Personal Finance

should I take out my rrsp for school?

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  • May 25th, 2011 1:33 pm
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Deal Addict
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Jan 25, 2007
2165 posts
29 upvotes
Mississauga

should I take out my rrsp for school?

Pros? Cons? Thoughts?
3 replies
Newbie
Aug 31, 2010
64 posts
6 upvotes
If you have ultra safe investments...probably worth it... if you are getting less than 4% return...then for sure you want to take it out.

However...if you say...for example...bought stocks when it was cheap...for example cdn banks during the recession and you are getting good return on them...probably keep it..especially anything over 7%...bc dividends will grow over time...and consider osap or something...

To summarize...if you rrsp is just sitting there and not doing much...then good idea to use it....if you have it invested in stocks...say really good stocks...you may want to keep it...never lose money in the market

Personal opinion
Deal Guru
May 29, 2006
10930 posts
3663 upvotes
I doubt they could get a OSAP loan if they have RRSP's, they have to show they have a lack of assets when applying, and rrsp's would be an asset.
Deal Addict
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Aug 30, 2007
2464 posts
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rocking23nf wrote: I doubt they could get a OSAP loan if they have RRSP's, they have to show they have a lack of assets when applying, and rrsp's would be an asset.

Actually, for every year you have been out of high school, you are granted $2,000 that you can have in your RRSP without penalty. For example, if you've been out of high school for three years, you can have up to $6,000 in your RRSP without affecting your OSAP.

I have no idea how it works when you withdraw your RRSP to pay for school though -- is it counted as available funding that will reduce OSAP?

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