Helping You Achieve Your Retirement Funding Goals.
Registered Retirement Savings Plans (RRSP)
An Registered Retirement Savings Plan or RRSP is a tax advantaged investment vehicle designed by the government to incentivize you to save for your retirement. There are two main tax advantages to an RRSP.
- Contributions made into your RRSP can be deducted against your earned income (thereby reducing your tax liability in that year.)
- Investments inside your RRSP account are sheltered from taxation until you withdrawal them (years of tax-deferred growth potential.)
Generally the funds invested in an RRSP are designated for retirement purposes. However, there are 2 programs in particular that allow an individual to make a tax free withdrawal from their RRSP:
- HBP-Home Buyers Plan (make withdrawal from RRSP to provide a down payment on a first home)
- LLP-Life Long Learning Plan (make withdrawals from RRSP to pay for an eligible education program)
It is important to note that both of these programs require the withdrawn amount to be repaid at some point in the future. Click on the link above to learn more about the particulars of each program.
Consider:
1) Find out the amount of Income your RRSP savings will provide in retirement
2) Do your RRSP holdings accurately reflect your investment goals
3) Start Saving for your retirement today by setting up an RRSP account.
