Did you know the number of years you work are likely to be the same number of years you are retired? You need a solid financial plan to make sure you will be financially secure when you stop working. Here are some tools we use to make sure you are able to create, manage and increase your retirement savings.
We will help you get the most out of your money and prepare you for any tax implications that may be otherwise unforeseen. Book a free consultation with one of our experienced advisors to discuss your retirement goals and create a personalized financial plan.
An RRSP is a retirement savings plan that can hold a variety of different investments. You can invest in your choice of mutual funds, segregated funds and Guaranteed Investment Certificates (GIC's).
The reason why an RRSP is so attractive is because any growth or income earned is tax-deferred as long as the funds stay in your RRSP. However, when you take money out, you have to pay tax on it. Each year, you can make contributions to your RRSP to help reduce your taxes. There is a limit each year for how much you can contribute so be careful not to exceed that.
You can continue to save money and defer tax in your RRSP to a maximum age of 71, at which time it must be converted to an income through a Registered Retirement Income Fund (RRIF).
You can elect to receive payments from your RRIF over and above the mandated minimum to supplement your retirement income from other sources such as company pensions and government programs.
In Canada, we have so many systems set up to help us in the long run. One of these systems in place is called the Canada Pension Plan (CPP).
So, how does it work? While you are employed, a little from each paycheck is paid into the Canada Pension Plan. Then, when you retire, you can apply for CPP to begin receiving this pension. CPP benefits can be drawn as early as age 60 (reduced 0.6% for each month before 65) or as late as age 70 (increased 0.7% for each month after 65).
In Canada, we have so many systems set up to help us in the long run. One of these systems is called Old Age Security (OAS).
This is the largest Canadian Government pension plan in existence and it is funded via general tax revenues ― this means you do not pay into this pension plan yourself. You are eligible to receive monthly payments from OAS providing you are 65+ years old, a Canadian citizen or legal resident when you apply, and you have lived in Canada for 10+ years since the age of 18. OAS also provides three different benefits depending on your personal situation. In some cases, you will need to apply for OAS yourself.
Did you know the number of years you work may equal the number of years you are retired? It’s true!
For you to live comfortably and be able to carry out your retirement goals, you will need an appropriate amount of money for the lifestyle you desire. If your employer has a workplace pension plan set up, part of your income can come from there once you have retired. Your employer will regularly make contributions and they will also help you contribute to your future by putting part of your salary into it. In some cases, you can even choose the investments in your plan.
Mutual funds, exempt market products and/or exchange traded funds are offered through Investia Financial Services Inc. Insurance products are offered through Matchett Financial Services Inc.
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