Contact: Judy Culford

January, 2001

Phone: (519) 663-2252

5 Controversial and Often
Overlooked RRSP Story Ideas

RRSP Catch-Up Loans Benefit Investors

Yet are Often Discouraged by Advisors

Larger RRSP catch-up loans are often discouraged by independent advisors, despite the fact that they almost always benefit their clients and themselves. Not only does this investment loan strategy lead to a larger RRSP, it forces a higher level of commitment, making it an effective forced savings plan. Automatic monthly savings plans are often "temporarily" suspended.

Conservative Leverage an Effective Alternative to RRSPs

Combination RRSP-Leverage Plans Diversify by Strategy

Because the interest expense deduction produces the same tax savings as an RRSP contribution, leverage can be viewed as an alternative investment strategy to RRSPs. This is important for the many Canadians looking for additional tax-saving investment strategies beyond their RRSPs. The overlooked need to diversify by strategy is a strong argument to consider leverage as a complement to RRSPs, by using a combination RRSP and leverage plan.

How to "Gross-Up" $1,000 to a $2,000 RRSP Contribution

Right refund strategy can increase RRSP fund by 25 to 50% or more

With RRSPs, one of the most important factors affecting the size of your retirement fund is what you do with the refunds. This investor behaviour parameter is often overlooked and rarely discussed. Yet, acting on a moreeffective RRSP refund strategy can increase your retirement fund by 25% to 50% or more.

Are RRSPs Still the Best Strategy?

Recent drops in the tax on capital gains has many wondering if it might be better to keep some of their investments outside of RRSPs, especially their equity investments. New research fundamentally challenges the most popular financial planning belief - that RRSPs are always the best investment strategy. The reality is now that we only pay tax on 50% of capital gains, many baby boomers would produce more after-tax retirement income by keeping some of their investments outside of RRSPs.

Spousal RRSPs Often in Wrong Name

Since very few couples will have perfectly balanced retirement incomes, almost every couple should have a spousal RRSP. Unfortunately, this income splitting strategy is often misunderstood and used in a way that actually hurts investors.

-- END --

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