Pillar 2
Personal, retirement and tax planning
Personal retirement planning
We’ll help you develop a tax-efficient retirement plan that allows you accumulate the assets you need for a comfortable retirement.
How much capital do you need for retirement?
We can help you develop strategies, starting with a Financial Plan. These would include financial tools such as RRSPs and Tax-Free Savings Accounts, just to name a few. A Financial Plan is a roadmap for your retirement – a set of directions to help you reach your destination. Contact us.
More capital is required if
- Retirement income needs are higher
- Pension sources are expected to be lower
- You start investing later in life
- You earn a low rate of return
- Your retirement income is not indexed to inflation
- You’re planning to retire early for a longer retirement
Less capital is required if
- Retirement income needs are lower
- Pension sources are expected to be higher
- You start investing earlier in life
- You earn a higher rate of return
- Your retirement income is protected against inflation
- You’re planning to retire later for a shorter retirement
Retirement readiness
Deciding when to retire can be a complex decision. Our financial advisors bring the expertise to help walk you through early retirement considerations – so you can learn more about your options.
We can help you develop strategies, starting with a Financial Plan. These would include financial tools such as RRSPs and Tax-Free Savings Accounts, just to name a few. A Financial Plan is a roadmap for your retirement – a set of directions to help you reach your destination. Contact us.
Early retirement considerations
If you are thinking of early retirement, consider these pros and cons.
The benefits of retiring earlier:
- Enjoy life while you are younger and healthier
- Eliminate job-related stress / safety concerns
- Spend more time with family and friends
- Have more time to discover new interests
- Explore new business opportunities or part-time work
The downside of retiring earlier:
- More years to spend money and less time for saving and asset growth
- Medical coverage benefits may end, leading to greater spending on health as you age
Financial planning considerations
No matter what stage you are at in your retirement planning, there are many factors to consider.
Debt management
- Current debt payments and future borrowing eligibility are important financial considerations.
Review asset allocation
- It’s important for retirees to maintain a healthy asset allocation to satisfy their income needs today and in the future, while keeping up with inflation.
!! Carefully review your anticipated income sources and expenses.
Review retirement package
- We’ll help you develop a tax-efficient retirement plan that allows you to accumulate the assets you need for a comfortable retirement.
Early CPP / QPP
- Those eligible for Canada Pension Plan / Quebec Pension Plan may start the benefit early, at a reduced rate.
Lifestyle
- Knowing how much money you need depends on the lifestyle you envision in your retirement.
Segregated funds
Grow your wealth while protecting your investment. Get started today.
What is a segregated fund?
A segregated fund is an investment product similar to a mutual fund, but is distributed exclusively by insurance companies.
Segregated funds provide protection against market downturns by insuring 75% to 100% of the amounts invested. For some clients, this guarantee can represent a major advantage, since it limits, or even eliminates, the risk of loss.
Our portfolios
Our portfolio of segregated funds is provided by IA Financial Group.
IA Financial Group has been ranked first in net segregated fund sales in Canada since 2016. This position has been achieved by applying the highest standard of evaluation, selection, and management of the fund lineup. In fact, in 2020, funds in our portfolios won the prestigious Refinitiv Lipper Fund Award.
Key benefits of segregated funds
A segregated fund contract makes it possible to designate a beneficiary and therefore avoid paying several fees.
Protection of capital at maturity or at death
- Upon maturity of the client contract or in the event of premature death, this protection ensures the recovery of 75% to 100% of the amounts invested, if the market value of the funds is lower.
Possibility of avoiding probate fees
- A segregated fund contract makes it possible to designate a beneficiary and therefore avoid paying several fees associated with estate settlement, including probate fees. Probate fees may vary according to your personal situation and province of residence.
More estate value
- Unlike mutual funds, the designation of a beneficiary in your segregated fund contract provides two significant advantages at death:
- Prompt payment of accumulated amounts: the guaranteed value at death is paid directly to your beneficiaries with no waiting for final settlement of the estate.
- Higher estate value: since the money paid at death is not part of the estate settlement, probate fees are excluded, thereby increasing the value you leave to your heirs.
Possible protection against creditors
- This can be an attractive advantage for entrepreneurs or professionals who want to limit the risk of losses during a difficult period, or in the event of bankruptcy.
Easier and faster tax return
- All tax calculations are made on the T3 slip issued to you, which facilitates your tax returns.
Further reading and resources
History clearly shows that the longer you work with an investment advisor, the better your results will be.
