But even if preparing for retirement is an RRSP's ultimate purpose, it can lend a hand at every stage of life. Here are some examples that the representative can help with.


Travel or realize a dream
At 20 years of age, with your head full of thoughts of travel and other dreams you're impatient to achieve, you're reluctant to devote money to savings.

RRSPs can be the perfect compromise: by contributing to an RRSP, you'll save gradually while avoiding taxes and use your bigger tax return to make a dream come true.

Become a property owner
At 30, if you start contributing early to an RRSP, the Home Buyers' Plan allows you to use your RRSP as a down payment on a property. Don't have an RRSP or it's not enough? Don't worry! A loan can be repaid easily with the tax savings you've made. Home Buyers' Plan (HBP) allows you to use up to $20,000 of your RRSP tax-free to buy a first main residence. You have 15 years to reimburse the amount withdrawn from your RRSP at a rate of 1/15 per year.

Go back to school
If you're stuck in a go-nowhere job, why not go back to school full-time?...or university? And there's no need to stretch out your learning over five years attending night classes. The Lifelong Learning Plan allows you to withdraw an amount tax-free from your RRSP. Lifelong Learning Plan (LLP) allows you to withdraw up to a maximum of $10,000 tax-free annually from your RRSP to cover tuition fees. The limit is $20,000 spread out over a four-year period. Reimbursement begins six years after the first withdrawal.

Be there as your children grow
On the family front, you're just starting to build. You want to have a child and be there as he or she grows. By withdrawing certain amounts, you can take a temporary break from work.

Start a small business
At 40, you may want to take on new challenges. You can use your RRSP to start a small private business in Canada. Once all conditions are met, your financial institution transfers your business's shares to your RRSP. A cheque valued at the shares' rightful market value is paid to the new entrepreneur. The money withdrawn is nontaxable.

Get back on your feet after a job loss
Downsizing has become standard practice and, unfortunately, no one is protected from job loss. An RRSP can get you back on your feet. By withdrawing certain amounts, you can provide an acceptable annual income and focus your efforts on the job search.

Take time for a break
Your weeks are overloaded and your family life is showing the strain. Before illness strikes, do what your doctor tells you and take the time for a carefully planned break. Your RRSP brings you the financial security you need.

Give yourself a cushion
When business is good, you can put an extra amount into your RRSP. You'll enjoy tax-free capitalization and a cushion for future deductions.

It's time to take stock and determine how much you still have to contribute to your RRSP to have the amount you want at retirement.

Take advantage of government plans to conserve your RRSP
Ideally, you should be able to conserve your RRSP for the longest time possible, even up to age 69! To do this, you can decide, for example, to take Canada Pension Plan benefits from your 60th birthday on. By using such other sources of income as a Registered Pension Plan, you can maintain your present quality of life while limiting the use of your RRSP to small expenses on the side.

Obtain help or homecare
The time may come when you'd like to benefit from help or homecare. An RRSP, transformed into an RRIF, will provide an income while it builds capital tax-free.