The Registered Education Savings Plan (RESP) is a government registered savings plan that helps parents to save for their child's post-secondary education in Canada. Contributions are made into the plan by individuals and also via government grants. Investment returns and growth on the savings are sheltered from takes until withdrawal.In a world where tuition fees for higher education continue … [Read more...]
Get the inside scoop on RRSPs, RESPs, TFSAs, Indexing, ETFs and more. All about DIY Investing and increasing your Net Worth.
Taking control of your finances and your life includes understanding some of these financial terms and concepts you will come across now and again.1.Annual Percentage Rate (APR): Is the total amount of interest plus fees paid on an annual basis on a loan expressed as a percentage. APR is a broader measure of the costs of borrowing money and is also referred to as "Effective interest … [Read more...]
There are two main types of registered pension plans in Canada - Defined Benefit Pension Plan (DBPP) and Defined Contribution Pension Plan (DCPP).A brief definition of both plans is as follows: Defined Benefit Pension Plan In this pension plan, the employer promises to pay you a predetermined monthly income for life after retirement. The amount is calculated using different methods, but the … [Read more...]
This is the second article in the RRSP 101 series. In the first article for this series, I discussed the basics of the RRSP. Today, I will break down the group RRSP and why you should not leave money on the table.A Group RRSP is simply a collection of individual RRSP accounts managed on a group basis by an employer. Like an individual RRSP, the group RRSP offers tax-deductible contributions … [Read more...]
The Registered Retirement Savings Plan (RRSP) is a personal savings plan that is registered with the Federal Government and which allows you to save for your retirement. The RRSP was first introduced in 1957. RRSP's are popular in Canada - for the 2015 tax year, contributions to RRSP's totalled $39.2 billion, up 1.4% from 2014.There are various investment instruments (qualified investments) … [Read more...]