RRSP Withdrawl (Laurie)

Hi Brooke,

I recently left my $130K job to work with my husband full-time and we are setting “impossible” goals together!

We own a natural health brokerage company in British Columbia representing skin care and pain relief brands who are looking to expand into the drug and grocery channel in Western Canada.

You’ve coached me a few times as we have been developing the “expansion” plan and we are really confident with the business plan and strategy we have developed.

The business is 5 years old and growing steadily, however, my income provided the family cashflow. We are now at the point where we need to subsidize our cashflow that my income provided.

Although we have impeccable credit rating and a net worth of $1.2M the banks don’t want to lend to us (no steady income). And we were just notify today that our plan B (Small Business Bank) says we don’t qualify (have asked for clarification).

The next two options are – private consolidated mortgage (interest is high) or cash in RRSPs. Our financial advisor thinks we are NUTS for considering cashing in RRSPs but I recall a podcast of yours that really resonated (with both of us) about “investing in ourselves”.

We have done a very thorough cashflow/budget and with the share holders loan repayments we would be looking at withdrawing $100K to see the business and family through to 2019.

I know it is not fair to ask for financial advise – I guess I am just asking if there are other options I haven’t thought of? My thought keeps running to what it knows – “go get a job” – but we both believe TOO much in this to give up now.

Thank you for any thoughts you can provide.

Laurie Shopland