Q: Pat, I am thinking of employing the “RRSP meltdown strategy.” In my case, though, I’m thinking of using your newsletters to choose the stocks I purchase with borrowed funds (rather than losing fees to a broker/advisor). What are your thoughts regarding this approach to an RPSP meltdown?

A: There are times when you may want to withdraw money from an RRSP. This has spawned one strategy, the RRSP meltdown, that can bring you more risk than reward.

Here’s how the RRSP meltdown works:

When you take money out of your RRSP, you have to… Read More

RRSP meltdown strategies could jeopardize your retirement

RRSP meltdown strategies promise to ease your tax burden on withdrawals, but these complicated manouvres are usually more lucrative for brokers than for investors
Investors sometimes ask us what we think of the so-called RRSP meltdown. This is a strategy that would let them make withdrawals… Read More

Offshore investing risks can easily outweigh the rewards

Offshore investing may seem like an attractive option to lower your taxes, but you need to be aware of the risks.

There are various ways of structuring your business affairs using offshore investing companies or trusts that can cut or defer your taxes. You… Read More

I read your article on TSINetwork.com with interest. I was under the impression that an RRSP must be dismantled when you hit 70 and either you purchase an annuity or you take all your money out and it’s taxed. Are there any better alternatives? I’m 60 now, so I hope I have time enough to plan. Thanks.

When you turn 71, you have to roll over your RRSP into a RRIF. However, you don’t have to sell any of your securities at that point. Your RRSP is simply redesignated as a RRIF (you do need to fill out some paperwork to open… Read More

Approach offshore investing with caution

There are, in some cases, ways of structuring your business affairs using offshore investing companies or trusts that can cut or defer your taxes. You may also be able to protect your assets from legal judgments rendered in Canada if you move them to accounts… Read More