Sunday, May 15, 2011

Thing #4 - Start my RRSP

On Friday, I met with a gentleman at my bank. He spent about an hour with me, walking me through all my options, and then I opened one with a nice little amount of money. It was one of the easiest things on my list; I only wish I had the sense to do it sooner.

Done. :)


  1. i had to google rrsp hahaha! thank you wiki!

    so it's similar to the US's 401k/roth/blahdiblah? do you have an option to set up RRSP directly through your employer?

  2. lol, sorry, I should have figured! Um... I think it's similar to a 401k. Basically, you have the bank set aside the money, and they get to invest it for you in different ways, depending on the kind of RRSP you get. Aside from setting your cash aside and letting it work for you, one of the really great things about it is, any money that you put in your RRSP is ineligible for income taxes that year.

    Most employers will set up something a bit different, more like a straight pension that gets deducted from your paycheque automatically if you sign up for it. Some very nice companies will do something like deduct 3% from each paycheque and then MATCH IT with their own money, so if you make $1000 on a paycheque, $30 is taken from you for your pension, but they put another $30 in, meaning you're actually getting $60 (I hope my math is right, it's kinda late and I'm a little tired.).

    How was that? Clear as mud? Good.