I am going to share with you two quick ideas on how to get a ton of cash inside your RRSP without having to come up with additional money.

The first strategy is called the RRSP Gross Up Strategy, and it's where you borrow a very small amount of money equal to the refund that you're going to get, and then you pay off the loan.

We have a scenario where a client contributed $3,000 to their RRSP, and then they asked me to help them get a small RRSP loan for $2,000.

Now they have $5,000 going into their RRSP in total. The expected refund on this new contribution amount is about $2,000.

So guess what we're going to do at that two grand? We're going to pay off the little loan that we borrowed so that we can now put an additional 67% inside our RRSP without having to come up with any additional cash!

This is a strategy I've been using for years and it's super, super effective. The second strategy I want to share with you is called the Debt Swap Strategy, and it's very similar to the gross up strategy.

DEBT SWAP STRATEGY

this time, what we're doing is we're leveraging the refund to pay off existing debt. In this scenario, a different client had $30,000 in credit card debt. They're going to go borrow a $70,000 RRSP loan, and now we've got a contribution of 70 grand inside the RRSP. What would you rather have: $30,000 credit card debt or 70 grand inside your RRSP?! We structured the loan to be paid off over 10 years.

The expected refund on this RRSP contribution is going to be about $30,000. So just like the gross-up  strategy, we're going to take this refund and pay off those credit card debts. 

Borrowing isn't for everyone, and does take on additional risks, and increase the overall cost of the investment so be sure to crunch all the numbers and look at multiple scenarios.