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RDSP

See Registered Disability Savings Plan.

Real estate fund

A type of mutual fund primarily invests in securities offered by public real estate companies.

Real estate income trust (REIT)

A company traded on a major exchange that owns (and sometimes operates) income-producing real estate. Examples include apartments, malls, offices, and industrial parks.

Real return

What you make on an investment after you remove the effect of inflation.

Real return bond (RRB)

A special Government of Canada bond that protects you from inflation. You get higher interest payments if the Consumer Price Index rises. You also get back more money than you invested to keep pace with rising prices.

Real return bonds

Real return bonds are issued by the Government of Canada and are also designed to keep pace with inflation. Twice a year, you receive interest payments adjusted to the CPI. When a real return bond matures, the amount you get back (the face value) is also adjusted for inflation.

Realized capital gains

The money you make when you sell an investment for more than you paid for it. The gain is not realized until you sell the investment.

Record date

The cut-off date that determines which shareholders are eligible to receive a dividend or distribution. You must officially own a share on the record date to receive the upcoming dividend. The record date is two days after the ex-dividend date.

Redeemable GIC

A Guaranteed Investment Certificate (GIC) that gives you the option to cash out early without penalty. It guarantees that you will get your money back with interest.

Redemption fee

A fee that some mutual funds charge when you sell or redeem units. Unlike a deferred sales load, you pay this fee to the fund (not to a broker). It covers the costs of redeeming your units.

Refundable tax credit

The government will pay you the refundable tax credits you qualify for, whether you owe tax or not. To claim them, you must file a tax return.

Registered Disability Savings Plan

A savings plan that allows people with disabilities and their families to save for the future. Government grants add to your savings and your investments grow tax-free.

Registered Education Savings Plan

A savings plan that helps you save for a child's post-secondary education. The money that you save in the plan grows tax-free.

Registered Pension Plan

A formal plan that provides benefits to you when you retire. Your employer puts money into the plan (and sometimes you do, too). You don’t pay tax on the money in your plan until you take it out.

Registered Retirement Income Fund

A plan that holds your retirement savings and provides income after you retire. It works like an RRSP in reverse because you withdraw money instead of saving. There are rules about how much you can withdraw each year.

Registered Retirement Savings Plan

A plan that lets you save for retirement while lowering your income taxes. You choose how you want to invest your savings. You don’t pay tax on any money in your account until you take it out.

Registrant

A person or company that is registered with the securities regulator in the province or territory where they do business. They must be registered before they can legally sell securities or offering investment advice.

Registration

A requirement for any person or company trading investments or providing advice in Canada. Securities industry professionals are required to register with the securities regulator in each province or territory where they do business.

Reinvestment risk

The risk of loss from reinvesting principal or income at a lower interest rate.

RESP

See Registered Education Savings Plan.

RPP

See Registered Pension Plan.

RRIF

See Registered Retirement Income Fund.

RRSP

See Registered Retirement Savings Plan.

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