Your Choices, Made Easy.
Investing in your RSP is a simple way to build your personal wealth – and all it takes is a phone call to PRISM Investments. We encourage you to learn more about your RSP investment options and then contact a PRISM Investment Advisor to start earning today!
Registered Retirement Savings Plan (RRSP)
A RRSP is a tax-efficient retirement savings plan regulated by the Canadian government primarily designed to help investors save for their retirement. By placing money in an RRSP account, you are saving and investing for your retirement while deferring taxes on the plan contributions and earnings. Each year, you can invest up to a set maximum amount of money in your RRSP – a number determined by your income in the year prior. The money you earn by investing your RRSP grows within the RRSP itself and the will not be taxed until you begin to withdraw funds from the plan.
Registered Education Savings Plan (RESP)
A Registered Education Savings Plan (RESP) is designed to help an interested party save for a child’s post-secondary education. The Government of Canada allows savings for education to grow tax free until the child named in the RESP enrolls post-secondary schooling. A parent, grandparent, other relative, or friend, can open a RESP for a child. The person who opens an RESP is called a subscriber and the child named in a RESP is known as a beneficiary.
Locked In Retirement Account (LIRA)
The Locked-in Retirement Account or "LIRA" is a special RRSP contract designed specifically to hold locked-in pension funds (which means the funds are not available as a cash refund) for a former plan member, former spouse or common-law partner, or surviving spouse or partner, as the case may be, and provides an alternative to leaving the funds in the pension plan.
A Locked-in Retirement Account provides an investment alternative to former employees of a company with a registered pension plan. The individuals fully vested pension benefits are transferred to a LIRA. Pension plans provide you with an income once you have retired. The monies you transfer out of a pension plan upon employment termination must still be used to provide for a retirement income. Even though you have investment control of the funds, the governing legislation controls the use of the funds. Locked-in savings plans must be converted to a locked-in income plan by December 31st of the year you turn age 69.
Registered Retirement Income Fund (RRIF)
A Registered Retirement Income Fund allows funds transferred from an RRSP to remain tax-sheltered while continuing to earn tax deferred income, as long as those funds remain in your RRIF. RRIFs have become a popular alternative to annuities because plan-holders have more control over their investments and withdrawals. While you can convert your RRSP savings into a retirement income option anytime before you reach age 69, it is mandatory that you convert all your RRSPs by December 31st in the year you turn age 69.
