willheim on Nostr: In Canada we have RRSP (Registered Retirement Savings Plans) kinda like 401k in the ...
In Canada we have RRSP (Registered Retirement Savings Plans) kinda like 401k in the US. Contributing to it gets you a tax break as you're effectively deferring paying taxes until you withdraw from that acct, likely when you're 65. I didn't want to pull from my TFSA (Tax Free savings account), like a Roth IRA, and the nice people in MSM, surely sponsored by the banks, promoted getting an RRSP loan. You take the loan, get charged some interest, save the taxes, pay back the loan. Easy, right?
NO! Such a scam and so stupid. They wanted to lend me at roughly 6% interest APR (no biggie but I didn't even get that far in the conversation) only to put into their products with outrageous MERs and severely underperforming funds. In essence they would lend to themselves and collect from you interest and fees while your savings evaporated at returns that are barely averaging greater than inflation. I just wanted the loan to buy some ₿ ETFs (I'm old enough to have trapped money) and reduce the tax.
I did not proceed. F the banks.
NO! Such a scam and so stupid. They wanted to lend me at roughly 6% interest APR (no biggie but I didn't even get that far in the conversation) only to put into their products with outrageous MERs and severely underperforming funds. In essence they would lend to themselves and collect from you interest and fees while your savings evaporated at returns that are barely averaging greater than inflation. I just wanted the loan to buy some ₿ ETFs (I'm old enough to have trapped money) and reduce the tax.
I did not proceed. F the banks.