Here in Canada, we are fortunate to have a fantastic registration program known as the RRSP, or Registered Retirement Savings Plan.
Unfortunately, lots and losta people have almost no idea what they are talking about when it comes to their retirement savings.
"Hey Eboo! I just invested in an RRSP!"
Me: "Um. No you didn't. You invested in a savings account, GIC, mutual fund, etc. and registered it."
I have understood the basics of RRSPs since I first heard about them, thanks to a swell guy named Dave F. who took the time to explain it properly to me.
When we head into that time of year when the financial institutions start flogging their RRSP products (read loans), you should have a basic understanding of how it works before you even give them the opportunity to confuse you. Because they will.
Here is a great article that my hero and financial Sham-Wow, Gail Vaz - Oxlade wrote on her blog to help explain it in the simplest of terms. Please take a minute to go read it, and tomorrow, I will post more on the RRSP and how to use it to your advantage.