Hello, this is my first post in the forums. I have been reading some great articles for some time and now have a question regarding my situation.
My financial adviser has suggested I get a RRSP loan to top up my RRSP's and catch up as I have lots of room to contribute. Heres the details.
RRSP Loan $22000 at 5.25% for 4 years
I am at the 34% marginal tax bracket
His plan was for me to take the $7500 refund at tax time and apply it to my line of credit paying that off. My line of credit is at $5600 with a 6% interest rate. Then take the left over refund and invest it in a TFSA. Is this a smart investment?