RRSP, TFSA AND OTHER SAVINGS PLANS

 

Make your savings grow

A retirement savings plan is key to preparing for a comfortable retirement, much like how a Tax-Free Savings Account (TFSA) helps you to save for a holiday or to buy a house. All of these savings vehicles, with the exception of the non-registered savings plan, help you to grow your assets tax-free.

Our IAG Savings and Retirement Plan offers a wide array of options that make managing your retirement savings portfolio easy, including segregated funds that protect your investments from market fluctuations. You also benefit from an integrated savings plan that takes your current and future needs into account.

Check out the various savings plans available and see which one is right for you.

 

RRSP – Registered Retirement Savings Plan

This plan helps you to save money for your retirement. Anyone under 71 years old with employment income is eligible.
An RRSP offers multiple tax advantages: not only can you invest money tax-free, you can also deduct all contributions from your taxable income to become eligible for a tax refund.

TFSA – Tax-Free Savings Account

Available to anyone 18 years or older, the TFSA is a unique savings account that allows you to grow your savings on a tax-free basis for a personal project. An extremely flexible savings vehicle, you may withdraw funds whenever you want without a tax penalty.

LIRA - Locked-In Retirement Account

This plan is ideal if you have changed employers and wish to transfer funds from your group pension plan to an individual plan so as to have more control over your investments. 

Non-Registered Savings Plan

This plan works like a personal savings account. It allows you to save money for a project or to grow your retirement income if you have reached your maximum RRSP and TFSA contribution limits. You get a higher return than on your bank account and have access to our different investment funds.

 

RRIF, LIF and Annuities

Turn your retirement dreams into reality

If you are 15 years or less away from retirement, now is the time to meet with an advisor and take stock of your financial situation. Together, you will establish the total amount of your retirement income sources, which will primarily consist of:

• Government plan benefits
• Company pension plan payments
• Personal savings

By comparing your forecasted income with your estimated future needs, which should equal approximately 70% of your salary, you can determine if you are on the right track. If you are, keep going! On the other hand, if you see that your savings won’t be enough, it would be wise to discuss your savings options with an advisor.

Retirement income

Over the course of your retirement, you will convert your registered savings plan into income funds or annuities so that you may draw upon your funds as required. These options, which vary according to the type of plan that you own, allow you to regularly withdraw money while continuing to accumulate tax-free savings from investment income.

RRIF – Registered Retirement Income Fund

An RRIF acts as an extension of a registered retirement savings plan (RRSP). It allows you to utilize the savings you have accumulated during your working life. You have until December 31 of the year you turn 71 years of age to convert the amounts invested in your RRSP into an RRIF.

LIF – Life Income Fund

If your savings have been placed in a locked-in retirement account (LIRA), a life income fund (LIF) will allow you to periodically withdraw the funds you require to live comfortably.

Annuities (Guaranteed Income)

Annuities are ideal if you would like to convert a portion of your savings into a fixed and guaranteed income that provides you with regular payments. There are two types of annuities: life and certain. The FORLIFE Series of the IAG Savings and Retirement Plan also offers a guaranteed lifetime income.

 

RESP – REGISTERED EDUCATION SAVINGS PLAN

Save for your children’s education 
An RESP is to education what an RRSP is to retirement: it allows you to build up tax-deferred savings to put toward your child’s post-secondary studies. With an RESP, you give the most precious gift there is to your child, grandchild, niece or nephew: a promising future.

A practical plan that allows you to:
• Plan for your children’s education.
• Grow your savings tax-free up to a maximum of $50,000.
• Benefit from a federal government grant equivalent to 20% of your annual contribution up to $500 per year, deposited into your RESP.
• Receive a provincial government grant if you live in Quebec. This program offers a refundable tax credit equivalent to 10% of accrued savings, up to a maximum of $250 per year.

A flexible plan
• If your child does not pursue higher education, you can:
• Designate another child or make a donation.
• Withdraw your original contributions tax-free.
• Transfer your investment income to your RRSP under certain conditions.

What is the best way take advantage of the government grants?
• Taking out an RESP loan is a brilliant way to make your savings grow.

Why choose an RESP with us?
We offer two advantageous education savings products:
• My Education, which gives you access to a wide range of investment funds (segregated funds and guaranteed interest funds)
• Diploma, which offers you an education bonus of up to 15% of your RESP contributions upon fulfillment of your monthly deposit commitment

 

INVESTMENT FUNDS

Whether you are looking for performance or security, we offer a wide range of investment options to suit your risk tolerance and investment preferences.

To help you understand the investment options available to you, please refer to the brief overview of investment vehicle categories below. A financial advisor can explain each in detail and help you to choose the right investments to reach your savings goals.

Segregated Funds

Segregated funds are similar to mutual funds, however what sets them apart is the guarantee they offer of investment protection against possible market downturns. Distributed exclusively by insurance companies, segregated funds are comprised of stocks, bonds or market securities and are managed by experts.

Advantages and characteristics

Allow you to take advantage of rising markets while offering guarantees against possible downturns at maturity and in the case of death.
Managed by experienced portfolio managers and include an asset mix that suits all investor profiles.
Protect your savings from potential creditors depending on your province of residence.
Offer quick settlement in the case of death thanks to the designation of a beneficiary.
Are part of the IAG Savings and Retirement Plan and may be purchased as an RRSP, TFSA, LIRA, RRIF, LIF or a non-registered savings plan.
Guaranteed Interest Funds
This type of secure investment grows your money at a guaranteed rate of interest for a fixed period. It is ideal for investors looking for capital security.

Daily Interest Funds

These funds are ideal for short-term investment in order to accumulate money to transfer into another type of investment. You accumulate interest on a daily basis.

Mutual Funds

These funds are similar to segregated funds, however, they are more suited to investors with long-term investment objectives who don’t mind taking some risk.