A registered retirement savings plan (RRSP) has several advantages. For investors under 72, it can allow tax-deferred, compound interest and help accumulate savings to achieve long-term retirement goals. It also allows for a variety of choice of specific investment options. For families with children, a registered education savings plan (RESP) can help finance post-secondary education.
Some of the advantages of RRSPs and RESPs include:
- Tax-deductible RRSP contributions
- Tax deferral of compounding income and growth
- Based on a family’s net income and the amount contributed, a government RESP grant is available
- When money is withdrawn from an RESP, the student typically pays little tax, due to a low income tax rate
Working together, we can examine RRSP and RESP investment options in order to build a customized portfolio that takes into consideration your financial security goals, tolerance to risk and timeline. Contact us today to find out more.