Registered Plans
A Registered Retirement
Savings Plan is a government approved plan through which you save
money for your retirement years. You are investing money when you can
afford it – during tour peak earning years – to build up a comfortable
retirement fund. Your contributions, within limits, are tax
deductible, and the income earned is tax sheltered. You can have any
number of plans. The first stage of an RRSP is to accumulate
retirement savings.
The next stage is to
provide retirement income. Your accumulated savings may be invested in
a variety of options to provide a Retirement Income (RIO) that can
continue for life or to age 90. Only the retirement income payments
are taxed each year as you receive them, thus spreading the taxation
of your accumulated savings over your retirement years.
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