Saving for retirement
A Mackenzie Investments Registered Retirement Savings Plan (RRSP) is a plan registered with the Canada Revenue Agency. The plan allows Canadians to save for retirement by benefiting from a tax deduction in the year of contribution to the plan. Taxes are deferred on any growth inside the plan until the money is withdrawn, at which point investors will likely be in retirement and in a lower marginal tax bracket.
Key benefits of an RRSP
- Breadth of investment choice
- Contributions can be deducted from current year’s taxable income to reduce taxes.
- Investments compound tax-free as long as they remain in the plan which offers the potential for faster growth than in taxable, non-registered accounts.
- Money from an RRSP can be withdrawn at any time (subject to locking-in provisions) but withdrawals are taxable and treated as ordinary income.
- RRSP savings can also be used to purchase a home under the terms of the federal Home Buyers' Plan (HBP) or to finance full-time training or education through the Lifelong Learning Plan (LLP).
Who should invest in an RRSP? Investors who want to:
- Save for retirement
- Reduce taxable income
- Accumulate savings faster without the tax burden
- Have control and flexibility of the management of underlying investments
Maximize your savings
- Mackenzie Investments offers a large selection of investment options to choose from.
- RRSP loans for the purchase of Mackenzie Investments funds at preferred rates.
- Sophisticated and broadly diversified managed assets solutions including Symmetry Portfolios.
- Pre-Authorized Chequing plans for automatic investing.
- Mackenzie One-Step Dollar Cost Averaging service for regular systematic investing.
Call your financial advisor for more information on RRSP investing with Mackenzie Investments.