Q&A: RRSP losses
Question: Can one lose the principal amount contributed into an RRSP? Everyone is saying how much they are losing – am I right in assuming they are referring to the income the plan should or has made? – Audrey U.
Gordon Pape answers: You can certainly lose money in an RRSP – not just investment earnings but the funds you have contributed. Unfortunately, when that happens you cannot claim a tax loss nor can you replace the lost principal. It’s gone, period. That’s why I constantly advise people to invest their RRSP money conservatively. You should not take big risks with your retirement nest egg.
Photo ©iStockphoto.com/ YinYang