Selling investments to fund your RRSP — worth it?

Selling investments to fund your RRSP — worth it? 1. Here’s the core trade-off: selling non-registered investments triggers a capital gain, but in 2026 only 50% of that gain gets added to your income — the proposed 66.67% inclusion rate was officially cancelled by the federal government in March 2025, so that scary tax hike is gone. → 50% 2. The real math: in one example, a Canadian pays $2,400 in capital gains tax but gets a $16,000 RRSP refund — that’s a $13,600 net benefit on day one before your money even starts growing. → $13,600 3. That RRSP money doesn’t just sit there — the same example grows to $217,096 after 25 years of tax-free compounding, which is why a long time horizon of 15 or more years is what makes this strategy actually powerful. → $217,096 4. Critical mistake to avoid: you cannot transfer investments directly into your RRSP — the CRA treats it as a deemed disposition regardless, so always run your break-even calculation first, especially if your gains are already above 50% of your original investment. → 2026 Full step-by-step guide linked 🌐 getwealthy.blog #CanadaFinance #PersonalFinance #CanadianMoney #MoneyTips #Canada