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Registered Savings Plans

YOUR DOLLARS COMPOUNDED

ANNUAL RSP INVESTING

Possibly the most important investment advice anyone can give regarding your annual RSP contribution is to ensure that the underlying iinvestment is sound, and is consistent with your long term objectives.

Income earned in a Mortgage Investment Corporation is exempt from income taxes on the company, as long as 100% of the net income is distributed by way of dividends, either in cash or shares. This means that 100% of the income earned by the company flows through to the investors as return on their investments. These returns are taxable as interest income, in the year they are earned and distributed, whether by dividend or in cash. Inside an RSP or other registered plan, these dividends are sheltered from tax until the funds are taken out for use by the RSP owner.

This means that an investor in Trillium-Accessible Investment Fund (MIC) Inc. is able to earn compound returns on 100% of their share of net income of the company, sheltered from tax internally in the company as MIC, and externally inside the RSP. Because of this double sheltering from taxes, returns in the MIC are substantially higher due to compounding on the portion of interest income that would normal be paid out as income tax.

Due to the flow through tax relief and RSP tax relief capital appreciation compounds enormously.

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Disclaimer - This is an information portal providing information for qualified investors and mortgage borrowers in British Columbia and is not a mortgage broker in any jurisdiction in Canada. Nothing in this web site should be considered an offer for sale of securities or mortgages, as securites are sold only through an Offering Memorandum, and mortgages are placed only through a qualified mortgage broker. All mortgages placed in reference to this mortgage information web site are brokered through a BC Financial Commission registed subbroker registered with Trillium-Accessible Mortgage Corp. All mortgage loans granted by Trillium-Accessible Investment Fund (MIC) Inc. are made under the brokers license to the company under the Financial Services Commission of British Columbia.