RRSPs are designed to help you save for retirement. According to Canada Revenue Agency rules, you must close your RRSP by the end of the year in which you turn 71, although you can certainly do so earlier if you're ready to begin generating income from those savings.

Investors are often comforted by investing in what is familiar. For Canadians, that may include investing a greater share of their portfolio in Canadian securities.

During accumulation, investors enjoy a tax deferral when the price of their holdings increases. In tax terms, this is known as an unrealized capital gain, and works whether securities are held directly or within a mutual fund.

As an investor you may hold stocks and bonds directly, or you may hold them inside a mutual fund. Either way, your investment objectives will be a combination of principal protection, income generation and capital growth.

You harnessed your spending habits to set aside savings. You researched the investments you deemed worthy of your hard-earned dollars. And now, as you admire your accumulating wealth, there’s a dark cloud ahead – income tax.