Investments, including mutual funds and term deposits, can play a key role in your financial security plan. For individuals, a mix of registered and non-registered savings, income and pension plans can help achieve short- and long-term goals. For employee groups, we can offer advice on registered and non-registered savings and pension plans.
- Registered retirement savings plans and Registered education savings plans
- Segregated fund policies
- Group retirement and savings plans
A registered retirement savings plan (RRSP) has several advantages. For investors under 72, it can allow tax-deferred compound interest and help accumulate savings to achieve long-term retirement goals. It also allows for a variety of choice of specific investment options. For families with children, a registered education savings plan (RESP) can help finance post-secondary education.
Some of the advantages of RRSPs and RESPs include:
- Tax-deductible RRSP contributions
- Tax deferral of compounding income and growth
- Based on a family’s net income and the amount contributed, a government RESP grant is available
- When money is withdrawn from an RESP, the student typically pays little tax, due to a low income tax rate
Working together, we can examine RRSP and RESP investment options in order to build a customized portfolio that takes into consideration your financial security goals, tolerance to risk and timeline. Contact us today to find out more.
The Tax-Free Savings Account (TFSA) is a flexible, registered, general-purpose savings vehicle that allows Canadians to earn tax-free investment income to more easily meet lifetime savings needs. The TFSA complements existing registered savings plans like the Registered Retirement Savings Plans (RRSP) and the Registered Education Savings Plans (RESP).
How the Tax-Free Savings Account Works:
- Investment income earned in a TFSA is tax-free.
- Withdrawals from a TFSA are tax-free.
- Unused TFSA contribution room is carried forward and accumulates in future years.
- Withdrawals made from your TFSA in the year will only be added back to your TFSA contribution rm at the beginning of the following year.
- Choose from a wide range of investment options such as mutual funds, Guaranteed Investment Certificates (GICs) and bonds.
- Contributions are not tax-deductible.
- Neither income earned within a TFSA nor withdrawals from it affect eligibility for federal income-tested benefits and credits, such as Old Age Security, the Guaranteed Income Supplement, and the Canada Child Tax Benefit.
- Funds can be given to a spouse or common-law partner for them to invest in their TFSA.
- TFSA assets can generally be transferred to a spouse or common-law partner upon death.
In a segregated fund policy, professional fund managers invest in a variety of individual securities. Depending on the performance of the segregated funds you select, your investment’s unit values will increase or decrease.
As a form of life insurance, it’s important to note that segregated fund policies have distinct advantages for some investors. These can include:
- Potential for creditor protection
- Savings on potential probate fees
- No trustee fees
Note that any amount allocated to a segregated fund may increase or decrease in value, and is invested at the risk of the policyholder.
For business owners, group retirement and savings plans can play a key role in attracting and retaining quality employees.
Just like you, your dedicated employees are working towards a safe, secure future. Either provided independently or paired with group benefits, a group savings plan is a convenient, flexible and affordable way to help your employees reach their long-term financial goals.
Employees gain instant tax savings for their Group RRSP contributions, since they are made using pre-tax payroll deductions. They also receive the peace of mind that comes from knowing every month they are building towards retirement.
We can help you and your valued employees choose group retirement and savings products. We will design an investment plan tailored to fit the needs of everyone involved. Choose from products like:
- Registered retirement savings plans designed specifically for groups
- Deferred profit sharing plans
- Defined contribution pension plans
- Non-registered savings programs
Contact us today to learn about how group retirement and savings plans can benefit your business.