Retirement Planning
To retire in comfort... it's a goal most of us have. But what exactly does it mean to you?
Time to travel. Pursue a favourite hobby. Give back to the community. However you'd like to spend your retirement, our retirement planning experts are here to help. We'll help you put together a customized plan to ensure that you have enough retirement income to live the life you love.
Years from now, you'll be glad you planned today. Smart planning today ensures that you'll have sufficient retirement income so you can look forward to retirement free from stress and worry. Our skilled financial planners will show you the best ways to grow your retirement savings and minimize taxes.
Just starting to save? Or are you getting close to retirement age and want to make the most of your retirement income? Whatever stage of life you're in, Strategic Investment Planning has a retirement planning solution for you.
Plan for your retirement today... because, the brightest future is the one you planned for.
Individual RSP
Registered Retirement Savings Plan (RRSP) is a personal savings plan registered with the Canadian federal government allowing you to save for the future on a tax-sheltered basis. An RRSP is an investment portfolio - your designated retirement savings. It can contain a variety of investments.
What makes an RRSP special is that your contributions to it are tax deductible and your portfolio grows tax sheltered. If you are under 72 years of age and earn income, we encourage you to take advantage of the benefits an RRSP can offer.
Spousal RSP
A spousal RSP is an account into which one spouse makes contributions to the other spouse's RRSP who is in a lower tax bracket and the owner of the account.
The main advantage of a spousal RSP is to help divide assets that will produce future income and thereby reduce the family's overall tax burden. Typically a couple with one wage earner is best suited for a Spousal RSP. When used correctly, spousal RSPs can be an effective tool in planning for a couple's retirement.
Life Income Fund - LIF
A life income fund (LIF) is a specific type of registered retirement income fund (RRIF) from which you can withdraw a retirement income (payment). The amounts in an LIF originate from a supplemental pension plan (pension fund).
A Life Income Fund (LIF) is a locked-in retirement income investment plan that allows you to convert Locked-in RRSPs or LIRAs (Locked-in Retirement Account) to income. There are minimum withdrawal amounts that must be made each year. You may "unlock" a portion of your pension money when a LIF is set up. This "unlocked" money may be withdrawn in cash or moved to a RSP/RIF where the withdrawal rules are more flexible.
Locked-In Retirement Account - LIRA
A locked-in retirement account (LIRA) is a special registered retirement savings plan (RRSP) into which a person can transfer the amounts that are in a supplemental pension plan or a life income fund (LIF).
Surprisingly enough during your career, you may find yourself working for more than one employer. If this happens you may need to look at the options that are available to you with regards to your accumulated pension benefits. One option may be to consolidate these funds into a Locked-In Retirement Account (LIRA). Under a LIRA generally no withdrawals are permitted. However under certain circumstances such as "Financial Hardship Rules" there are some unlocking provisions.
Pension funds transferred to a LIRA can not be cashed out because it can only be used for retirement income and must be used to purchase a life annuity from an insurance company, transferred to a Life Income Fund (LIF) or to a Locked-In Retirement Income Fund (LRIF).
Registered Retirement Income Funds - RRIF
RRIFs are similar to RRSPs in several respects. Each allows for tax-deferred growth, offers several investment options and are government regulated.
A major difference between an RRSP and a RRIF is that with an RRSP, you can make annual contributions as long as you have earned income and contribution room available. Withdrawals are optional and will be taxed. With a RRIF, contributions are not allowed and you must make minimum mandatory withdrawals each year.
A major advantage of a RRIF is that your balance continues to grow tax-sheltered until withdrawn.
Tax-sheltered growth: Your investments will continue to grow tax-sheltered, so it keeps working for you.
Control your income: You can manage the amount and the frequency of your withdrawals, subject to the legislated minimum annual payment requirements.
Tax-free transfer to spouse: You can pass your RRIF assets on to your spouse tax-free when you die.
Flexible Investment options: You have the option of converting to a more secure guaranteed income at any time.
Free financial calculators to help you manage your investments.
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Michael Dumond
Susan McArter
© 2011 Strategic Investment Planning