IPPs and Group RRSPs offer flexible pension options

Plans to keep both bosses and workers happy

There are flexible alternatives to conventional pension plans for both employers and employees. For employers, offering a Group Registered Retirement Savings Plan (RRSP) as a benefit can be more attractive to potential employees than a registered pension plan. And for business owners, executives, and professionals, an Individual Pension Plan (IPP) can offer enhanced retirement savings over and above an RRSP. READ MORE

Six rules for RRSP success

Key investment principles

This year, the RRSP contribution deadline for getting a 2018 tax deduction is March 1. You still have four weeks to make a contribution, and that’s plenty of time to discuss the best strategy with your financial advisor. To make sure you get the most benefit from your RRSP, there are six key rules that apply all the time, and that I advise my clients follow. READ MORE

Is $1 million enough to retire on?

Let’s say you’ve accumulated a nest egg of $1 million at age 65, through pension plans, perhaps a significant RRSP, TFSA contributions, some inheritances, and possibly some money left over from downsizing your home. You’re ready to retire, and you have to decide what to do with it to make it last through retirement. Here’s what you need to know. READ MORE

How to retire with $1 million

Reach that magic number even if you start at 40

It’s sometimes said that you need at least a $1 million retirement fund to maintain the kind of lifestyle you want after age 65. But starting at, say, age 40, can that even be done? The good news is that it is possible to build a million-dollar retirement fund. But there five important principles you have to follow. READ MORE

LIRAs are truly locked up

These accounts are designed for pension income

When you leave an employer where you had a pension plan, the funds in the plan are transferred to a Locked-In Retirement Account. At times they may also be transferred into a locked-in RRSP. Essentially, these are a special type of registered retirement fund designed to work like a pension plan until you retire. In other words, the plan can hold stocks, bonds, mutual funds, exchange-traded funds, and generally all the qualified investments that can go into a regular RRSP or pension plan. The difference is that you can neither contribute more money nor withdraw funds from the plan. The principle is that these are your retirement funds, and they’ll be locked in until you actually retire, at which point you must choose from a number of maturity options. READ MORE

Businesses increasingly use DPSPs and Group RRSP combo benefits

Employer contributions and tax savings can really add up

Employers often use group benefits as a way to attract and retain their best employees. The most popular group benefits typically offer the most flexibility for employees and the lowest costs for employers. That’s why employers are increasingly turning to the flexibility and low costs characterized by Deferred Profit Sharing Plans (DPSPs) and Group Registered Retirement Savings Plans (RRSPs). READ MORE

Individual Pension Plans supercharge retirement savings for high net worth professionals

IPPs must follow pension rules

If you are a business owner or executive, or an incorporated professional (physician, dentist, lawyer, accountant, and so on), and you’re looking to enhance your retirement savings, you might think about setting up an Individual Pension Plan (IPP). READ MORE

RRSP contribution rules

Still the most effective retirement savings plan there is

The Registered Retirement Savings Plan (RRSP) is still the most effective retirement saving and tax deferral vehicle available to Canadians. Because it’s such a powerful savings tool, it makes sense for everyone to open a plan a contribute to it regularly. This year, the deadline for RRSP contributions that will be eligible for a 2017 tax deduction is March 1, 2018. READ MORE

CCPCs under attack, but IPPs remain untouched

Individual Pension Plans a tax-efficient retirement savings tool

Given the current effort by the federal government to clamp down on some of the income “splitting and sprinkling” tax benefits of Canadian-Controlled Private Corporations (CCPCs), there’s definitely a lot of uncertainty among executives, business owners, and professionals about the tax benefits of incorporation. But one item remains untouched (so far): the Individual Pension Plan (IPP) is still an excellent way to considerably boost your retirement nest-egg if you own a CCPC. READ MORE

Annuities as an RRSP maturity option

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Is an annuity right for you?

As a growing number of Baby Boomers retire, the question of what to do with maturing Registered Retirement Savings Plans is becoming more pressing. RRSPs must be shut down by the end of the year in which you turn 69, and the proceeds either taken into income in a lump sum, rolled over into Registered Retirement Income Fund (RRIF), or used to purchase an annuity. Often, retirees will opt for some combination of these. While RRIFs are reasonably well understood, annuities are still a bit of a mystery for many. READ MORE

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