RRSP

The registered retirement savings plan (RRSP) is administered by the federal government. The amounts that accumulate in an RRSP are tax sheltered and are generally used to provide retirement income. The contributions paid into an RRSP are tax deductible, and the maximum contribution amount for the current year is established on the basis of the income earned in the previous year.

RRIF 

The registered retirement income fund (RRIF) enables the annuitant to gradually withdraw his registered funds and to pay taxes only on the portion withdrawn each year. The minimum withdrawal is calculated according to a percentage of the value of the plan as of January 1 each year and according to the annuitant’s age. The calculation may be made by using the age of the younger spouse in order to minimize the withdrawals. There is no fixed maximum amount for the withdrawals.

GICs 

A Guaranteed Investment Certificate (GIC) is a Canadian investment that offers a guaranteed rate of return over a fixed period of time.

Segregated Funds  

A segregated fund is a type of pool investment that is similar to a mutual fund, but is considered an insurance product. Proceeds received by the insurance company are used to purchase underlying assets, and then shares of the segregated funds are sold to investors.

Segregated funds products are offered through Manulife Investments and/or multiple carriers.

Subject to any applicable death benefit guarantee, any part of the premium or other amount that is allocated to a segregated fund, is invested at the risk of the policy owner and may increase or decrease in value according to the fluctuations in the market value of the assets of the segregated fund.

Pension Plans

In many ways, a pension plan is a method in which an employee transfers part of his or her current income stream toward retirement income. There are two main types of pension plans: defined-benefit plans and defined-contribution plans.

Annuities 

An annuity is a contractual financial product sold by financial institutions that is designed to accept and grow funds from an individual and then, upon annuitization, pay out a stream of payments to the individual at a later point in time.

LIRA 

A locked-in retirement account (LIRA) is a special registered retirement savings plan (RRSP) into which you can transfer the amounts that are in your supplemental pension plan (SPP). The amounts held in this type of contract are “locked in” and cannot be withdrawn until you retire. They can be used only for retirement income.

LIF 

A Life Income Fund (LIF) is a special type of Registered Retirement Income Fund (RRIF) into which you can transfer funds that originate from pension benefits from under a federally regulated pension plan.

Education Savings

A registered education savings plan (RESP) is the ideal financial vehicle to meet the job market’s education requirements and help you defray mounting education costs.

Tax Free Savings 

An account that does not charge taxes on any contributions, interest earned, dividends or capital gains, and can be withdrawn tax free.

a long healthy
financial life

A very important part of having a wonderful life is the ability to have the proper financial protection in the event life throws you an expected curve. But too often good financial health planning is overlooked by some people until it’s too late, and when a serious health issue arises, financial support may become limited.

As Canadians, we are very fortunate to have universal medical coverage, but there are limitations to what our public health care system covers.

Unless you have an employer sponsored program at work, you should consider a personal benefit plan which can provide you with coverage for dental, prescription drugs, vision care expenses and a variety of specialty health care services.

Ken provides simple and smart planning options that you can follow to insure that the financial health of you and your loved ones will be protected in the event of an illness or life-changing event. 

enjoy the
retirement life

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.

Keep your money stable

In retirement, it’s important to keep at least a portion of your money away from the volatility of financial markets. High-interest savings accounts can be a great way to grow your savings while also keeping it accessible for day-to-day expenses. This type of account can also be a great option for the conservative portion of your tax-free savings and RRSP savings.

Prepare for the unexpected

If you’re able to allocate sufficient cash to a “rainy-day” fund, a high-interest savings account can keep your money growing and accessible.

If your emergency savings are smaller than you’d like, consider opening an all-in-one account, which includes a line of credit secured by your home. An all-in-one account allows you to earn a high rate of interest when your account has a positive balance and, if a financial need arises, you have convenient access to a secured line of credit.