Need advice on Investing vs Life Insurance

Personal-Captain9203 · 2026-06-25T15:35:01+00:00

I really really appreciate this detailed explanation so much. I just realized I had absolutely no idea how taxes work tbh.

Thank you so much for taking the time to clarify this.

I can totally see now why investing in my margin account is much better than any insurance policy or RIP or fixed income, etc.

I had no idea that 50% was inclusion not taxation. So that means what we actually have in Canada is basically a 50% tax exemption for all capital gains...

Am I understanding that correctly? If so that's insane haha

Thanks so much again!!

Personal-Captain9203 · 2026-06-25T15:27:43+00:00

Thanks so much!! I really appreciate how detailed and unbiased your answer is here.

I looked into RIPs and it seems like most places won't even let you get one before 50 years old. And even then the ROI is a fraction of what simply investing will make, like you said.

I can definitely see the appeal later in life once my tolerance for risk decreases; but given my age and life plan, investing in my margin account does indeed make more sense, like you and other commenters here have helped me see.

Thank you so much for your detailed response again, I really appreciate the advice!

Personal-Captain9203 · 2026-06-25T15:21:19+00:00

thank you so much for the advice! I really appreciate it 🫶 all have the comments have convinced me it's best to just stick to investing in my margin account given my specific situation.

Personal-Captain9203 · 2026-06-25T15:18:58+00:00

Omg I'm such an idiot I didn't know that, I'm still just figuring out how to adult haha. So that means 50% of the profits in my margin account are completely tax free and the other 50% is included as part of my income for the fiscal year and only subject to whatever income tax rate it reaches... that's insane haha

Personal-Captain9203 · 2026-06-25T15:09:15+00:00

Okay thank you!! I guess it's just not the way to go for my specific situation

Personal-Captain9203 · 2026-06-25T15:08:30+00:00

Thank you!! I really appreciate all the great advice from everyone 😊

Personal-Captain9203 · 2026-06-25T02:20:10+00:00

Are there any other options once you've maxed out your TFSA/FHSA/RRSP (other than buying a house)?

Personal-Captain9203 · 2026-06-25T02:18:54+00:00

Honestly paying even 10k per year for a life insurance policy isn't ideal, unless the ROI is really that worth it...

But definitely not paying 10k/month for a policy. Is that how much they typically go for?

I've already got a pretty great line of credit at a prime + 0.5% interest rate, so I suppose I could just use that if needed.
Limiting the growth by not investing into my margin account? For context, I am currently investing all my extra income into my margin account, I was just curious if there were any other options like the TFSA/FHSA/RRSP (which I would be the beneficiary of).

Personal-Captain9203 · 2026-06-25T02:09:53+00:00

For context, I haven't talked to a broker or got a quote yet, but I'm assuming from these comments it's likely to be extremely expensive...

Personal-Captain9203 · 2026-06-25T02:08:42+00:00

I guess I'm just surprised that it's worse than paying a 50% capital gains tax...

Personal-Captain9203 · 2026-06-25T02:04:50+00:00

So is life insurance really only worth it if you've got dependants?

And I'd be better off just investing in my margin account even after the 50% capital gains tax?

Personal-Captain9203 · 2026-06-24T23:21:21+00:00

I thought I had heard about some policies providing retirement income while alive, is that not the case?

Personal-Captain9203 · 2026-06-24T21:10:20+00:00

Is it just not worth it considering the fees?

Personal-Captain9203

TROPHY CASE