RESP
Investment Loan
Investment Loan is a wealth-building strategy that allows your money to work harder. Instead of adding gradually to an investment
account over the course of a long-term investment plan, Investment Loan lending allows clients to borrow and invest a substantial
lump sum right away, which can compound and grow over the entire investment period. Investors make interest payments on the loan which are
tax deductible in many cases. Investment loan can be effective for clients with long-term investment goals,
adequate financial sophistication and resources, and the capacity to accept the risks inherent in borrowing to invest.
Contact us, we believe we can cater to your needs in an effective and ethical manner.
RRSP
RRSP stands for registered retirement savings plan. It is one of the registered savings plans set up under the Income Tax Act (ITA 146(1)) and registered with the Canada Revenue Agency. Legally, RRSPs are known as trusts or trustees because they hold assets on behalf of investors.
RRSPs are designed to help you save for your retirement. They also provide two key benefits:
An Immediate Reduction of taxable Income: you can deduct contributions to an RRSP from your total income.
Tax-Sheltered Growth: you do not pay taxes on contributions and earnings, so you have more to invest and your investments grow faster.
RRIF
The Registered Retirement Income Fund (RRIF) is the best retirement income option for most Canadians since it can be tailored to meet their needs. A RRIF is essentially a mirror of an RRSP. It can hold the same types of investments and provide the same tax-sheltered growth. Similar to an RRSP, you control the investment decisions.
However, RRIFs are designed to distribute assets in the form of retirement income. Contributions to a RRIF are not allowed.
Once you transfer your RRSP to a RRIF, you must withdraw a minimum amount each year, specified by a formula based on your age. Since there is no maximum withdrawal limit, you are free to withdraw any amount you wish. However, you include your RRIF payments as income for tax purposes.
While there is no minimum age for starting a RRIF, you can postpone establishing one until you are 69. In the initial year of a RRIF, you are not required to withdraw a payment. You may delay the withdrawal until the following year.
Qualifying vs. non-qualifying RRIFs
It is important to note the difference between qualifying and non-qualifying RRIFs. To be a qualifying RRIF, it must have been set up in 1992 or earlier, and contain no assets transferred or contributed to it at any time after the end of 1992 except from another qualifying RRIF.
A RRIF established after 1992 can be classified as a qualifying RRIF if assets are transferred from another qualifying RRIF.
All other RRIFs are non-qualifying RRIFs.
Qualifying and non-qualifying RRIFs differ in the rules regarding their minimum withdrawal. From age 71 to 78, withdrawals from a qualifying RRIF are lower than those from a non-qualifying RRIF. For all other ages, the withdrawals are the same.
Estate planning
Estate planning is all about preserving what you have worked so hard at acquiring, your wealth. It is often a complicated process and even intimidating, which is why we approach it in a step by step manner. We ensure that you are involved and understand the benefits of our proposed solutions.
The first step is to understand how much, if any Estate you will likely be leaving. From there we can work with you to both minimize the effect of taxes and maximize the size of your Estate.
After all, once all of your expenses are covered off for the remainder of your life, the residual must be directed somewhere. We can help ensure that the largest portion passes to your family or favoured charitable organizations according to your wishes and the least amount goes to taxes.
We can help you target an Estate that is commensurate with your wishes. We can control risk and apply strategies that allow for significant capital appreciation and tax efficiency with significantly less risk than most mainstream strategies.
Contact us, we believe we can cater to your needs in an effective and ethical manner.
