why a group rrsp?
TRANSCRIPT
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Get together for a retirement that works
• Group Group RRSPsRRSPs
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This presentation is offered by
• Is provided by Investors Group Financial Services Inc., a financial services firm.
• This is a general source of information only. It is not intended to provide personalized tax, legal or investment advice, and is not intended as a solicitation to purchase securities. For more information on this topic or any other financial matter, please contact me, Turenne Joseph, consultant at Investors Group.
• Trademark(s) owned by IGM Financial Inc. and licensed to its subsidiary corporations.
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Turenne Joseph, Financial Security Advisor, Mutual Funds Representative Licensed in Québec, Ontario and British Columbia Investors Group Financial Services Inc., a financial services [email protected]
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Pay Yourself First
• What has first claim on the paycheque?▫Taxes?
▫Mortgage / rent?
▫Loan payment?
▫Other living expenses?
• Part of what’s earn should be to keep
• An easier way to build a retirement nest egg
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A Group RRSP?• Employer sponsored
• All it takes is five members
• Individual Accounts
• Flexible payroll deduction
• Tax-deferral benefits
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Benefits of joining a Group RRSP• No up-front costs
• Accelerate the plan when & how it’s wanted
• Instant tax reduction
• Investment control
• Professional management & advice
• Portability
• Income splitting
• Easy enrollment
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The power of tax-deferred compounding
$0
$100 000
$200 000
$300 000
$400 000
$500 000
$600 000
$700 000
10 Years 20 Years 30 Years 40 Years
$100/mth
$150/mth
$200/mth
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• The effect of contributing $100 to $200 per month to an RRSP over 10 to 40 years at an assumed pre-tax rate of return of 8%.
• For example, a $200 monthly contribution over 20 years into an RRSP would grow to $114,476.
The rate of return is used only to illustrate the effects of the compound growth rate and is not intended to reflect future values or returns on investment.
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More affordable than maybe assumed
•Contributions reduce taxes immediatelyFor example:
Your $300 RRSP contribution only reduces your paycheque by $210
You invest more!Assumed blended federal and provincial tax rate = 30% of gross pay less deductions and
credits. Note: tax withheld is different in each province. For reference, tax tables are available
from your payroll administrator or the local Canada Revenue Agency office.
Gross pay $4,000 Gross pay $4,000
RRSP contribution $300
Taxable income $3,700
30% income tax deducted ($1,200)
30% income tax deducted ($1,110)
Net after tax take home pay $2,800
Net after tax take home pay $2,590
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Group RRSP restricted access• A special plan type designed to restrict access
to the Group RRSP account.
Here’s what it means for each individual…• Assets are available for redemption or transfer
only when:□ You leave the Company□ You reach age 55□ You retire from the Company□ You die□ You become permanently disabled□ Your employer grants permission
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To start today…
• No set-up fees
• With as little as $50.00 per month
• Tax-deferred growth
• Quarterly investment statements
• Flexible
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My role as your Consultant
• To assist each individual in determining their current financial situation.
• To help each individual achieve their financial goals.
• To build a personalized plan for each individual and help them put it in action.
• To provide ongoing service to ensure each individual plan stays on track for their financial success.
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Get together for a retirement that works with a Group RRSP
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“Get together for a retirement that works” © Investors Group Inc. 2010 (03/2010) C3150
You have questions?
Maximize your possibilities and financial freedom…Maximize your possibilities and financial freedom…
Turenne JosephTel. Office : (514) 350-8750 ext. 8815Toll Free : 1 (866) 688-8750Fax : (514) 350-8752Email : [email protected]
Financial Security Advisor
Mutual Funds RepresentativeLicensed in Québec, Ontario and British Columbia
Investors Groups Financial Services, a Financial Services Firm.
2001 University, Suite 1620Montréal QC H3A 2A6