Personal Finance

GRRSP vs SD-RRSP. Pros and Cons

  • Last Updated:
  • Dec 16th, 2013 10:24 pm
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Aug 28, 2007
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GRRSP vs SD-RRSP. Pros and Cons

I'm new to this RRSP thing and I've done some basic research into pros and cons on this subject, but still haven't come to a clear conclusion whether or not I should fully invest into GRRSP, have it split 50/50 with an SD-RRSP or heavily base my contribution towards my SD-RRSP.

From what I gather GRRSP's main benefits include 1) Employer's basic matching contributions (an instant salary increase) 2) Lower overall rates compared to SD-RRSPs. The cons however include 1) Inability to withdraw (some GRRPS are locked-in, mine I believe is not) 2) EI and CPP is still being deducted from the tax sheltered amoutn regardless (though this wouldn't suade me towards SD-RRSP either.

Is it worth putting the full 18%? If so, how should it be invested between GRRSP and SD-RRSP? And Why?
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