Retirement
Investment | Family | Retirement | Hardship
It takes more than just retirement planning to preserve and enhance your wealth. It's also about maximizing and protecting it, and helping ensure you'll be able to pass it on to future generations.
Your Retirement Checklist:
Retirement Plan
Now that you are looking to retire, it is important to build a monthly budget based on your projected income.
Godfrey Wealth Management Inc. can help you devise a plan that will help you to live within your means and protect your lifestyle for years to come.
Things to consider
- When do you want to retire?
- Do you have a household budget? If so, what is your current total monthly budget?
- How much have you invested or saved over the years?
Mutual Funds*
A mutual fund is a type of investment fund. An investment fund is a collection of investments, such as stocks, bonds or other funds. Unlike most other types of investment funds, mutual funds are “open-ended,” which means as more people invest, the fund issues new units or shares. A mutual fund typically focuses on specific types of investments. For example, a fund may invest mainly in government bonds, stocks from large companies or stocks from certain countries. Some funds may invest in a mix of stocks and bonds, or other mutual funds.
Through Quadrus Investment Services Ltd., we have access to thousands of mutual funds, including the Quadrus Group of Funds - an exclusive mutual fund family that offers clients a multi-managed, multi-style approach by some of the world's leading investment managers.
* Disclaimer
Make your investment decisions wisely. Important information about mutual funds is found in the funds' simplified prospectus. You can obtain a copy of this from your investment representative. Please read this carefully before investing. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Unit values and investment returns will fluctuate.
Things to consider
- How much and how often do you want to invest?
- What is your risk profile? Are you a high, medium or low risk person?
- Have you done any research on the type of mutual fund that interests you?
Segregated Funds Policies
Segregated fund policies offer a long-term investment with death benefit and maturity guarantees. These guarantees are options within an insurance policy, additional benefits include assets bypassing the estate and potential probate fees, resulting in your assets passing directly to your named beneficiaries.
Things to consider
- Who is/are your beneficiaries?
- What amount do you want to invest for them?
- What assets do you have that you intend to leave your beneficiaries?
Annuities
Annuities allow you to contribute to an annuity fund where your investment grows and collects interest. You then select a future point in time where a stream of payments are made back to you from your investment
Things to consider
- How much and how often do you want to contribute?
- Do you already have annuities?
- How much additional monthly income do you require above your other investments or pensions?
RRIFs (Registered Retirement Income Funds) & LIF (Life Income Funds)
You have saved for your retirement and now you need an income. Godfrey Wealth Management Inc. provides the options you need for your retirement lifestyle. Since your RRSPs need to be closed out in the year you turn 71 (and the income begin the following year) you may choose to move the funds to a RRIF or registered annuity.
The RRIF pays out pre-determined minimum payment each year, and since there is no maximum, you can withdraw as much as you need annually. Withdrawals from a RRIF are taxable and any amount over the minimum amount are subject to withholding taxes imposed by Canada Revenue Agency (CRA).
Life Income Funds (LIFs) are available in all provinces except Prince Edward Island and Saskatchewan. Life Income Funds are tax-deferred plans that pay out your registered pension plan, Locked-In RRSP or Locked-In Retirement Account assets over a number of years. With a LIF, you control your investment options but payments are determined by a government formula. In most provinces, you must buy a life annuity with the assets remaining in the LIF by the end of the year in which you reach age 80. The Canada Revenue Agency legislates the minimum annual withdrawal limit. The maximum annual withdrawal limit is determined by the applicable pension legislation. Unlike a RRIF, a LIF cannot be commuted or cashed-out under most circumstances. Income payments may be paid monthly, quarterly, semi-annually or annually. LIFs offer limited flexibility in your stream of income. You may opt for a minimum payment schedule, a maximum payment schedule, or a level stream of payments providing they do not exceed the maximum limit. With a LIF, you retain control of your savings and remain actively involved in all investment decisions. All LIF payments are taxed as income in the year in which they are received. As with the RRIF, withdrawals from a LIF over the minimum amount are subject to withholding taxes imposed by Canada Revenue Agency (CRA).
Things to consider
- How much do you have invested in RRSPs?
- Do you have an employer sponsored savings fund?
- How much monthly income do you need above your available pensions?
TFSA (Tax-Free Savings Account)
The TFSA is a flexible and registered investment account which allows you to earn investment income (interest, dividends, capital gains, etc) tax-free.
Unused TFSA contribution room is carried forward and accumulates year over year.
Things to consider
- What are your saving goals?
- How much money do you have to invest in your monthly budget?
- How much have you already contributed to a TFSA?
Other Options
Specialized Investment Solutions
All investors have unique needs, but some who have already accumulated wealth and are searching for ways to preserve it, for instance, might require specialized solutions to suit their situation.
Guaranteed Interest Options and Payout Annuities
To help you reach your financial security goals, we offer a wide range of products and services, including secure options such as guaranteed interest options and payout annuities. Guaranteed interest options protect your principal. Payout annuities guarantee your income.
Registered Education Savings Plans (RESPs)
Consider saving for your child or grandchild's education with an RESP. When you contribute to this type of registered plan, the federal government provides a grant to help you reach your goals faster.