Most individuals in their mid to late 50s concern themselves with providing retirement income during their lifetime. And with a third of their lives still left to live, many are beginning to realize their needs are different as they think through the various stages of life they will transition.
The purpose of this library is to give you an opportunity to understand what is available from both government sources and through the use of tax effective pension legislation geared towards helping individuals create a guaranteed retirement income that they cannot outlive.
We start by introducing our Three Retirements Seminar on the Internet (Webinar) that addresses each phase of the transition most individuals go through. It is based upon the observation that most individuals do not retire yet want to have more time away from their business to do those other things in their lives yet without creating financial risk for themselves.
Please feel free to review our presentation: "The Three Retirements" - an outline of the lifestyle considerations in planning for retirement.
Where will your retirement income come from?
All of us have different visions of what our retirement will be like. Some people dream of having the flexibility to spend more time with friends and family, to travel and to participate in recreational activities. No matter what your vision for retirement is, you need to plan now for your retirement income.
 The basics of planning one’s retirement is understanding Canada’s Retirement
Income System [519 KB]
What is Adobe PDF?
top
Government Pensions
Canada Pension Plan (CPP) Information
Old Age Security (OAS) Information
top
Registered Retirement Savings Plans (RRSP)
A registered retirement savings plan (RRSP) is a retirement plan that is registered and that you or your spouse or common-law partner establish and contribute to. Deductible RRSP contributions can be used to reduce your tax. Any income you earn in the RRSP is usually exempt from tax for the time the funds remain in the plan. However, you generally have to pay tax when you cash in or receive payments from the plan.
Full information is contained in the following guide:
RRSP
Guide [303
KB]
What is Adobe PDF?
top
Tax Free Savings Accounts
The new Tax-Free Savings Account (TFSA) is a flexible, registered general-purpose savings vehicle that allows Canadians to earn tax-free investment income to more easily meet lifetime savings needs. The TFSA complements existing registered savings plans like the Registered Retirement Savings Plans (RRSP) and the Registered Education Savings Plans (RESP).
- Canadian residents age 18 or older can contribute up to $5,000 annually to a TFSA.
- Investment income earned in a TFSA is tax-free.
- Withdrawals from a TFSA are tax-free.
- Unused TFSA contribution room is carried forward and accumulates into future years.
- Full amount of withdrawals can be put back into the TFSA in future years.
- Choose from a wide range of investments options such as mutual funds, Guaranteed Investment Certificates (GICs) and bonds.
- Contributions are not tax-deductible.
- Neither income earned within a TFSA nor withdrawals from it affect eligibility for federal income-tested benefits and credits, such as Old Age Security, the Guaranteed Income Supplement, and the Canada Child Tax Benefit.
- Funds can be given to a spouse or common-law partner for them to invest in their TFSA.
- TFSA assets can generally be transferred to a spouse or common-law partner upon death.
Full information is contained in the following guide:
TFSA Guide [349 KB]
What is Adobe PDF?
top
Pension Income Splitting
Beginning with 2007 income tax returns, Canadian residents will generally be able to allocate up to one-half of their income that qualifies for the existing pension income tax credit to their resident spouse (or common-law partner) for income tax purposes.
The amount allocated is deducted in determining the net income of the person who actually received the pension income, and it is included in computing the net income of the spouse or common-law partner. Pension splitting affects the calculation of income and tax payable for both persons, so they must both agree to the allocation in their tax returns for the year in question.
Full information can be found at: http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/pnsn-splt/menu-eng.html
top
Home Buyers Plan ( HBP)
You can withdraw from RRSPs to buy or build a home
for yourself or for someone who is related to you and
is disabled. The Home Buyers' Plan (HBP) allows you to
withdraw up to $20,000 from RRSPs to buy or build a qualifying
home for yourself (as a first-time home buyer) or
for someone who is related to you and is disabled. You
may still be considered a first-time home buyer if you
own a rental property or if you have not recently owned
a home.
Only the individual who is entitled to receive payments
from the RRSP (the annuitant)
can withdraw funds from an RRSP. You can make withdrawals
from more than one RRSP as long as you are the annuitant
(plan owner) of each RRSP.
Your RRSP issuer will not withhold tax on these amounts.
Generally, you will not be allowed to withdraw funds
from a locked-in
RRSP.
You do not have to include eligible withdrawals in
your income when you withdraw funds from your RRSP under
the HBP; however, you have to repay
the amounts over a 15-year period.
