| Registered Retirement Savings Plan - RRSP | |
 A type of Canadian investment account used to save for retirement. An RRSP can contain stocks, bonds, mutual funds, GICs, and even mortgages. RRSPs are an important planning instrument for Canadians, especially because of their tax advantages. There are two main tax benefits: 1) You can deduct contributions against your income. For example, if your tax rate is 40%, every $100 put into an RRSP will save you from paying $40 in taxes. 2) You get a tax shelter from any capital gains or income earned inside of an RRSP. This means that, over the long run, you can truly put your money to work for you through compounding. |
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 The theory behind RRSPs is that you are delaying the payment of taxes from the time when you are usually taxed higher (income earning years) to a time when you are taxed less (retirement). The hope is that this will encourage people to save for retirement. |
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 Five Tips for the Tax-Smart Investor - Being tax savvy can help you increase your returns more than you'd expect! Mutual Fund Basics Tutorial - Learn about the basics--and the pitfalls!--of investing in mutual funds. Stock Basics Tutorial - If you're new to the stock market and want the basics, this is the tutorial for you! |
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