Thursday, January 19, 2006

25% of Canadians Raid Their Registered Retirement Savings Plans for Quick Cash

A recent survey conducted by Scotiabank shows that almost 25% of Canadians are using their RRSP savings to meet everyday expenses or significant expenses like homes or education.

The Howared Kabot, national director of financial planning for Scotiavank is quick to point out that "Taking money out of an RRSP should always be a last resort as the funds will eventually be taxed at the investor's highest marginal rate."

If you find yourself looking at your RRSP to meet day-to-day commitments, consider restructuring your RRSP contributions so that you have the cashflow on hand to meet your expenses rather than facing an increased tax bill due to early withdrawls.
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