Retirement is one of life’s most significant milestones. A special point in time when savings become sufficient to support a comfortable lifestyle, eliminating the need to work simply to earn a living. With it comes new found time freedom and the chance to pursue new hobbies, leisure and travel.
But achieving a comfortable retirement doesn’t just happen overnight. It takes some proactive planning and consistent saving habits for most people to realize their retirement dreams.
We assist our clients with a straightforward retirement planning process from the moment they begin to invest with us. Our planning process is convenient, easy to understand and it will provide measurable progress toward your retirement goals.
The customized retirement plan that we prepare for you will address your most pressing questions, such as:
- How much do I need to save?
- When can I afford to retire?
- How much can I spend in retirement?
- How much risk can I afford to take?
- How much risk should I take?
- Which accounts should I draw on first?
- When should I claim my CPP and OAS?
- Which pension option should I choose?
- How should I use my holding company assets?
- How can I minimize taxes in retirement?
- Other “what if” scenarios
If you don’t know where you’re going, any road will take you there.
Common tools used in retirement planning, include:
RRSP
A Registered Retirement Savings Plan (RRSP) allows you to contribute a portion of your income toward retirement on a tax-deferred basis. Contributions are tax-deductible and any gains within the account accumulate on a tax-deferred basis until withdrawn.
IPP
A Individual Pension Plan (IPP) is a like a super-sized RRSP for incorporated business owners. The IPP allows business owners to create their very own defined benefit pension plan, providing higher levels of tax-deferred savings and enhanced retirement security when compared to an RRSP.
TFSA
A Tax-Free Savings Account (TFSA) allows Canadian residents over the age of 18 to invest up to $6,500 per year on a tax-free basis. Contributions are not tax-deductible, however, any gains or withdrawals are considered tax-free. Contribution room is cumulative from year to year if unused.
Annuities
Annuities provide guaranteed income either for a stipulated timeframe or for life. Annuities are like a pension promise that can be purchased through a life insurance company. Due to their tax-efficiency and guaranteed nature, annuities can play a pivotal role in retirement planning.
