Registered Retirement Savings Plan
RRSP is a personal savings account that provides you certain special tax advantages. There are a variety of investments that qualifies as RRSP like the mutual funds, treasury bills, guaranteed interest products, bonds and equities and segregated fund contacts.
An RRSP is considered as a power tax saving instrument as when you contribute to them they are tax deductible. Apart from that, the taxes on any investment growth are also deferred till you actually take out the money from the funds. When you get tax-deductible contribution you can have more funds in your hands for meeting your current needs while you are saving for your future. It is a way that keeps your money works out for your future.
When you take out the fund from RRSP, the amount withdrawn will be taxed at the tax rate that prevails at that moment. If you start withdrawing them after your retirement the tax rates will be much lower.
It is best to contribute to RRSP if you
- Are looking to reinvest the tax savings you have.
- You are planning to save money for your retirement.
- You want to save your tax savings for paying off your debts.
To get RRSP Plans in Kitchener, Waterloo, Cambridge, Brampton, Mississauga, Brantford, Hamilton & GTA. Call us at +1.647.244.8000
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