HBP: home buyer’s plan
This is another “bonus” for RRSP’s. I think I would definitely take advantage of it, if you have that much money saved up in your RRSP’s.
RRSP’s: aka Registered Retirement Savings Plans:
Okay, what are they? To clarify, they are not mutual funds, but they can HOLD mutual funds. They are akin to the States’ 401 K.
Think of it as a grocery basket. Mutual funds, GIC’s (guaranteed income certificates), stocks, bonds all go into this grocery basket.
A non-registered account is like another grocery basket that holds the same items, BUT the downside is that any income you make on it is fully taxed.
I know I know, you’re thinking “hey but I’m only 24, why the heck do I need to think about retirement?? You may not be thinking about retirement now, per se, but you can start thinking about buying a home (Home Buyer’s Plan) OR going back to school (Lifelong learning Plan) in which case you can withdraw $25,000 from your RRSP for FREE- as long as you pay it back within 15 years (we’ll talk more about this later– stay tuned).
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