Frequently Asked Questions
RRSP's
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.
