Episode #7 - Two Minutes to a Better RSP: Why Do I Need an RSP?
Announcer: Welcome to The Money Clip podcast series from The Vault, Scotiabank’s online guide to helping Canadians get ahead financially. Listen in to gain a deeper understanding of your personal finances and find out how a few small changes to the way you manage your money can make a big difference.Michael Seaton: Thank you for joining us on The Money Clip podcast series from Scotiabank. I’m your host, Michael Seaton, and with The Money Clip we provide Canadians with a deeper understanding of personal finance and money-related matters. This is our series titled “Two Minutes to a Better RSP”. We hope to put you on a path to understand how to maximize your retirement savings plan as the deadline approaches. The topic for today’s first episode is why we all need an RSP. When we talk about retirement savings plans, or RSPs, let’s start with these questions: Why do we need one? Why is it important? and How do we benefit from this type of investment? The answer is actually straightforward: an RSP is an investment in your future. It’s really that simple. Canadians are living longer and spending much more time in retirement than ever before. Investing in an RSP is the best way to help ensure that you’ll have enough money to last during your retirement years. Whether you want to travel, explore a hobby or start a small business, or just live a life of greater leisure, you’ll be in a better position to follow your dreams with a nest egg securely in place. And the benefits of an RSP are hard to beat. Your contribution is tax deductible and the money you put into your plan grows tax free, allowing you to take advantage of an important factor within investing called “compound growth”. There are a variety of investment options within an RSP, including mutual funds, equities, guaranteed investment certificates, and bonds, just to name a few. And because of the magic of tax-free compound growth, where you earn interest on your investment earnings, it’s never too late to start saving in an RSP.
This has been your Two Minutes to a Better RSP podcast. Keep listening for more in this series as we take two minutes to review tips and suggestions to reach your retirement goals. Thank you for listening.
Announcer: Do you have any thoughts on today’s show? We’d love for you to get involved and become part of the conversation. Send us your questions, comments or money management tips so that we can address them in future podcasts. Our email address is themoneyclip@scotiabank.com and our call-in number is 1-866-652-5333. The Money Clip is brought to you by The Vault at Scotiabank. Be sure to tune in again next time.