Is an Individual Pension Plan right for you?

Based on a C.D. Howe Institute report that suggested one possible solution to the alleged retirement crisis was simply to go back to the half-century-plus RRSP and raise contribution limits for the (relatively) few affluent people who are forced to save in taxable accounts because they’ve maxed out on RRSP room.

If you’re at top executive or own your own business and are 40 years of age or older, there may be another way to get the benefits of RRSPs. The Individual Pension Plan or IPP is an employer-provided program that replaces RRSP savings by an employee, says Stephen Cheng, managing director of Vancouver-based Westcoast Actuaries Inc. To be eligible for an IPP, you need to receive pension-eligible T-4 employment income. Self-employment income, partnership income and dividend income are not pension-eligible, Cheng says. So if you own your own business, you’d have to pay yourself a regular salary that generates T-4 employment income.

See advantages and the whole article here: moneysense

From Jonathan Chevreau

Call our office at 1-800-665-7707.
Our Advisors are available for a complimentary review of your situation to help you determine if our Cost Recovery Programme, or any of our other proven financial strategies, are right for you.
Contact Us For A Review

 

The Best Strategies for Your RRSP and TFSA When Money’s Tight

Whether you have limited funds to invest or need to withdraw some hard cash, explore a tax-friendly solution.

If you have limited funds this RRSP season, and you can’t maximize both your RRSP and TFSA contributions, you likely will have to choose which plan is best for you this year. Both an RRSP and TFSA allow you to invest in variety of things, including GICs, mutual funds, bonds and equities, and both may allow you to effectively enjoy tax-free investment income while the funds remain in the plans. But there are two main distinguishing factors.

The first is the tax rate differential for RRSP contributions and withdrawals.

But the second, often neglected, differentiating factor between an RRSP and a TFSA is the additional flexibility that comes from a TFSA.

Read the full article here: Financial Post

From Jamie Golombek

Why your TFSA is just what your over-taxed RRIF needs

As RRSP season closes and many Canadians prepare for tax time, a CBC Marketplace investigation reveals that financial advisers at some of Canada’s top banks and firms are giving consumers inaccurate, misleading and inappropriate advice.

Meanwhile, consumers face a complicated patchwork of regulatory bodies if they want to complain about bad investment advice, as some investor rights groups call for more robust consumer protection rules.

Read the full article here: Financialpost

From Fred Vettese.

canadian money

Investments – What Would October Be Without Some Market Volatility?

Well before we start running for the hills let’s look at where we have come from to see if we can crystal ball where we are going.

Investments Financial Planning

Investments – Financial Planning

Since the market last bottomed out in 2009, Canadian and U.S. Markets have rallied on an accumulated basis over 110% and 200% respectively. During that 5 year period of extraordinary growth, we have endured US political deadlock, the Greek default of 2010, Eurozone crisis in 2011 and now we have the conflicts in the Middle East, Russia acting as a bully and slowing economies in Russia and China.

Countering that is:

  1. Steady growth in the U.S. and record low jobless claims with falling prices (in the U.S. anyway) at the gas pumps.
  2. The investment funds we recommend continue to produce positive return in 2014 following their very strong 2013 returns.

So what does this mean?

In my opinion this is a normal and healthy correction necessary when markets tend to get ahead of themselves.

Our fund managers actually anticipated this event and recently moved to more defensive positions in their portfolios.

In other words – it is business as usual and we continue to be satisfied with your fund allocations and management.

Contact Us

Call us at 1-800-665-7707 for a complimentary review to see if any of our proven financial strategies will work for you. Please do not hesitate to contact Ron or myself if you have any questions or want to discuss your portfolio.