Your All-in-One Canadian Financial Dictionary
Redeemable investment
An investment you can cash out before the end of its term, sometimes with conditions or fees.
Registered Education Savings Plan (RESP)
A tax-advantaged account to save for a child’s education. Your money grows tax-free, and the government may add grants to boost your savings.
Registered Retirement Income Fund (RRIF)
An account you switch to in retirement to withdraw income from your savings. You must take out a minimum amount each year, and withdrawals are taxed.
Registered Retirement Savings Plan (RRSP)
A retirement savings account that can help lower your taxes while you save for the future. Your money can grow over time without being taxed right away, and you usually pay taxes when you withdraw it later.
Residual value
What something is worth at the end of a loan or lease. It helps determine your payments and what the item might be worth later.
Retirement
The stage of life when you stop working full-time and live off savings, pensions, or investments. In Canada, many people aim for age 65 but it depends on your personal plan.
Rewards points
Points you earn when you spend with certain credit cards. You can use them for things like travel, cash back, or paying down your balance.