A tax-sheltered investment
A Registered Retirement Savings Plan (RRSP) is a Canadian account designed to promote retirement savings by providing tax benefits. Contributions are tax-deductible, reducing taxable income. RRSPs offer tax-deferred investment growth, with taxes on gains paid upon withdrawal, typically during retirement at a lower tax rate. This financial tool plays a vital role in Canada’s retirement planning, helping individuals achieve financial stability post-retirement.
Contributing to a Registered Retirement Savings Plan (RRSP) in Canada provides individuals with a tax deduction benefit. Moreover, the income generated within the RRSP grows tax-deferred, allowing for potential growth over time. Canadians with available RRSP contribution room can contribute to their RRSP until the year-end in which the plan holder reaches the age of 71. This tax-efficient investment vehicle helps individuals save for retirement while benefiting from tax advantages.
When it comes to RRSP-eligible investment options, you’ve got a variety to choose from: fixed-income securities, equities, mutual funds, private company shares, and more. Plus, ever since the foreign content restrictions were lifted from registered savings plans in 2005, you’ve got the freedom to invest globally. Whether you’re seeking information on setting up an RRSP contribution or require a review of your current investment strategy, choose Globalex and experience coverage that goes further. To get started on your RRSP investments with Globalex, click below.
