RRSP 101

An RRSP, or Registered Retirement Savings Plan, is a Canadian retirement savings account designed to help you build wealth while enjoying tax advantages. You can put investments such as mutual funds, ETFs, stocks, bonds, and GICs inside an RRSP, and the money can grow tax-deferred while it stays in the account.

That means you do not pay tax on the growth each year, which can help your savings compound faster over time. Contributions may also reduce your taxable income, and withdrawals are generally taxed when you take the money out in retirement.

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