Hi there. Sincere apologies as I KNOW this can't be a particularly novel idea, but in poking around I couldn't seem to find a good related discussion. Apologies (again) if I missed it on this site somewhere.
I have lots of carried forward RRSP contribution room. We have no debts and own our home. We have an existing non-secured line of credit. The current goal is to build up RRSP as I have no company pension and thus my income - and therefore my taxes owed - will definitely be a lot lower after retirement (whenever that comes to be).
Wouldn't it make sense for me to TEMPORARILY borrow from my LOC as much as would be required and contribute said funds to an RRSP to, if possible, get back all of the taxes that I paid for the year, IF I knew that my resulting refund would be sufficient to IMMEDIATELY and COMPLETELY pay back the LOC?
Sure seems to make a lot of sense, but then I'm left wondering what I may not be understanding? Which is why I'm here asking
Thanks in advance!
I have lots of carried forward RRSP contribution room. We have no debts and own our home. We have an existing non-secured line of credit. The current goal is to build up RRSP as I have no company pension and thus my income - and therefore my taxes owed - will definitely be a lot lower after retirement (whenever that comes to be).
Wouldn't it make sense for me to TEMPORARILY borrow from my LOC as much as would be required and contribute said funds to an RRSP to, if possible, get back all of the taxes that I paid for the year, IF I knew that my resulting refund would be sufficient to IMMEDIATELY and COMPLETELY pay back the LOC?
Sure seems to make a lot of sense, but then I'm left wondering what I may not be understanding? Which is why I'm here asking
Thanks in advance!