RRSPs
What is an RRSP?
A Registered Retirement Savings Plan (RRSP) is a government regulated investment account available to most Canadians. An RSP helps to maximize your retirement savings since the money you earn compounds tax free until it is withdrawn. Any amount contributed to an RSP is deducted from your income.
What are the benefits of an RRSP?
Tax-Sheltered
Not only do you invest money that would otherwise be paid in taxes, but the earnings of your plan are not taxed until you withdraw them.
Tax Savings
When you contribute money to your RRSP you can reduce your taxable income for that year which means you would pay less at income tax time.
Investment Possibilities
There are many different investment options in a RSP that include cash, GIC’s and mutual funds*.
RRSP Flexibility
You are able to borrow from your RRSP for some of life’s major events such as buying your first home through the Home Buyers Plan and pursing an education using the Life Long Learning Plan.
RRSP Options
Deposit Type Plans
Are the most common plans. They offer familiar savings options including savings accounts, term deposits, or guaranteed investment certificates. The rate of interest may be variable, fixed or index-linked.
Mutual Funds*
Money Market Fund - Invested in short-term securities such as treasury bills, and government and corporate notes. Income funds - Same investment as money market funds but predominately invested in longer-term bonds & mortgages. Equity - Invests primarily in stocks.
Self-Directed Plans
With this kind of plan you can make all your own investment decisions within a wide range of qualified investments.
Group (Employer Sponsored Plans)
A Group RRSP is a collection of individual RRSPs offered to employees by their sponsoring employer.
Contributing to an RRSP
Any Canadian up until age 71 who earns income or still has contribution room available may contribute to a RRSP. Even if you are not taxable, you should file a tax return to report your earned income and create RRSP contribution room.
Contributions can be made any time during the year. Contributions made in the first 60 days of any year may be deducted from income of the prior tax year, current year or future year.
Ready to get started?
To learn more about RRSP's or to discuss your options, meet with one of our
knowledgeable and friendly wealth management professionals.
Call us at 613-966-4111 or visit your local branch
*Mutual funds are offered through Credential Asset Management Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Unless otherwise stated, mutual fund securities and cash balances are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer that insures deposits in credit unions. There can be no assurances that the fund will be able to maintain its net asset value per security at a constant amount or that the full amount of your investment in the fund will be returned to you. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.
