When Tax Sheltered Investments Reduct Wealth

摘要

Canadian taxpayers have generally been advised that using an RRSP is a highly beneficial cornerstone for financial planning. Prior to the Seniors benefit proposals this was generally true. Thsi analysis, based on the new proposals, reveals a number of surprises such as a low income earner must wait over a quarter of a century before a well intentioned investment in an RRSP provides as much wealth as a direct investment in a debt instrument. The data of thsi study clearly challenge the conventional wisdom that tax sheltered RRSP investments are universally beneficial to all Canadian taxpayers.