What Investments Are Allowed?
For the average person, most investments can be held in an RRSP. However, the government doesn't let every investment sit under the tax-sheltered, tax-deferred umbrella of an RRSP.
The following are eligible for your RRSP account:
|Stocks||Debt Obligations (Bonds)||Unit Trusts
|Rights, Warrants, Options||Investment Grade Gold & Silver Bullion
|Funds of Stocks (i.e. mutual funds)||Mortgages||Royalty Units||Depository Receipts||Investment Grade Gold & Silver Coins|
|Shares of Small Business Corporations||Installment Receipts||Partnership Units||Annuity Contracts|
What Investments Are Not Allowed?
Although RRSPs allow Canadians to hold a wide variety of investments, you can't hold everything under the sun in your RRSP. Here are items that are not eligible as investments for your RRSP account:
Ineligible RRSP Investments
|Employee options to purchase stock|
|Gold, silver and other precious metals|
|Commodity futures or contracts|
|Listed personal property such as works of art & antiques|
|Gems and other precious stones|
|Bonds where the issuer is a wholly-owned subsidiary and the shares of its parent are not listed on a Canadian stock exchange|
|Mortgages on commercial properties owned by you or a family member|
|Small business investments|
|Puts and uncovered call options|
|Bonds or debentures of a company whose shares are listed only on a prescribed foreign stock exchange, even though the company\'s shares may be qualified|
|Source: Canada Revenue Agency|
Foreign Content Rule
In addition to the above, RRSP holders were previously not able to hold more than 30% foreign property in their RRSP account. However, this restrictions was eliminated for the 2006 tax year.
Financial AdvisorIncreasing your savings will provide tax benefits - and peace of mind.
TaxesTaxes are an annoying annual chore akin to going to the dentist. Luckily, however, some of us get a nice tax refund after the process. It's important to use this refund wisely though, and Canadians ...
Financial AdvisorFor Canadian RRSP accounts, washing same-day trades and using money market funds to bridge the gap over a multi-day trading period saves investors the exchange fee and will help their bottom ...
InvestingLearn more about unit investment trusts (UITs), and discover some of the most common trends in the UIT market to date in the year 2016.
InvestingObtain information and analysis of some of the top-rated and most popular mutual funds that offer investors exposure to the precious metals industry.
InvestingLearn the names of the four largest silver ETFs by asset size. Discover some basic facts about each of these ETFs and what differentiates them from one another.
InvestingDiscover the top five mutual funds that investors should consider adding to their portfolio in 2016 to gain exposure to silver equity.
TradingPhysical gold and silver holdings are taxed when sold-- here's how the cost basis is calculated, and ways you can offset taxes owed.
TaxesCanadians have a lot of advantages when it comes to family tax perks.
InvestingLearn about the iShares Silver Trust, an exchange-traded fund that invests primarily in silver and is affected by risks unique to commodities.