Retirement

Retirement & Estate Planning, Greenfeld Financial Management, Delta, BC

At Greenfeld Financial, our team works closely with you to ensure your retirement future is secure.
We can assist you with:

  • When to convert an RRSP to a Retirement Income Fund (RIF)    

  • When to take OAP & CPP              
  • Group Pension Planning

  • Portfolio adjustments for income generation             

Want to get started on a Financial Plan? Click here to download our Financial Planning Fact Finder!

Registered Retired Savings Plan (RRSP)

What is it?
A Registered Retirement Savings Plan (RRSP) is a type of investment account that allows you to build and grow your wealth for retirement in a tax-advantaged way.

Who is it for?
Canadians who have employment income and file a tax return. Either they (or their guardian) may set up and contribute to an RRSP. 

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RRSP Advantages:

  • With an RRSP, you can deduct the amounts you contribute to your (or your spouse’s) plan from your taxable income, reducing your taxes for the year. Plus, no tax is paid on the investment income, dividends or capital gains generated by holdings within your RRSP.

  • The earlier you start saving and the longer you contribute to your RRSP, the more your money is likely to grow. For example, if you were to contribute $1000 annually from 18 to 27, the value at 65 would be $291,402, compared to $529,343 if you contributed to age 65. (Based on an 8% annual return.*

  • You can withdraw up to $35,000 tax-free through the Home Buyers’ Plan (HBP) for a down payment on your first home. You can also withdraw up to $10,000 tax-free per year through the Lifelong Learning Plan to finance full-time training or education for you, your spouse or common-law partner. In both cases, the borrowed funds must be repaid to your RRSP account within a given period of time.

Registered Disability Savings Plan (RDSP)

What is it?
An RDSP is a savings plan that provides people with disabilities an easy and effective way to save and invest for their long-term financial security.
 

Who is it for?
Anybody who can claim the Disability Tax Credit may be eligible.

RDSPs Have Three Distinct Advantages:

  • Earnings grow tax-free until the money is taken out of the plan. This means that RDSP contributions can grow faster, allowing for accelerated growth in the plan.

  • RDSPs may be eligible to receive federal government incentives of up to $3500 annually and a lifetime amount of $70,000 in grants. Annual amounts of $1000 and a lifetime maximum of $20,000 in bonds may also be available.

  • Income payments from an RDSP do not affect Old Age Security payments, GIS or CPP. In most provinces and territories, you will still quality for existing provincial social assistance programs if you have an RDSP.

For further information on RDSPs, click here

Qualified Recognized Overseas Pensions (QROPS)

What is it?
The Qualified Recognized Overseas Pension Scheme (QROPS) allows eligible expats to transfer qualifying pensions into a Canadian RRSP.
 

Who is it for?
QROPS is appropriate for persons over the age of 55 who hold a qualifying U.K. pension and intend to live outside of the U.K. for more than five years.

How it works

QROPS has a number of potential benefits, including:
• Tax efficiency
• Favourable inheritance transfers
• Reduced currency-related investment volatility
• Access to a broader range of investments

 

Transferring your U.K. pension is relatively straightforward. The investor must supply various forms to both the UK and the Canadian pension administrator.

 

For more detailed info, click here.

 
 

*The above examples assume an 8% yearly rate of return and a $1,000 contribution at the start of each year. Investment growth and final results do not reflect transaction-related taxes, fees and expenses. These investment assumptions are provided as an example only. In no way do they guarantee the yield of an investment. The actual yearly rate of return and the investment value may vary based on market conditions.