SERIES: FREQUENTLY ASKED QUESTIONS #2

What is an RSP?

We love what we do, and we love to
make the complicated easy to understand
I get A LOT of questions regarding types of investment plans. People will come in to see us for the first time, we will be chatting about things like their investment experience and investments they currently own and inevitably this is how it goes:

They'll say:
"I have a RRSP" and I'll say so what is it invested in and 95% of the time they will say: "I don't know it's a RRSP"

Here's the thing ... a RRSP is just an investment vehicle, a type of account.

Here's how I like to describe it:
I like to say it's just a box. Picture types of plans as boxes. You can have a RRSP (Registered Retirement Savings Plan) box, a REP (Registered Education Savings Plan) box, a TPSA (Tax Free Savings Account) box etc. Any type of investment can go into any of these boxes. Let's take a RRSP as our example:

A RRSP is a box that almost any type of investment can go into. You put your money in that box and you get a tax break. That box gets tucked under your bed and you take it out at retirement. Anything you take out of the box is taxed in the year you take it out ... Pretty simple right?

IT'S JUST A BOX! 📦

As always let us know if you have any questions or if you want to learn more
- Jodi