Presentation on theme: "House of Horvath Group Registered Retirement Savings Plan (RRSP)"— Presentation transcript:
House of Horvath Group Registered Retirement Savings Plan (RRSP)
The objective of this meeting is: To provide you with tools and information so that you can “Get Serious” about your personal retirement plan
To meet this objective we will review: Four easy steps to managing your retirement journey –Step 1 - Envision your retirement –Step 2 - Calculate the cost –Step 3 - Select and monitor your investments –Step 4 - Managing your group RPP Ongoing services & support
Your retirement program Contributions made by you and your employer are defined Your retirement benefit will depend on: –Contributions made to the plan –Investment returns earned by contributions
Plan features What can you contribute? What does the company contribute? Transfer in? Can you withdraw from the plan? Eligibility?Immediate After 3 months continuous employment: employer match of 50% of your contribution (max 1.5%) Allowed From optional unmatched contributions only Up to CRA limits *Earnings are defined as gross earnings including overtime and bonuses.
Staggering statistic “Still, only 38% of Canadian workers, about 6.1 million, had company pension plans of any type as of 2011, according to Statistics Canada.” Source, Ross Marrowits, Canadian Press, Feb 2014
Set a goal Experts use the assumption that you will need to replace your pre-retirement income by 50 – 70% For example if you make $50,000 the year before you retire, you might need to be planning to replace your working income by 70% in retirement (or $35,000 per year). 9
Envision your retirement What I love Reading Movies Live plays/musicals What’s old is new Baseball Snorkelling Writing Hiking Bucket list Skydiving New York at Christmas Singing lessons My retirement
2. Calculate Where is your money going to come from?
The structure of Canada’s retirement system Universal income tested public benefits (Old Age Security 2014 average payout - $515/month) Pillar I Mandatory public workplace coverage (Canada Pension Plan & Quebec Pension Plan – 2014 average payout - $612/month) Pillar II Workplace and personal retirement savings plans and other personal registered plans. Pillar III Additional non registered savings (e.g., equity, bank deposits, brokerage accounts…etc.) Pillar IV 12
Choosing your investment path Before you choose an investment path, ask yourself: How much knowledge do I have about investing How much time am I willing to devote to: Creating a strategy Monitoring my investments Making required changes 14
Investment options available Cadence target date funds Asset allocation funds (market based) Portfolio target risk funds Asset allocation funds (market based) Individual investment funds A wide range of non-guaranteed investments (balanced funds, fixed income funds, equity funds) Cash & Equivalent funds Daily Interest Account (DIA) 5 year guaranteed accounts 15
What’s your risk tolerance? Sign in to www.grsaccess.com and launch the Plan your retirement tool Use your enrolment booklet or a stand-alone brochure OR Complete the Investment personality questionnaire.
Asset allocation funds Types available to you: Target date Target risk Benefits Experts choose A fund of funds
Selecting your own investment mix Fund selection tools: GRS Access –Investment personality questionnaire –Fund Review for historical rates of return –Fund Reports for fund details –Investment management fees ScoringYour investment personality 115 or lessConservative 116 - 145Moderate 146 - 170Balanced 171 - 190Advanced 191 +Aggressive * Always available on line at www.grsaccess.com
Sync your plan to your life Adjust your funds to your changing stages of life 20
For more information o WEB: GRS Access (www.grsaccess.com) o Fund Review for historical rates of return o Fund Reports for fund details o Investment management fees o 1-800: Great-West Life Access Line o 1-800-724-3402 o Investment and retirement specialists o Objective information and education
4. Complete Tools and resources to help you with the ongoing maintenance and management of your plan