Canadian investors are using their self-directed Registered Retirement Savings Plan (RRSP) to build portfolios of stocks that can provide retirement income to complement CPP, OAS, and work pensions.
One popular RRSP investing strategy involves buying top TSX dividend stocks and using the distributions to automatically acquire additional shares.
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Power of compounding
Every Canadian learns about the power of compounding the first time they build a snowman. The snowball, as it is rolled, steadily picks up more snow and eventually becomes a giant snow boulder.
The same concept applies to building a retirement fund when a person owns dividend stocks and reinvests the distributions. Each time a…
