Registered Retirement Savings Plan (RRSP) Investments

Investing in a Registered Retirement Savings Plan (RRSP) is the most common method used by Canadians to save for their retirement. The money you invest in your RRSP is used to reduce your annual income on a yearly basis. What this means for you is that you can shrink your taxes payable and depending on your employment status, even receive a cheque from the government refunding the difference between what you paid in taxes and what you are responsible to pay in taxes based on your new income status. RRSP's then provide an immediate benefit in the form of a tax deduction, but the major benefit is derived from the fact that the interest you earn on your investment grows tax deferred until you cash in or convert your RRSP to an income producing account.