Looking for a little info on RRSPs or other retirement savings?

I'm 19, and now that I have a solid job (I'm an applications developer), I'm thinking I should be saving for the future (particularly, retirement). I already have a high-interest savings account, for expenses along the way like car or a house, but it offers something like 2.5%/year, and is really not controlled in anyway other than a $5 penalty for withdrawing money (no penalty for transfers).


I'm looking for something a little more long-term (like the 40 years til my retirement.. hopefully sooner since I'm starting now ;)... but that I have the option to withdraw from in a crisis. Maybe something I could throw a few thousand into now, make regular deposits into (automated, maybe 20$/week or whatever), and put in more money from time to time when I have it. Also, something fairly low risk would be best (so my savings aren't destroyed in recessions).





Is that basically what an RRSP is? Or is an RRSP something different?


Are there any other options? With, say, 10,000, what would be the best way to start my savings for retirement?


(I will of course go into my bank and chat with them, but I'd like to go in knowing at least a little bit about my options)





Thanks guys!|||This is a huge subject, so I will give you a quick summary and a few benefits:





You are correct that you can deposit funds into an RRSP account throughout the year. At the end of the year, all your yearly contributions (for that calendar year) are deducted from your taxible income. If your yearly taxible earnings are $50,000 and you have purchased $5,000 worth of RRSPs, your taxable income for that year is now $45,000. (Benefit 1).





Benefit two may apply to you a few years from now. The Ontario government has a Home Buyers Plan, whereby you basically can borrow against your RRSP contributions to purchase your first home. For example, if you have invested $50,000 in RRSPs by the time you are ready to buy your first house, you can use that $50,000 as a down payment towards the home's purchase. Your obligation is to pay this back into your RRSPs over 15 years. There is, of course, a lot more involved with this program, but this is the gist of it. (Benefit 2)





When you reach a retirement age, all your RRSP contributions are rolled into a RIF account, which you would use as your pention. The tax rate of deriving income through a RIF account in retirement is much less than income from an employer. (Benefit 3)





If funds are required before maturing into a RIF at retirment, you can withdraw amounts from your RRSP, but penalties and additional tax will have to be paid.





As far as risk is concerned, when you go to the bank to discuss options, they will do (by law) an investor profile, which should give you the type of long-term investment you are looking for, risk-wise.





This is only the tip of the iceberg, but it hopefully gives you a bit of background before your visit to the bank.





Best of luck.