News From Khatera Osman
Hello, everyone! How did your 2 months go? Was it fun? Challenging? For me, it was both!
FUN because I am already fulfilling one of my 2020 goals i.e. to create a certain amount of passive income by investing in multi-family apartment buildings. The renovation process of 3 apartments has already begun and soon the first apartment will be complete and ready to be ADVERTISED FOR RENT! Keep an eye on it because I can assure you that it will be “AMAZINGLY BEAUTIFUL.” On the other hand, it was CHALLENGING, because as we all know all investments have risks involved and raising funds just to continue this project of mine is testing my capability as an investor! We’ll talk about this more in the coming months and I will share with you how was able to overcome this. This month, I want to talk about another way to increase your wealth and that is through RRSPs or Registered Retirement Savings Plan.
RRSPs are a great way to do your financial goals such as retirement but did you know that there are so many myths about? Let’s talk about some of them:
❌Investing in RRSPs is pointless because you have to pay taxes anyway when you retire.
✅ Contributions you make to an RRSP are tax-deferred, meaning the money is only taxed when you withdraw it. For most, withdrawing from your RRSP at a later point in life means paying much LESS TAX. Also, any money put into an RRSP, up to the annual limit, reduces your taxable income for that year.
❌It is the SAME thing as a mutual fund.
✅ NO, they are different. RRSP is a tax-deferred account type while the mutual fund is a financial instrument that sits in the account. They are not mutually exclusive so you can still open an RRSP and at the same time still buy mutual funds.
❌The tax refund is the only benefit of an RRSP
✅ NO, while it is the most known benefit of an RRSP you can also make a tax-free withdrawal when you buy your first home or for when you go back to school.
Personally, I am not a big fan of investing in Mutual Funds, Stocks and Bonds. Many people don’t know that you can do much more with your RRSP funds, like investing it in 2n Mortgages 😜
In fact, there are a number of benefits to the RRSP Mortgage and below are some of them:
- Payments go directly back into your RRSP, and you keep all the interest – take advantage of the growth!
- You can use the highest allowable interest rate (which is usually higher than GIC rates and many bond rates)
- Payments back into your RRSP don’t count as contributions
I hope you got a thing or two from this article to help you decide about investing in an RRSP. If you have any questions, just give me a call at 905 447 0366 and I will be glad to assist you
Till the next newsletter!
The Bottom Line
About Khatera Osman:
Khatera Osman is a real estate investor. She’s been actively involved in Ontario real estate investing for a number of years. Her mission is to provide quality housing for quality tenants, while at the same time providing an above-average return on investment (R.O.I) for our investor partners and ourselves. It is truly a win-win-win way of investing!
Khatera offers its investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without a hassle of being a landlord, please contact Khatera.
For more information about Khatera and her investment program, please call (905) 447-0366 or visit https://brilliantmove.ca/