Retirement Plans & Income
Individual Retirement plans are to provide additional retirement income to current government sponsored benefits.
Individual Plans include but not limited to are Registered Retired Savings Plan (RRSP), Tax Free Savings Account (TFSA), Insured Retirement Plan (IRP).
Registered Retirement Savings Plan (RRSP)
A retirement savings plan where contributions are made to a tax-sheltered plan. The contributions grow with investment earnings.
The retirement benefit is a lump sum. The lump sum can be used to provide retirement income (RIF) or can be used to purchase a pension for the lifetime (lifetime annuity) or for a certain period of time (annuity certain)
Tax Free Savings Account (TFSA)
The 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.
Insured Retirement Plan (IRP)
A financial planning strategy that addresses the needs for insurance and supplementary retirement income.
Deposits are made into a permanent life / universal life insurance policy.
When supplementary retirement income is needed, the policy is assigned to to a financial institution as collateral for a line of credit against as the cash value of the policy. Funds borrowed against the line of credit is used as a retirement income supplement. On death, the insurance proceeds pay off the outstanding loan balance and the excess is paid to the named beneficiary, tax free with limited or no tax consequences.