What Is An RRSP – Part 2 – Advantages of an RRSP

The following is an Excerpt from my first book Invest Now. Invest Now is jam-packed with timely information and timeless advice for the beginning Canadian investor. Invest Now covers a broad range of topics including RRSP. Invest Now is available online and will hit bookstores shortly.

Click here to read What Is An RRSP – Part 1

Advantages of an RRSP

• Deposits generate tax receipts to provide tax breaks.

• If the account generates income, no taxes have to be paid, because income is sheltered.

• If you sell your holdings and achieve profits, you pay no taxes on capital gains, but you pay withholding taxes on withdrawals.

• You pay no taxes on growth and switches made inside your account, as long as you are not going outside the registered plan

To Be Continued