text: The advice that Vi and Victor have received from their broker is unconscionable.  First, interest on borrowed money is NOT tax-deductible when the money is invested in a registered account (i.e. RRSP and TFSA).  If they've been deducting this money and Revenue Canada catches them they will face a huge tax bill.  It's unbelievable their broker (or fund salesman) recommended this.
  
  Second, I'm going to assume their broker recommended this so they could get over a $500,000 minimum investment threshold.  He's probably charging 1% for his "expert" advice.  The all-equity mutual fund is also likely charging at least 2%.  With $576K and a 15 year time-horizon to retirement and assuming a 7% average annual return in the market they will have just over $1 million.  If they didn't pay these fees they'd have $1.6 million.  That's not a typo. See: http://buyupside.com/calculators/feesdec07.htm 
  
  The same holds for their RESP.  $72K, 7% return, 7 year horizon = $116K without fees, $93K with fees.