Before Retirement
Financial Planning
Financial planning is more than a set of tactics – it’s a process that determines how you can best meet your life goals through proper management of your financial affairs. Your needs define your plan – not vice versa. Professional financial planning integrates knowledge and skill across a broad range of topics. The key is to look at the big picture and identify interrelationships among sometimes conflicting objectives. It’s important to review your plan annually and update it after a major life event.
Registered Retirement Savings Plans
A Registered Retirement Savings Plan (RRSP) allows you to make tax-deferred contributions toward retirement savings. By deferring taxes on the growth within the plan you can save money. What’s more, the money you contribute can be used to reduce earned income for tax purposes during your pre-retirement years. An RRSP can be opened at any time but must be collapsed by the end of the year in which you turn 71 years old. Up to 100% of your RRSP may be invested in foreign holdings.
Tax-Free Savings Accounts
Tax-Free Savings Accounts (TFSA) allow you to save or invest your money without having to pay tax on any income or capital gains. You can withdraw funds tax-free at any time. The annual contribution limit is currently $5,000 per calendar year. Unused contributions can be carried forward to future years.
Registered Education Savings Plan
A Registered Education Savings Plan (RESP) is a tax-deferred investment plan designed to assist saving for your child’s or grandchild’s post-secondary education. Unlike an RRSP, your contributions cannot be used to reduce earned income for tax purposes; they are, however, allowed to grow on a tax-deferred basis within the plan. The earnings are taxable in the hands of the beneficiary (the student, who’s usually in a lower tax bracket) when withdrawn. You can contribute up to $5,000 per year per child, to a lifetime maximum of $50,000 per child. Canada Education Savings Grant money is available – up to $7,200 per child.
Cash Accounts
A Cash Account is an investment account that is not an RRSP, RRIF, TFSA or RESP. This is type of account holds stocks, exchange traded funds, bonds, mutual funds, segregated funds, term deposits and, yes, cash. Investments in a cash account are subject to tax on interest, dividends and capital gains.
Referrals for Tax and Wills Strategies
While engaged in retirement design we work with our clients’ accountants and lawyers. When appropriate we will refer our clients to specialists in estate and tax planning.
Disability, Critical Illness and Life Insurance
Planning for the future involves considering strategies that ensure continued income for yourself, your business and your family. Without a systematic, disciplined and comprehensive strategy your lifestyle and standard of living could be at risk.
After Retirement
Financial Planning
Financial planning is more than a set of tactics – it’s a process that determines how you can best meet your life goals through proper management of your financial affairs. Your needs define your plan – not vice versa. Professional financial planning integrates knowledge and skill across a broad range of topics. The key is to look at the big picture and identify interrelationships among sometimes conflicting objectives. It’s important to review your plan annually and update it after a major life event.
Estate Preservation
Preservation denotes the most cost-effective ways to pass your estate to your heirs. Ensure your property goes to whom you want, in the way you want, and when you want it transferred. A little advance planning will minimize taxes, court costs and legal fees. The first step to make sure you have a durable Power of Attorney and a Will.
Registered Retirement Savings Plans
A Registered Retirement Savings Plan (RRSP) allows you to make tax-deferred contributions toward retirement savings. By deferring taxes on the growth within the plan you can save money. What’s more, the money you contribute can be used to reduce earned income for tax purposes during your pre-retirement years. An RRSP can be opened at any time but must be collapsed by the end of the year in which you turn 71 years old. Up to 100% of your RRSP may be invested in foreign holdings.
Registered Retirement Income Funds
A Registered Retirement Income Fund (RRIF) is a tax-deferred investment plan. A RRIF can be created tax-free with the proceeds of a Registered Retirement Savings Plan (RRSP) or another RRIF. A RRIF can be opened at any age. A minimum amount must be withdrawn and taxed as income every year. The minimum amount to be withdrawn is determined by a formula that takes the age of planholder or spouse into consideration. Withdrawals can extend over the lifetime of the planholder or spouse. You can access your principal at any time, tax-free.
Life Income Funds
A life income fund (LIF) is a specific type of registered retirement income fund (RRIF) from which you can withdraw a retirement income. Funds originate from a supplemental pension plan. You cannot withdraw more than an authorized maximum amount each year from an LIF. You must withdraw the minimum required under tax rules.
Tax-Free Savings Accounts
Tax-Free Savings Accounts (TFSA) allow you to save or invest your money without having to pay tax on any income or capital gains. You can withdraw funds tax-free at any time. The annual contribution limit is currently $5,000 per calendar year. Unused contributions can be carried forward to future years.
Annuities
An annuity is an investment contract that offers a series of guaranteed payments over a fixed number of years or the lifetime of one individual or more.
Segregated Investments
Classified as insurance products, segregated funds (sometimes referred to as Guaranteed Investment Funds or GIFs) offer several unique characteristics, such as: an ability to lock in gain; principal guarantees; death benefit guarantees and potential creditor protection. Segregated funds can play an integral role as part of a comprehensive financial plan.
Referrals for Taxes, Wills and Business Succession Planning
When appropriate we refer our clients to specialists in estate and tax planning.
Disability, Critical Illness and Life Insurance
Planning for the future involves considering strategies that ensure continued income for yourself, your business and your family. Without a systematic, disciplined and comprehensive strategy your lifestyle and standard of living could be at risk.
You need a retirement strategy. Meet with us to plan your future.