LEAVE THE RRSP INTACT$0
No loan, no withdrawals — untouched compounding, taxed at the later rate on the way out.
Borrowed portfolio, after repaying the loan$0
What the melted dollars would have kept, after tax−$0
Net effect of running the strategy$0
What this tool refuses to pretend
The pitch says RRSP withdrawals come out "tax-free." The arithmetic says something sharper: the melted dollars are consumed paying loan interest — what the strategy really does is fund that interest with pre-tax money and add investment leverage. Whether that beats leaving the RRSP alone depends on the return, the borrowing cost, and the tax rate those dollars would eventually face. The unleveraged cousin lives in the drawdown calculator; the full strategy is written up here.
The meltdown is a pairing — an advisor who owns the sequencing and a broker who structures deductible-interest borrowing correctly. The desk is the second half.
Arrange a confidential introduction
Ramin Hallaji, Principal — licensed in British Columbia (BCFSA) and Alberta, Dominion Lending Centres Group · 778-879-6768 · ramin@privatewealthfinancing.ca
Illustration only — deliberately simplified, and not tax or investment advice. The model assumes the withdrawal exactly equals the loan interest and the deduction fully offsets the withdrawal's tax — which requires the direct-use rule to be satisfied and enough income to absorb the deduction, both the accountant's boxes to tick. Withholding at source is a prepayment squared up at filing. Returns are applied evenly; real portfolios don't do that, and leverage cuts both ways. Private Wealth Financing arranges the financing; an advisor and accountant own the plan.