Tis the season... for financial planning Unsecured debt: 97.62% Hi-lo fund: 0.81 months
Howdy all! I was sent an email this morning about RRSP's so that sparked me to share some info with you all that I wrote a while ago but that I haven't posted to this blog and figured it may be useful to some of you out there. The Basics of RRSPs What is an RRSP? An RRSP is the common name a Registered Retirement Savings Plan, a program designed by the Canadian government to promote personal savings for retirement. How does an RRSP work? The basis of an RRSP is that any money that you contribute to the RRSP is not included in your taxes until it is taken out. So basically if my income is $35,000 a year but I contribute $5,000 to RRSPs when I file my taxes the government only recognizes $30,000 of what I made as taxable income. The remaining $5,000 will be taxed when I withdraw it from the plan years down the road. Further than that RRSPs also grow tax free which means any money you earn (interest, dividends) on the m...