Market-linked guaranteed investments in an RRSP

Since investment income is taxed at maturity, why not put your market-linked guaranteed investments in your RRSP? This way, the interest will only be taxed when you withdraw from your RRSP.

As with any RRSP contribution, this can be done during the year or during the 60 days following the end of the year. It can be deducted for the year or in following years if your deduction limit allows this.

When the RRSP matures, before the end of the year in which you turn 71, you may convert your market-linked guaranteed investments into a RRIF. There should be enough liquidities in your RRIF to allow for the annual minimum withdrawal. If you opt for a fixed or life annuity when your RRSP matures, you will not be able to use your indexed savings to this end because purchasing an annuity does not allow you to select the type of investment that is made with your capital.