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Retirement Savings Plan

 

At Precision Insurance, we offer a flexible registered retirement savings plan (RRSP). We also offer a locked-in retirement account (LIRA) to persons who have changed employers and wish to transfer amounts accumulated in their pension funds.
         

What is RRSP?

Any person under the age of 69 who has employment income.  

You may start contributing to an RRSP as soon as you have a qualifying income and have reached 18 years of age. The sooner you start to save, the sooner your savings will start working for you. For example, if you start contributing at 25 years of age rather than 35 years of age, your investments will be working for you longer, and they will generate more income, even if your contributions are lower.


Features and Advantages

You deduct the amounts paid from your taxable income.



You obtain an income tax deferral on your investment income .



Your protection against financial market fluctuations may attain and even exceed 100% of the capital invested.



You can borrow to increase your contributions through the Ecoflex RRSP line of credit.



You can protect your savings against potential creditors*.



You may pay by pre-authorized cheques if you wish.



You pay no annual administration fees.



Amounts withdrawn are taxed according to the tax tables in effect.

*Certain conditions apply.

Under the regulations, an RRSP must be converted to a registered retirement income fund (RRIF), or another retirement income instrument by December 31 of the year you turn 69.


How to maximize Your RRSPs


Contributing to an RRSP is doubly advantageous—your contributions entitle you to tax deductions, and your investment income (interest, dividends and capital gains) grows in a tax shelter until you withdraw the amounts accumulated.


The sooner you begin to contribute, the more advantageous your RRSP. Your investment income will build up over time to provide you with additional resources at retirement.


Contribute regularly. It is easier to make a small contribution every month than to contribute a larger amount at the end of the year. In addition, if you make your contributions at the beginning of the year, your money will start working for you sooner, and your RRSP will grow more quickly.


Contribute every year. Failing to contribute for a year may deprive you of considerable investment income generated by interest or a compound return.


Invest the maximum allowable amount to obtain the maximum tax refund.

The maximum amount you may invest in your RRSP this year is determined on the basis of the income you earned last year. You may contribute up to 18% of that income, up to a maximum of $14,500, less the pension adjustment (PA)—which is equal to your contributions to your employer’s retirement plan. The amount you may invest is indicated on the notice of assessment provided to you by the Canada Customs and Revenue Agency.


If you have not contributed the maximum allowable amount in previous years, you may utilize your unused contribution room now and increase the amount you save.


You may be well advised to borrow so that you can contribute the maximum allowable amount, because your tax refund and your investment income could exceed the interest on the loan.


Take advantage of a spousal RRSP, which allows either spouse to contribute amounts on behalf of the other. The contributing spouse may deduct the contribution from his or her income. However, the payments will eventually be withdrawn by the spouse on whose behalf the spousal RRSP was established.

If your spouse does not have any income from employment or if your spouse’s income is lower than yours, your contribution may result in a more advantageous tax deduction. When the funds are withdrawn, income tax will be deducted from your spouse’s income, but since that income will be lower than yours, the taxation rate will be lower, too.

Products Available

When you enrol in an RRSP, you can invest in the following investment vehicles:

Daily Interest Funds
For persons wishing to accumulate money to make investments and accumulate interest on a daily basis.


Principal Guaranteed with an Alternative Investment (PGA)

 

For persons seeking access to new investment strategies and a diversified portfolio with an emphasis on capital security.
         

Guaranteed Interest Funds

 

(See the rates in effect.)
For persons seeking capital protection and a stable return.
         

Investment Funds

 

For all types of investors, from cautious to aggressive, who are seeking sound diversification of their investments. No matter what the investment horizon, our wide range of investment funds can satisfy the needs of every investor.

Education Savings Plans

 

Build up a tax-sheltered fund to finance a child’s post-secondary education. A registered education savings plan (RESP) is the ideal financial vehicle to help you defray mounting education costs.
         

Non-Registered Savings Plans

 

Non-registered savings plans allow you to accumulate savings to carry out your plans or increase your retirement income.
         

Retirement Income Plans

 

You are a young retiree? We offer several types of plans to help you manage the savings you accumulated throughout your working life. These plans are designed to meet your new financial needs and help you make the most of your retirement.
         

Your Retirement Income Requirements (calculator)
         

Your Investor Profile

 
 



 
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