Contact: Judy Culford

January, 1994

Phone: (519) 663-2252

Four Interesting RRSP Story Ideas

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 The RRSP withdrawn for short-term emergency funds to cover mortgage pay­ments can make the difference between keeping the house and losing it.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)

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:

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 For more information, contact Judy Culford, Communications Director for Talbot Stevens, by calling (519) 663-2252, or emailing