What if you need to withdraw more money from you RRSP to go back to school? What if you wanted to supplement a maternity leave with money that is in your RRSP? Or in the case of a job loss, you might also need to pull money out of your RRSP.
In all three of these examples, your income will be lower than when you were working full time. You may have no income at all. Not only can an RRSP provide some much needed income in these situations, there could be a tax savings as well.
If you have over $50,000 you should consider the merits of a Self Directed RRSP. This threshold is not scientifically calculated; the threshold to consider a Self-Directed RRSP will depend on each individual investor’s personal situation.