Registered Retirement Savings Plan (RRSP)
What is an RRSP?
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RRSPs are a great savings accounts to fund your retirement. An RRSP is an investment account, recognized by the government, that provides tax benefits which promote higher earnings and tax deferral.
Benefits of RRSPs:
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An RRSP allows you to defer taxes on investment earnings, which ultimately leads to more growth and more money in the pockets of the investor
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RRSP Contributions are deducted from your taxable income, reducing your current tax bill.
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When you retire and need income, your tax bracket will be significantly lower, providing great tax savings.
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Use the Home Buyers Plan to pull from your RRSP to fund your first home! (see below for more details)
Pension Plans and LIRAs
There are 2 common scenarios that happen in your life. 1) You have a career change and your pension plan at your old job needs to be managed or 2) You are retiring with a pension from your career. You can either let it sit with the pension manager or have us manage it for you.
Benefits of us managing it:
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Professional Management. We put together a plan for your pension funds base on your risk tolerance, market conditions and suitability. Most pensions funds are very large which means you will not get any advice or active management on your pension. Generally, you are auto-assigned a risk tolerance based on your age which generates an investment that you will be broadly assigned to.
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Availability and Communication. Generally, pension plan administrators are impersonal and may not take into account your individual needs and you may wait for long periods of time to actually talk to someone. We are available everyday of the week with advisors who are committed for the long term. You will have the satisfaction of speaking with a consistent advisor who understands your financial picture.
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More Product Access. Pension funds will deny your ability to invest in funds that may present more risk than their robotic function can allow. We give a humanitarian approach to your funds and decide together what fits best.
Home Buyers Plan (HBP)
What is it?
The HBP is a program that allows you to withdraw from your RRSPs to buy or build your first-time home.
How Does it work?
Once you are considered a first-time home buyer, you may withdraw up to $35,000 from your RRSP tax free to fund your purchase. That’s right – no withholding tax or income tax is charged from the withdrawal.
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Repayment: You must repay the withdrawn funds within a 15-year period, starting the second year from withdrawal.
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Benefit: Provides people with access to their RRSPs, without penalties, that they normally would not have.