Whether you are looking to save for a down-payment on your dream home, pay for your child’s education, or reward yourself with a retirement of travel, it is never too early to start thinking about your financial goals. We provide financial planning and retirement services that focus on tax efficient investment solutions to maximize your earnings and savings.
Helping You Achieve Your Retirement Funding Goals.
Registered Retirement Savings Plans (RRSP)
A Registered Retirement Savings Plan or RRSP is a tax advantaged investment vehicle designed by the government to encourage Canadians to save for their retirement. There are two main tax advantages to an RRSP.
- Contributions made into your RRSP can be deducted against your earned income (thereby reducing your tax liability in that year.)
- Investments inside your RRSP account are sheltered from taxation until you withdrawal them (providing years of tax-deferred growth potential.)
Generally the funds invested in an RRSP are designated for retirement purposes. However, there are 2 programs in particular that allow an individual to make a tax free withdrawal from their RRSP:
- HBP - Home Buyers Plan (make withdrawal from RRSP to provide a down payment on a first home)
- LLP - Life Long Learning Plan (make withdrawals from RRSP to pay for an eligible education program)
It is important to note that both of these programs require the withdrawn amount to be repaid at some point in the future. Click on the link above to learn more about the particulars of each program.
Consider:
- Find out the amount of Income your RRSP savings will provide in retirement
- Do your RRSP holdings accurately reflect your investment goals
- Start Saving for your retirement today by setting up an RRSP account.
Watch Your Investments Grow, Tax Free.
Tax Free Savings Accounts (TFSA's)
Introduced in 2009, the Tax Free Savings Account is a flexible, general purpose savings vehicle available to Canadian residents 18 years and older wanting to save for the future. The TFSAs’ flexible structure allows the holder to be able to withdraw money from the account at any time, free of taxes. Contributions into the account are not tax deductible; however this represents a lucrative opportunity for individuals with left-over income to invest in a savings vehicle, without the pressure of time constraints.
The account also alleviates the burden of the capital gains tax. The interest-income will be able to compound tax-free. In essence, the account-holder can withdraw any amount out of the TFSA account, free from capital gains, dividend or interest taxation. Any unused TFSA contribution room under the annual prescribed maximum can be carried forward to subsequent years. The TFSA also allows income splitting to an extent, because a higher-earning spouse can contribute to the TFSA of a lower-earning spouse.Tax Free Savings Accounts are a great complement to existing registered savings plans like the Registered Retirement Savings Plan (RRSP) and the Registered Education Savings Plan (RESP).
Consider:
- Get started by opening a Tax Free Savings Account
- Are you maximizing your tax free growth? Get a review of your existing TFSA
- How does your TFSA integrate into your financial plan?
Ensuring a Smooth Transition From Saver to Spender.
Registered Retirement Income Fund (RRIF)
A Registered Retirement Income Fund or RRIF is similar to an RRSP but the focus shifts from saving for retirement to providing you an income throughout your retirement. By law, you must convert your RRSP accounts into a RRIF by the end of the year in which you turn 71. Minimum withdrawals must be made from the RRIF the year after it is established. Investments held inside a RRIF grow in a tax-deferred manner just as with an RRSP. The two primary differences between an RRSP and an RRIF are:
- No further contributions can be made once conversion to a RRIF has occurred.
- The RRIF minimum withdrawal schedule must be adhered to. A minimum RRIF withdrawal is an annual obligatory amount which is cashed out of a RRIF and sent to the account-holder without withholding tax. The withdrawal remains taxable Canadian income, but is eligible for a tax credit.
The minimum RRIF withdrawal each year is determined by a percentage, depending on the holder's age, of the total value of the plan on January 1 each year. The holder of an RRIF may elect to withdraw an amount greater than the minimum RRIF amount for that year, though withholding tax will apply to this supplementary amount.
Consider:
- Learn how to turn your RRIF into a guaranteed lifetime income.
- Find out how much income your RRIF will provide in retirement.
- What is the most tax efficient way to get funds out of your RRIF account.
Maximize Education Savings With the Proper Registered Education Savings Plans (RESP)
With the help of an RESP you, as a parent, friend or family member, can start putting aside money. A Registered Education Savings Plan is a tax advantaged investment program created by the government to encourage saving for education. Your contributions can grow surprisingly quickly because it is tax sheltered and the Government of Canada offers the Canada Education Savings Grant. In order to set up an RESP account the plan beneficiary must have a Social Insurance Number and you must choose and RESP provider that best suits your needs.
There is a large variation between plan minimum contributions, fund selections and general rules of the RESP program from one provider to the next. I will help you to determine the RESP provider and plan that is best suited to your needs. Some of the largest RESP providers in Canada offer the most restrictive plans. My knowledge of the RESP market place allows me to recommend the RESP program that is most beneficial to you and your family.
Combining The Growth Potential of a Mutual Fund With the Security of a Life Insurance Policy.
Segregated Funds (SEG FUNDS)
A Segregated Fund is a type of investment fund administered by an insurance company in the form of an individual, variable life insurance contract offering certain guarantees to the policyholder such as reimbursement of capital upon death. As required by law, these funds are fully segregated from the company's general investment funds, hence the name Segregated Funds. Like mutual funds, segregated funds consist of a pool of investments in securities such as bonds, debentures,and stocks.
Advantages of segregated funds include:
- 75% to 100% return of investment guaranteed at maturity or death.
- Potential creditor protection.
- Avoidance of probate fees when naming a beneficiary other than the estate.
Consider:
- Learning about the various products available.
- Using Third Party Fund Managers.
- How much can you save in probate fees by incorporating seg funds into your financial plan?
Annuities
What is an Annuity?
In exchange for a single lump-sum investment, an insurer makes guaranteed regular income payments to a client that contain both interest and a return of principal. Annuity payments can continue for a chosen period of time or for the lifetime(s) of one or two people. Payment guarantee options are available to ensure the income continues to a spouse or other designated beneficiaries, in the event the annuitant dies prematurely. These options can ensure a minimum amount is paid out of the annuity, no matter what happens. Clients can also choose to index their annuity income, to help guard against inflation. In addition, non-registered annuities can offer significant tax advantages for clients. Because the interest income can be averaged over the lifetime of the annuity, there is an attractive element of tax deferral (some conditions apply).
Life Annuity
Life Annuities provide dependable, guaranteed income for my clients’ entire retirement, no matter how long they live.
Term Certain Annuity
A Term Certain Annuity can provide guaranteed income for a specific period of time. Clients can partially defer taxation of the interest income for non-registered investments, or choose indexing where permitted.