Once upon a time the only thing you could use an RRSP for was retirement planning. Then the Home Buyer’s Plan came along, followed by the Lifelong Learning Plan. I’m surprised more people don’t use their RRSPs to increase their earning potential by improving their skill-sets. Seems like a no-brainier. Maybe it’s just that folks don’t know how.
The Lifelong Learning Plan (LLP) gives you an interest-free loan from your RRSP, or from your spouse’s RRSP, up to $10,000 a year (to a maximum of $20,000 in total, or $40,000 in total if both members of a couple are going back to school) to finance full-time training at a qualifying school. While the LLP is a great solution for those looking for a way to return to school full-time without having to worry about taking out student loans, it’s important to make sure you will be able to repay the money you took out.
A certified financial planner can help you understand this type of investment withdrawal, it’s payback schedule, how to qualify and if it’s right for you.