Full details are available through:
Home
Buyers Guide [292 KB]
What is Adobe PDF?
top
Life Long Learning Plan (LLP)
You can withdraw from RRSPs to finance training or
education for you or your spouse or common-law partner.
The Lifelong Learning Plan (LLP) allows you to withdraw
amounts from RRSPs to finance training or education for
you or your spouse or common-law
partner. You cannot use the RRSP funds to finance
a child's education, such as your child or the child
of your spouse or common-law partner.
You can make withdrawals from more than one RRSP as
long as you are the annuitant (plan owner) of each RRSP.
Your RRSP issuer will not withhold tax on these amounts.
Although the maximum amount that you can withdraw is
$20,000, there is an annual limit of $10,000. There is
no limit on the number of times you can participate in
the plan over your lifetime. Starting the year after
you bring your balance to zero, you can participate in
the LLP again and withdraw up to $20,000 over a new qualifying
period. Generally, you will not be allowed to withdraw
funds from locked-in
RRSPs.
You do not have to include eligible withdrawals in
your income when you withdraw funds from your RRSP under
the LLP; however, you must repay
the amounts over a specified period of several years.
Conditions
Certain conditions must
be met before you can withdraw funds from your RRSP under
the LLP.Full details on the plan are available through
the following PDF:
Life
Long Learning [262
KB]
What is Adobe PDF?
top
Retirement & Investing
Government Links
Looking for understandable, easy-to-use information on
investing and financial matters? You're at the right site!
http://www.getsmarteraboutmoney.ca/en/Pages/default.aspx
The Investor Education Fund provides objective information
that helps you grow your financial know-how and protect
your money. As a non-profit established by the Ontario
Securities Commission, the investment industry watchdog,
your best interest is our bottom line.
Third Party Independent Investment Product Analysis
http://www.morningstar.ca
Investors around the world know that they can count on
Morningstar for honest and unbiased analysis of funds and
investing trends in their region. Morningstar data appears
in print, software and Internet products, data feeds and
media publications all over the globe. Morningstar currently
boasts operations in 17 countries and employs over 800
people worldwide.
Morningstar Canada is Canada's leading investment fund
research firm. It markets the two most popular mutual fund
software products, PALTrak and BellCharts, and operates
the Morningstar.ca web site. In addition, Morningstar Canada
provides analysis and consulting services for investment
management, fund performance evaluation and pension plan
governance.
top
Estate Planning
For most individuals the goal of estate planning is
to arrange their personal affairs in the most
efficient and advantageous manner possible.
Estate planning consultants use vehicles like tax-planned
trusts and wills to accomplish a client’s personal
objectives while minimizing adverse tax consequences, including
the reduction of probate taxes.
Estate Planning Consultants are experienced in the complex
issues relating to business succession planning and ongoing
wealth transfer. In this way, clients are better prepared
to deal with aging, illness, incapacity and death.
The following Publications are a good start to thinking
out the issues:
Estate
Planning Questionnaire [206 KB]
Estate
Planning Disabled [3118 KB]
Some
Estate Planning Opportunities [1354 KB]
What is Adobe PDF?
top
Guaranteed Annual Income System (GAINS)
The Guaranteed Annual Income System (GAINS) ensures a guaranteed minimum income for Ontario senior citizens by providing monthly payments to qualifying pensioners.
Ontario Ministry of Finance: Guaranteed Annual Income System
Finding Seniors' Health Care Resources
Becoming a senior means different things to different people. Some seniors will maintain the healthy and active lifestyle they've always had. Some may find themselves needing access to new programs and services, while still others or their families may require levels of care to ensure their needs are addressed in a caring and compassionate way.
The resources on this Web site have been compiled to help seniors and their families easily find health care information and other services according to their individual needs. You will find information and services that are available from government and community sources and contact details for various organizations:
Government of Ontario: Finding Seniors' Health Care Resources
top
Credentials
Our services are provided through our Practice Leader Lisa Calleja CFP.
Lisa is an accomplished Financial Planning, Retirement Planning Consultant and Educator with many years of professional experience in the fee only financial planning industry.
She has been involved in the preparation of over 2500 financial plans including providing each client detailed written reports outlining potential financial outcomes.
Lisa is CFP licensed in good standing with the Financial Planners Standards Council and also an Associate Member of The Institute of Advanced Financial Planners (I.A.F.P) working towards the prestigious R.F.P. - Registered Financial Planner designation.
www.fpsc.ca
www.iafp.ca top
|
