Starting early can mean big rewards later on. It’s also about getting better rates on the Guaranteed Investment Certificate portion of your retirement portfolio than normally offered in the local bank branch. This can add many thousands of dollars to the pool of money needed to attain your retirement income goals. Getting your RRSP started is one thing; getting your RRSP portfolio to work 24/7, harder, better, smarter, that’s what we do – and GICs are guaranteed.
Filing a tax return at an early age to report any part-time earnings will create RRSP contribution room that can be utilized in later years when deductions against income are more beneficial (when your marginal tax rate is higher).
Also, if you start at an early age and put aside 10 per cent of your earnings into RRSPs, TFSAs or other savings accounts, you will get a big head start on your retirement planning and reduce the need to set aside much larger amounts in your later years.
Pre-retirement income planning
As you move through your income-producing years, your priorities change. You start out with a savings account; you progress into growth-related investments; and then reach the point where your RRSP needs to be staged for conversion into income-related products to meet your retirement goals.
Other legal and relationship considerations such as the appointment of beneficiaries are large factors within any estate-planning process – not to be taken lightly or rushed.
Choose from a variety of investment options
Types of RRSP savings and investment services available from our financial institution partners include:
- Savings Accounts: High-yield daily-interest investment accounts – used for their flexibility and convenience as “catch all” accounts in managing an overall retirement portfolio.
- Fixed term accounts: Term deposits and GICs are short-term notes, 1- to 5-year GICs and beyond, adding a “guaranteed” foundation within the objectives and strategies of your Retirement Savings and Income Plan.
- Annuities and Retirement Income Funds (RRIFs): When it comes to converting your RRSP monies to income-producing investments, and planning for the future, it’s important to recognize that no one solution fits all. In fact, combining different specialty products to suit particular needs is sometimes the better option. Annuities can complement a post-retirement portfolio planning nicely, while RRIFs have greater flexibility. Each option selected should be related to your non-registered investment strategy, thus avoiding inconsistency or duplication.
- Pension Income/Life Income funds: Company retirement pension plans, Canada Pension Plan and Old Age Security plus the Guaranteed Income Supplement are all considered in the pre-retirement income planning process.
How we can help you
Careful and early consideration of all sources of income can lay the Cornerstone to a comfortable retirement. We can show you how to utilize your resources within your timetable towards your future retirement goals.
The best way to start is with a no-obligation casual discussion. You’re invited to a free question and answer consultation as the first step in helping you figure things out – call today, 905-844-7700
The best way to keep track of your investments (Read More)
Our MoneyGuide Statement and Interest Income Planner statements can hold a complete set of financial records designed to make your financial picture as clear to you as it is to your accountant.
GICs, RRSPs, RRIFs, LIFs, a TFSA and other fixed-term deposits are organized and updated in an easy-to-read format. Year over year maturity and interest income reports put you in control, for easier money management.
