How can you Reinvest Your Tax Refund from Your RRSP Investments?

Added: 2026-05-22

[00:00:02]Next question.

[00:00:04]How many dollars you are in reinvesting of your tax refund from your RSP investments?

[00:00:11]How many dollars you are reinvesting of your tax refund from your RSP investment? Even in states it's called 401K. Let's say you put your employee you want to save some taxes.

[00:00:25]You bought 10,000 20,000 dollars in RSP account.

[00:00:28]What's going to happen? Would you get some according to your tax marginal tax rate would you save some taxes?

[00:00:34]Yes or no?

[00:00:36]And what do people do with this tax refund?

[00:00:41]Consume it.

[00:00:43]Right?

[00:00:44]But if you use that money whatever refund you are getting it invest it somewhere in tax free saving account. I'll take take that same you invest in RSP get a refund invest in tax free saving account.

[00:00:56]What's happening?

[00:00:58]Your two accounts are growing now.

[00:01:01]Instead of one account two accounts are growing now.

[00:01:06]Take the example let's say you have 10,000 dollars you invest you are 30% bracket. So how much refund you are going to should should you get?

[00:01:14]3,000 dollars, right?

[00:01:17]So you invest 10,000 dollars 10,000 sitting in your now growing in your RSP account 3,000 is growing in your tax free saving account. So 13,000 dollars is growing for you.

[00:01:28]Not bad?

[00:01:29]So please don't consume that money but reinvest that money.

[00:01:37]And why that is important that's another question comes from this one.

[00:01:41]Why we should reinvest that refund?

[00:01:46]Why we should reinvest that refund?

[00:01:48]To pay the future taxes.

[00:01:51]That we going to pay in RSP account when we are withdrawing that.

[00:01:56]That's one part. Like this I'll take I'll again take same calculator use that money.

[00:02:03]Let's say you are starting I'll take your example.

[00:02:07]Let's say we are investing every year $10,000 into your RSP account, right?

[00:02:15]And Poonam, I saw your 40 years for your retirement.

[00:02:22]Um because you are younger than less than 30 so I'm using that amount in years. What kind of rate of return should we expect?

[00:02:30]Well, let's say 8%.

[00:02:32]8%? So, $10,000 every year next 40 years at 8% how much money it will be?

[00:02:41]2.5 million?

[00:02:43]Not bad?

[00:02:45]Yes, not bad.

[00:02:47]So, but now you will start withdrawing that money. Will it be taxable?

[00:02:54]Of course.

[00:02:55]Right? And I mean you you said you need 1.5 million at your retirement so no age.

[00:03:00]That's this is money or not?

[00:03:03]And now on let's say you're same 30% bracket it means you will get $3,000 as a refund.

[00:03:13]Right?

[00:03:14]Yeah. On 10,000 3,000 refund same 40 year period same 8% return Okay.

[00:03:22]Okay.

[00:03:26]You're still getting that money? Mhm.

[00:03:30]Sorry.

[00:03:31]It was 777.

[00:03:34]So, your two accounts one is around $2.6 million one is one is around 770.

[00:03:43]How much money came from from your bank account went out?

[00:03:48]10,000 times 40 $400,000 only?

[00:03:52]Yeah.

[00:03:53]From 400,000 you have 2.2.4 2.590.

[00:03:57]Plus 7777.

[00:03:59]Not bad?

[00:04:05]So, now if you want to draw that money anyway from here, so but if you can pay taxes from this account also or no?

[00:04:14]Just imagine if you use this money like go for some vacation or something like that, so how much you're losing?

[00:04:30]That's investment. What is reinvesting of tax refund?

[00:04:35]Please don't use that money for your day-to-day checking account or vacation or anything like that. How much money you're reinvesting?

[00:04:46]Doing this one only?

[00:04:49]But if you do this one, what what what is it going to happen?

[00:04:53]Are you going good service to your clients or no?

[00:04:59]And if you show what that 3,000 dollars can do in that time frame.

[00:05:08]They won't sit with you again.

[00:05:10]For any financial decision, will they sit with you or or no?

[00:05:14]Yes.

[00:05:15]If you can show them the value to what services you provide, how that values can help them out to that what you do.

[00:05:26]Questions?

[00:05:30]Yes, Amit.

[00:05:31]Any question on that regards?

[00:05:34]No, that's powerful strategy.

[00:05:36]Yeah.

[00:05:37]So, Dr. Kalra.

[00:05:43]I'm here.

[00:05:44]Any questions? No, no questions.

[00:05:48]So, understand okay, why we are asking these questions is so that you can get an appointment and what kind of value you can bring in that appointment.

[00:06:00]Right?

[00:06:02]Sell the problem, people would want to know the solution anyway.

[00:06:11]Should we move on?