Maximum Contribution = Maximum Benefit
Do you have contribution room in your RRSP?
Maximizing your annual RRSP contribution means sizeable tax savings in the short term and a healthy nest egg in the long term.
Sometimes it can be tough to come up with the money—especially if you missed making full contributions in previous years.
That’s where Lakeland Credit Union RRSP loans come in. With industry leading rates for both variable and fixed, payment deferral up to 45 days, we can help you make the most of your money.
For example, if Jack borrows $5,000 from LCU to contribute to his RRSP:
|
He saves the 22% federal tax on this $5,000 |
$1,100 |
|
He saves the 10% Alberta provincial tax on this $5,000 |
$500 |
|
He puts the $5,000 in a 3 year non-redeemable term deposit at 2.08% |
$318.53 |
|
He pays LCU 3% interest |
-$81.62 |
|
His total return is |
$1,836.91 |
*The above is based on an annual income of $87,000 and is for illustrative
purposes only and does not constitute an offer.
Rates are subject to change at any time and without notice.
You can apply by calling Bonnyville or Cold Lake branch for an appointment.
Whether it’s used to pay for car repairs, a holiday, or home renovations, a line of credit is a valuable financial tool. While slightly different than traditional borrowing methods, a line of credit is a loan and still carries financial risk. Problems can occur when the line of credit debt remains but your income is reduced or lost, so the need exists to protect those around you from the financial stress of your debt.
With life insurance on your line of credit, you remove the financial burden of future payments from your spouse or family. Rather than money leaving your family each month to meet your line of credit payment, your family has extra funds available to meet more important needs.
Ask your credit union lender for details on the life insurance product available for lines of credit.
No one, including you, knows the odds of suffering an injury or illness that keeps you from working.
With this uncertainty, you should be mindful about how loan debts increase your monthly expenses and financial risk. If you should become temporarily or permanently disabled and unable to work, you may lose part or all of your income.
A big reason why you received the loan was because your income indicated you could repay the debt. While disability could take away your income, it doesn’t stop your loan payments. Meeting the loan payments with less income could cause you financial stress. You might have savings to fall back on, but years of savings could be lost when your income is cut short by a few months of disability.
With disability insurance on your loan, you can replace part of your lost income and reduce your financial stress. Usually, the insurer makes the loan payment on your behalf. The amount of the payment and the length of time the insurer will make the payments can vary. Ask your loans officer for details on the policy in place at Lakeland Credit Union.