charging more than 13% (credit cards, but not mortgages). However, the more important reason to do the RRSP first is for the better income security, as outlined above. (p. 165, 193)

4. Finding Money for Your RRSP Contribution. Despite the endless complaining about sky-high taxes, only one in four Canadians will take advantage of one of the world's best tax shelters. With declining real incomes, the reason for most is they simply don't have any money to invest. Some ways (from p. 199) to free up money include:

• Replace whole life insurance policies with low-cost term insurance. This frees up the cash value (which can be thousands of dollars) which would be kept by the com­pany in the event of death, and can reduce premiums by 200 - 500%. (p. 184)
• Cancel life insurance policies that aren't needed. 30% of life policies are owned by single people with no dependents. (p. 183)
• Cancel and get refunds for low-value insurance like life and disability coverage on personal and auto loans, and extended warranties on autos or appliances. (p. 182)
• Refinance fixed-rate personal loans without penalty at today's lower rates. (p. 194)

I hope that you find these ideas helpful in providing your readers with valuable information during this RRSP season.

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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 www.TalbotStevens.com. For more information, contact Judy Culford, Communications Director for Talbot Stevens, by calling (519) 663-2252, or emailing judy@TalbotStevens.com.