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Frequently Asked Questions


Q.   What is a Group RRSP?

A.   A Group RRSP is simply an effective way to bundle retirement plans belonging to several individuals with a common employer who is making contributions by way of at source payroll deductions.


Q.   How much can I invest in an RRSP?

A.   The Combined total of all of yourcontributions to Registered Retirement Savings Plans (RRSP’s) can be as much as 18% of your previous year’s income, less any pension adjustment, up to a maximum of $19,000 for year 2007, $20,000 for year 2008 and $21,000 for year 2009.


Q.   How much does it cost me to set up a Group RRSP?

A.  There are no account set-up fees or Administration fees associated with a Group RRSP.


Q.   Is there a minimum contribution?

A.   The minimum contribution is $50 per month.


Q.   How do I sign up for the program?

A.   You will receive details from your Group Plan Advisor, but once you have filled in the necessary forms for opening aGroup RRSP Account, your paperwork requirement are finished.   


Q.  How will I know in which funds to invest

A.  Your Group Plan Financial Advisor will meet with you to set up a plan that is tailored to meet your requirement goals. As mentioned, you can change your investment choices if your circumstances change.


Q.   What if I change my mind or my investment needs change? 

A.   Contact someone at Business Affairs or Tormon Financial or the Plan Administrator if you decide you want to change your contribution amount, stop contributions for a period of time or transfer contributions into or out of the plan. 


Q.   How much will I need for Retirement?

A.   That’s a great question!! The amountvaries with each individual, but a good rule of thumb is that you will need 75% of your current pre-tax income to live comfortably in retirement.


Q.  How can I maximize my savings for my spouse and I in our retirement? 

A.   A useful strategy for couples is for the higher Income earner to contribute to a Spousal RRSP account.In this way, the higher income earner gets the tax deduction as thecontributor to the RRSP, and the lower earner will claim the income at a lower tax rate when withdrawals are made from the plan in retirement. This is one of the only income-splitting strategies still available to averageCanadians.


Q.   How many other ways can I reduce taxes? 

A.   Lend your spouse money for their investments and have the higher-earner spouse pay most house-hold bills. Employ your spouse in your business.Guarantee a loan from a financial Institution Lend funds to your spouse’s Business.

Commissions, trailing commissions, management fees, and expenses all may be associated with mutual fund investments. Please read the simplified prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.

  For more information, contact carmen@tormonfinancial.ca.