RESP (Registered Education Savings Plan)

Definition: Tax‑advantaged savings for a child’s post‑secondary education.

Features: Government grants (CESG) and tax‑sheltered growth.

Best for: Parents or guardians saving for education costs.

Home Buyers’ Plan (HBP)

Definition: Federal program allowing first‑time buyers to use RRSP funds for a down payment.

How it works: Withdraw up to $35,000 tax‑free per person; couples up to $70,000.

Repayment: Must repay into RRSP over 15 years; missed payments become taxable income.

Best for: Young or first‑time buyers using RRSP savings to enter the housing market sooner.

RRIF (Registered Retirement Income Fund)

Definition: Converts RRSP savings into retirement income.

Features: Mandatory annual withdrawals; growth remains tax‑sheltered until withdrawn.

Best for: Retirees drawing steady income from RRSP savings.

Annuities

Definition: Insurance contracts that provide guaranteed income for life or a set period.

Features: Lump‑sum investment converted into regular payments.

Best for: Retirees seeking predictable, lifelong income.

GICs (Guaranteed Investment Certificates)

Definition: Low‑risk deposits with banks or credit unions.

How they work: You invest a fixed amount for a set term (e.g., 1–5 years).

Returns: Guaranteed interest, usually higher than a savings account.

Best for: Safety‑focused investors who want predictable returns.

Mutual Funds

Definition: Pooled investments managed by professionals.

How they work: Investors buy units; funds invest in stocks, bonds, or other assets.

Returns: Vary with market performance; diversification reduces risk.

Best for: Investors seeking growth with professional management.

Segregated Funds

Definition: Insurance‑based investment funds offered by life insurers.

Features: Similar to mutual funds but with guarantees.

Best for: Investors wanting growth potential plus protection and estate planning benefits.