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Registered plans

Registered investment plans are an advantage enjoyed by investors living in Canada. They were developed by the federal government to encourage Canadians to save for their retirement, access a reliable income stream during retirement, and fund the education of their children and grandchildren.

Registered Retirement Savings Plans (RRSPs) let you defer taxes while saving for your retirement; Registered Education Savings Plans (RESPs) let you defer tax while saving for a child’s education and provide government grants that boost your savings; in retirement, a Registered Retirement Income Fund (RRIF) lets your capital continue to grow tax-sheltered until it is withdrawn as income, when you are in a lower tax bracket; and Tax-Free Savings Account (TFSAs) help your savings compound tax-free to a maximum of $5,000 for any purpose.

With the exception of the TFSA, contributions to registered plans are deductible from your taxable income, reducing the amount of income tax you need to pay. Generally, your investments compound tax-free within registered plans, and withdrawals made are taxable — but withdrawals are usually made at a time of life when we are in a lower income bracket, so they are an effective tax minimization tool.

Ask your Macquarie Private Wealth Investment Advisor about the many advantages of including registered investment plans in your portfolio.

 


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No entity within the Macquarie Group of Companies is registered as a bank or an authorized foreign bank in Canada under the Bank Act, S.C. 1991, c. 46 and no entity within the Macquarie Group of Companies is regulated in Canada as a financial institution, bank holding company or an insurance holding company. Macquarie Bank Limited ABN 46 008 583 542 (MBL) is a company incorporated in Australia and authorized under the Banking Act 1959 (Australia) to conduct banking business in Australia. MBL is not authorized to conduct business in Canada. No entity within the Macquarie Group of Companies other than MBL is an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Australia), and their obligations do not represent deposits or other liabilities of MBL. MBL does not guarantee or otherwise provide assurance in respect of the obligations of any other Macquarie Group company. Macquarie Private Wealth Inc. is a member of Canadian Investor Protection Fund and IIROC.