Wow, only three holes left and we're still ripping up the course. If we are able to keep this pace up, this round could go in the record books for me. Granted the ricochet off of that guys head on #5 to give me a hole-in-one sure helped. This topic "RRSP's" is a definite stroke saver in the tax game.

Registered Retirement Savings Plans is the best tax break in Canada that there is. If you are paying taxes, and you are not maximizing your RRSP contributions your missing the boat. Here the truth. It doesn't matter how much make, it's how much you keep that counts. Here is a short lesson on RRSP's.

First we need to make up a scenario. Let's say you are in a 50% tax bracket and are making $60,000.00 per year. You have $10,000.00 to invest per year and are trying to decide if you should contribute to your RRSP or invest outside of it. Let's also (to be fair) assume both investments will receive a 10% interest bearing return. Without boring you with all the calculations, the difference after 30 years is approx. this:

The non RRSP investment will have grown to $697,608 The RRSP investment will have grown to $1,634,123 That's a difference of $936,515 That's almost a difference of one million dollars. Until you max. out your RRSP contributions, you have no business investing outside of your RRSP.

This is a hole everybody needs to eagle. We just can't afford not to!!!