An RRSP Alternative
Which makes more sense?... What are most
Canadians doing?...
RRSP     LIP
                per month
    per month     carries an interest only
    X12       Both
        Produce a   Investment Loan
                     
  @ Net Return   Tax   @ Net Return
  = Gain     Reduction   = Gain
Net           Net
                       
        Upon      
    Tax or <------> Withdrawal <-----> Tax or  
             
    Net     Difference     Net  
                       
  Based 0n:                  
    CLIP account 100% Capital Gains @ 50% Inclusion Tax Rate    
  Prime Rate @                
    MTR @                
                       
  RRSP = Registered Retirement Savings Plan LIP = Leveraged Investment Plan
  MPORTANT NOTICE: Borrowing to invest is suitable only for investors with higher risk tolerance. You should be fully aware of the risks and benefits associated with investment loans since losses as well as gains may be magnified. Preferred candidates are those willing to invest for the long term, not averse to increased risk and financially able to meet their loan and income tax obligations.The value of your investment will vary and is not guaranteed. However, you must meet your loan and income tax obligations and repay your loan in full. The value of your investment will vary and is not guaranteed. However, you must meet your loan and income tax obligations and repay your loan in full. Please read the terms of the loan agreement and the investment details for important information.
          Copyright © 2002 - 2006 Martin DeArtola,CFP  

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