How this RRSP Strategy can Significantly Enhance your Returns (5 Times Higher ROI)

Most Banks and Financial Planners are happy to tell you that a 5 to 7% return on your money is good. Why would you settle for that when you can do so much more without additional risk?

Some of the top Financial Planners can on average get you a 10% return on your investments, but these represent less than 1% of all Financial Planners.

In our case, my readers and clients know that we have been averaging 20% on our returns, which with my 38 years experience has helped me become one of Canada’s top Financial Consultants When It comes to returns.

Today I am going to show you how adding my favorite financial strategy, along with the higher returns, can significantly enhance the value of your RRSPs. You are not going to get this strategy from a mainstream Banker or Financial Planner.

So before we begin let’s get the obvious question out of the way: “How did I average 20% over such a long period of time?”

I used my “Connecting the Dots” strategy together with certain Demographics – the valuable combination that I personally developed over a long period of time.

I always ask my clients the following question: “Do you think that Technology will slow down?” – I have never heard anyone answer “Yes”, in fact most say that it will speed up.

So why not invest in Technology if you know this fact? Just in the last 10 years, the average rate of return for Nasdaq is 20.03%. Even the Health Care funds have averaged 16.73% in the same time period and Covid-19 is going to strengthen these funds once vaccines and related discoveries are developed.

Now lets analyze my RRSP strategy. First of all, too much RRSP holdings creates a “Tax Time Bomb”! Therefore, you need to create some Estate strategies in order to avoid giving away up to 53.55% of your RRSP to CRA. For starters, you can use RRSPs to get TAX FREE refunds and significantly enhance your returns.

The first step is to have an RRSP; the more you have the more effective this plan will become. Many of my clients have over $200,000 in RRSPs and they all want to reduce their future Tax Liability. I can show you how to utilize these funds to pay for a Collateral Loan, where only the money you borrow to invest is the collateral. This is how you start to make money with other people’s money!

As an example, to match a $200,000 RRSP we borrow additional $200,000 with an “interest only” loan of about $700 per month. We then withdraw $700 per month from the RRSP thus we use the RRSP to fund the $700 interest payment. Note that the RRSP withdrawal is 100% taxable but the interest on the loan is also 100% tax deductible – the tax is wiped out! Also, your new Collateral Loan does not affect your cash flow.

In this example, by the end of the year we would have reduced your RRSP by $8,400. Now if you were following my advice, not only did you average 20% on your existing RRSPs, you also made the same returns on borrowed money.

In comparison to a Bank, an RRSP may at best grow at 7%, which means that you would have $214,000 after one year. However, with our average returns you would have made $40,000 on your RRSP, which means that you would have $240,000. Even with these higher returns, we have not yet taken into account my RRSP strategy.

First we subtract the $8,400 from our $240,000, thus your net RRSP is worth $231,600. We then add an additional $40,000 return from the newly borrowed money, thus we have increased your investment to $271,600. This is significantly higher than the $214,000 you may receive at a Bank or with a typical Financial Planner.

About four years ago I enhanced my RRSP program by funding any new RRSPs up to your “contribution room” for the year. So we started funding our clients’ RRSPs using the profits -many times it was $10,000 or more. In the previous example, this could save the client an additional $4,000 to $5,000 per year in taxes, increasing the value of your investments up to $276,600.

That is no longer a 20% return but now adding these strategies just jumped up to 38.3%.

When you start compounding these results over a few years it adds up very quickly. Also, I recently discovered an untapped source for even more growth. What if the investor has more unused RRSPs?

In another similar example, a client who recently used his $109,000 of profit to fund his unused RRSP could maximize the Tax Deduction over the previous year and in the current year if done in the first two months of the year.- their Tax Savings could be up to $54,500.

In such a case we can add this tax saving to the $271,600 in the previous example – now your money would have grown up to $326,000. Compare that to the $214,000 you may receive at a Bank or with a typical Financial Planner.

Also, last year alone Nasdaq grew by 28.45%, not 20%. This year, after recovering from Covid-19, it has grown by 32.69%. The 32.69% is mostly due to US stimulus program that is going to stay in place for at least 18 more months.

Overall, when combining the last two years with another four months to go to the end of the year, our readers and clients that took our advice would have made 61.14%. This is only the rate of return without the strategies.

How have you done with your RRSPs?

If you are reading this article then this can become your own returns. You also do not need $200,000 to start our program. You just need to have an RRSP that you can draw from.

You have one life and you could live it to the fullest – this is my way of helping you get there!

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