7.2 RRSPs

What is the purpose of an RRSP?

• To buy a house
• To pay off student loans
• To start a business
• To save for retirement

What does RRSP stand for?

• Rapid Retirement Savings Program
• Registered Retirement Savings Plan
• Realistic Retirement Security Plan
• Recurring Retirement Savings Protocol

True or False?

An RRSP can be a collection of different investments, like GICs, bonds, mutual funds, and stocks.

• True

• False

Select all benefits of investing with an RRSP.

• Helps save for retirement

• Reduces tax

• Can access money at any time

• Guaranteed investment

• Higher interest rate than stocks

What is a con of investing using an RRSP?

• Penalty for withdrawal before retirement

• No potential for growth
• Limited investment options
• No tax benefits

What do you have to watch out for when investing using an RRSP?

• Penalty caused by over-contributing

• Penalty caused by under-contributing

• Too much investment interest

• Not enough investment interest