Sunday, July 17, 2005

What My Investing Accounts Mean

On the sidebar to the right, you will see all the investment accounts that I have. Below is a brief description of these accounts:

RRSP: This is my registered retirement savings plan account. For those of you in the U.S., this is like your IRA. All investment gains (dividends, capital gains, interest, etc.) are not taxed while in the plan you can deduct your contributions against your year's earnings.
I hold this account with Canadian ShareOwner Investments. Their commissions are pretty good and best of all, they do free dividend reinvestment.

Non-RRSP: This is just my regular investment account. It is fully taxable.
I also hold this account with Canadian ShareOwner Investments.

Pension: This is my pension account I get from work. Basically, I contribute 3% before tax and my employer matches it with 2%. I look at it like free money.

ESPP: An ESPP is a 'Employee Stock Purchase Plan'. This plan, also offered through my employer, allows me to contribute 5% of my salary to company stock. It works like this: Each pay period, 5% of my salary is deducted and placed into a holding account. After 6 months, the company buys stock for me at 85% of the average stock price during the 6 month contribution period. In other words, I get a 15% return right off the bat.

Wife RRSP: This is my wife's RRSP. Not a lot in here but I will eventually use it for a spousal RRSP. Currently it is held at TD Canada Trust.


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