RRSP (RETIREMENT PLAN)

RRSP or Registered retirement savings plan offers an ideal way to save some amount for the future. This plan offers future security by allowing an individual to save consistent amounts for a long time. Not only you, but your spouse can also contribute to this investment plan. Anyone who is planning to invest in the RRSP plan can attain the following benefits throughout life.
• A contribution to the RRSP investment plan early can help get immediate tax benefits when you are at a point of getting the highest income.
• Another benefit is that the contributions you made in your RRSP are tax-deductible.
• Once you get to retire from your job, your RRSP is converted to RRIF i.e. Registered Retirement Income Fund. It is designed to provide individuals with regular incomes from savings.

Individual Plan: In this, an account is open in the name of one person. And only a subscribed user can make the contributions.

Group Plan: A group RRSP is usually offered by employers to employees. Under this, both the employer and employee can contribute.

Spousal Plan: This investment plan allows the higher-earning spouse to contribute in the place of a low-earning partner.

Like RRSP, TFSA is also a method to save money but have some differentials. They both hold a variety of investments and help accomplish future needs. TFSA is a great alternative for those who likely to continue saving after age 71 and do not require regular income.

RRSPs are the best way to save for your retirement and it is never too late to plan for saving for yourself. These investment plans are easy to understand if you have a knowledgeable broker with you. Contact us today for more information.