RE:RE:RE:RE:RE:RE:Take profit? Or hold..RRSP is just a tax deferral program. In theory you are at a higher tax bracket when you are working so it makes sense to use it. It’s also an insurance policy if by chance you lose your job and are not working for a year or two. You can dip into it.
On the downside
If tax rates keep going up then are you really saving taxes?
When you retire and your income is just as high as or higher then it’s a bad idea.
So in these two situations, there is no tax benefit but you can’t predict the future.
You get no tax break for dividends or 50% break on capital gain inside an RRSP. When you go to withdraw it. The tax man holds back 10% for under $5K and 20% over $5K. It adds directly to your income with no tax breaks. It just like interest on your money. At the end of the day. The government wants money so pay now or pay later.
That’s why I call it a tax deferral.