WHAT IS A STRESSLESS RRSP?
The Stressless RRSP is a guaranteed investment contract only offered through Thom & Associates Financial Planners Inc.
- The Stressless RRSP takes approximately 15 minutes to complete.
- Deposits into the Stressless RRSP can come from cash, transfers from other institutions, and from a Stressless RRSP Loan.
About RRSP Loans:
- Loans are available up to $25,000
- Repayments repayable over 1 to 10 years
- Principle amount guaranteed dollar for dollar
- Accumulated growth may be guaranteed with account resets
- No penalties for early repayment
- Cost of borrowing ranges from prime to prime plus 2.5% depending on time of year and the supplier insurance company.
- Takes about 15 minutes of your time
So how does it work?
- A taxpayer with taxable income between $25,000 and $65,000 will reduce their tax by up to 31% of the RRSP contribution.
- Taxpayers with higher taxable income save more.
- Along with your tax savings you also have a retirement investment that grows over time.
How much does it cost me a month?
- Cost depends on loan amount and length of term for payback, please call 250-861-RRSP (7777) for the repayment amount.
- Repayments can be increased at any time and additional deposits will not be penalized …….. they are encouraged.
What’s the bottom line
With a estimated growth rate of 5% your $5,000 will be worth $13,266.00 in 20 years.
Though it is impossible to predict the variable interest rate for the next 5 years, we have estimated an average interest rate of 6%. At this rate your cost of borrowing over the 4 years (length of loan) would be $625.
It is recommended that you use your tax refund to pay a portion of your loan. If you were to do this your cost of borrowing reduces to about $390 and the loan is paid off in approximately a year and a half earlier.
** This illustration is provided for information purposes to facilitate your understanding of the product. The above data must not be considered as a guarantee of the future results, which could be higher or lower depending on the real returns obtained on your investments.
Questions we can help you with?
Call 250.861.RRSP (861-7777) Kelowna and area or toll free 1.866.525.RRSP (861-7777)