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| Manulife Bank RRSP Loans
The best time to start contributing is now Even if you've missed making your Registered Retirement Savings Plan (RRSP) contribution in previous years, there's no time like the present to start saving for retirement. Don't let a lack of cash keep you from taking advantage of this powerful financial tool this year. A RRSP loan can help you realize tax savings, increase the eventual size of your RRSP, and help you stick to your savings plan. Start with the right tools A RRSP is one of the best tools you have for ensuring a comfortable retirement. With a Manulife Bank RRSP Loan you can:
To top Real value for your RRSP dollar Manulife Bank's RRSP Loan program provides real value to investors like you by offering:
Two RRSP strategies One of the key benefits to contributing to a RRSP is that it immediately reduces the amount of income tax you need to pay. If you don't have the cash to make a contribution, a RRSP Loan is an excellent alternative. Here's an example: Amy and Karl have both neglected their RRSP in the past and each has $10,000 in unused contribution room. Both have resolved to be more dedicated in the future. As the RRSP deadline approaches, Amy takes out a $10,000 RRSP loan at 6% and invests it immediately. Her contribution results in a $4,000 tax refund (40% tax bracket) which she immediately uses to pay down her RRSP loan. Over the next 12 months, she repays the remaining $6,000 plus interest, or approximately $516 per month. Karl decides to make regular RRSP contributions starting after the RRSP deadline. He makes contributions of $516 per month over the next 12 months. Both earn an 8% annual return on their investment. How do they fare after one year? Short-term gain Amy's $10,000 has grown to $10,800 and the required loan payments ensured that she didn't stray from her RRSP savings plan. Although Karl was tempted on several occasions to spend his cash before his monthly contribution, he was able to stick to his RRSP contribution plan and contributed a total of $6,192, which grew to $6,613 by the end of the year.  Long-term gain After one year, Amy has saved over $4,000 more than Karl. What does this mean in the long term? With an 8% annual return, if both retire in 20 years, Amy's $10,800 will have grown to $50,338, while Karl's $6,613 will have grown to only $30,823, for a difference of more than $19,000! Make your RRSP a priority this year with an RRSP loan from Manulife Bank. To top Getting started To find out more about Manulife Bank's RRSP loans, which can be used to purchase Manulife Bank's GICs, Registered Advantage Account, Manulife Investments' GICs, mutual funds or segregated funds and Manulife Securities' mutual funds:
*Manulife Bank RRSP loans are only available through financial advisors Borrowing to invest in an RRSP may not be appropriate for everyone. You will need the financial means to meet your loan obligations. In addition, investments held in an RRSP may fluctuate in value. You should be aware that regardless of the performance or value of any investments held in your RRSP, you will be required to meet your loan obligations in full. Talk to your financial advisor to find out more about the advantages and obligations of borrowing to invest. Manulife Bank of Canada solely acts in the capacity of lender and loan administrator and does not provide investment advice of any nature to individuals or advisors. To top |
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