 Asset Management |
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RRSPs (Registered Retirment Savings Plans)
One of the best investments you can make, registered investments are a great tax effective way to save money for retirement. Contributions made throughout the year are deducted off your taxable income at income tax time and your investment growth is not taxed until withdrawal - which is ideally at retirement when you can take advantage of a more tax preferred rate.
You are currently allowed to contribute up to 18% of your previous year’s earned income to your RRSP each year. Spousal plans are also available. Making regular contributions to your RRSP is the easiest and fastest way to accumulate growth and you decide how much and when to invest.
Non-Registered investments are similar to personal savings accounts but unlike savings acccounts at the bank, they are exposed to great interest rates! Non-Registered investments are held outside your RRSP and the growth (i.e. dividend income, captial gains, interest income) are taxable at income tax time.
Guaranteed Investments have the interest rate fixed for a set period of time, this can be as short as 1 month to 10 years. Both Industrial Alliance and Empire Life offer competitive interest rates on their GICs.
RRIFs (Registered Retirement Income Funds)
RRIFs are great ways to turn your RRSPs in to a steady income at retirement. You are able to withdraw an income from your investment while still benefiting from tax sheltered growth. You may also hold GICs as well as other vehicles inside your RIF; plus they contain some guarantees which protect your investments from creditors.
Annuities provide guaranteed income. Industrial Alliance and Empire Life offer competitive annuity rates. Different types of annuities are:
Guaranteed Life annuities pay you a guaranteed income for as long as you live
Fixed Term annuities pay you a set income for a guaranteed period of time only, usually up to age 90
Joint-Life-and-Last Survivor annuities pay a guaranteed income while you and your spouse are alive, and continue paying that income to the surviving spouse if one of you die
Only life insurance companies can sell Guaranteed Life Annuities and Joint Annuities, most banks only sell fixed term.
Email Jane: jane@hffn.net to set up an appointment with Sue Hood for a confidential and personal review of your needs.
Alternatively, you may call: 613-968-5127
