why a group rrsp?
TRANSCRIPT
Get together for a retirement that works
• Group Group RRSPsRRSPs
This presentation is offered by
• Is provided by Investors Group Financial Services Inc., a financial services firm.
• This is a general source of information only. It is not intended to provide personalized tax, legal or investment advice, and is not intended as a solicitation to purchase securities. For more information on this topic or any other financial matter, please contact me, Turenne Joseph, consultant at Investors Group.
• Trademark(s) owned by IGM Financial Inc. and licensed to its subsidiary corporations.
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Turenne Joseph, Financial Security Advisor, Mutual Funds Representative Licensed in Québec, Ontario and British Columbia Investors Group Financial Services Inc., a financial services [email protected]
Pay Yourself First
• What has first claim on the paycheque?▫Taxes?
▫Mortgage / rent?
▫Loan payment?
▫Other living expenses?
• Part of what’s earn should be to keep
• An easier way to build a retirement nest egg
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A Group RRSP?• Employer sponsored
• All it takes is five members
• Individual Accounts
• Flexible payroll deduction
• Tax-deferral benefits
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Benefits of joining a Group RRSP• No up-front costs
• Accelerate the plan when & how it’s wanted
• Instant tax reduction
• Investment control
• Professional management & advice
• Portability
• Income splitting
• Easy enrollment
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The power of tax-deferred compounding
$0
$100 000
$200 000
$300 000
$400 000
$500 000
$600 000
$700 000
10 Years 20 Years 30 Years 40 Years
$100/mth
$150/mth
$200/mth
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• The effect of contributing $100 to $200 per month to an RRSP over 10 to 40 years at an assumed pre-tax rate of return of 8%.
• For example, a $200 monthly contribution over 20 years into an RRSP would grow to $114,476.
The rate of return is used only to illustrate the effects of the compound growth rate and is not intended to reflect future values or returns on investment.
More affordable than maybe assumed
•Contributions reduce taxes immediatelyFor example:
Your $300 RRSP contribution only reduces your paycheque by $210
You invest more!Assumed blended federal and provincial tax rate = 30% of gross pay less deductions and
credits. Note: tax withheld is different in each province. For reference, tax tables are available
from your payroll administrator or the local Canada Revenue Agency office.
Gross pay $4,000 Gross pay $4,000
RRSP contribution $300
Taxable income $3,700
30% income tax deducted ($1,200)
30% income tax deducted ($1,110)
Net after tax take home pay $2,800
Net after tax take home pay $2,590
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Group RRSP restricted access• A special plan type designed to restrict access
to the Group RRSP account.
Here’s what it means for each individual…• Assets are available for redemption or transfer
only when:□ You leave the Company□ You reach age 55□ You retire from the Company□ You die□ You become permanently disabled□ Your employer grants permission
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To start today…
• No set-up fees
• With as little as $50.00 per month
• Tax-deferred growth
• Quarterly investment statements
• Flexible
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My role as your Consultant
• To assist each individual in determining their current financial situation.
• To help each individual achieve their financial goals.
• To build a personalized plan for each individual and help them put it in action.
• To provide ongoing service to ensure each individual plan stays on track for their financial success.
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Get together for a retirement that works with a Group RRSP
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“Get together for a retirement that works” © Investors Group Inc. 2010 (03/2010) C3150
You have questions?
Maximize your possibilities and financial freedom…Maximize your possibilities and financial freedom…
Turenne JosephTel. Office : (514) 350-8750 ext. 8815Toll Free : 1 (866) 688-8750Fax : (514) 350-8752Email : [email protected]
Financial Security Advisor
Mutual Funds RepresentativeLicensed in Québec, Ontario and British Columbia
Investors Groups Financial Services, a Financial Services Firm.
2001 University, Suite 1620Montréal QC H3A 2A6