RRSP

by astanhaus

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A registered retirement savings plan (RRSP) is what Canadians need to set up if they want a become a snowbird in retirement. Can’t wait for my then-wrinkly skin to soak up le soleil!

(click on the bold-faced vocab words:))

RRSPs are so cool! My contributions reduce my taxable income. Yah, more $$ pour moi!

Plus, the $$ grows without the government taking a cut. Only upon withdrawal does the government get any of my $$.

Just like 401(k)s, unfortunately Porsche’s don’t count as an investment vehicle. Instead, I can fill my RRSP with stocksbondsGICs, shares of mutual funds.

RRSPs are available at banks. Single ladies, prepare yourself to check the “individual” box on the sign-up form. As usual, there are perks for those coupled up. And for those who like to be in control, there is a self-directed plan.

I’m planning to open a self-directed plan. No one else decides my ensembles, so why would I have someone else pick my investments?

I have a few more books to go before I take on the responsibility. My fave read so far has been The Wealthy Barber by Dave Chilton.

(Originally published on Amanda Stanhaus’s financial literacy blog: XO, Bettie.)

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