Taking care of what's important to you and your loved ones.

Assuring growth and prosperity for you and your loved ones.

Employees are your biggest assets. Protect your business by protecting them.

Movings to Canada? This section provides you lot's of helpful information

  About us - Financial well being free reports contact us useful links terms
Assuring financial wellbeing for your and your loved ones - annual travel health medical insurance
 

Group RRSP

 

What is Group RRSP?

In a group RRSP, an employer arranges for employees to make contributions, as they wish, through a schedule of regular payroll deductions. The employee can decide the size of contribution per year and the employer will deduct an amount accordingly and submit it to the investment manager selected to administer the group account. The contribution is then deposited into the employee’s individual account and invested as specified. Also read Individual RRSP.

 
5 biggest advantages to the employer are as below:
 
# Free Benefit: The group RRSP is a free benefit that the employer can provide to their employees. With most mutual fund companies there is no set-up fee, no trustee fee and no termination fee.
# Employee Retention: Group benefits have always helped employers retain their important employees. If the employer contributes to the employee's RRSP, this goes a long way towards attracting and retaining employees.
# No Liability: One of the biggest advantages is the fact that the employer is not liable for guaranteeing a specific amount of income when an employee retires. The employer is also not obliged to meet the various conditions the government imposes on registered pension plan sponsors, such as the requirement to set up or maintain a pension committee.
# No Administration Required : The bulk of the administration is carried out by the fund company.
# Tax Deductible: Employer contributions are a deductible expense for the employer in the year in which they are made.
 
5 biggest advantages to the employee are as below:
 
# Low cost: Unlike many bank GICs or mutual funds, some Group RRSPs require only a minimum contribution of $25 per month. The more you save and the longer you can do so, the bigger your retirement income will be.
# Employer Contribution: With some group plans, the employer may choose to encourage their employees to contribute to the group RRSP by matching contributions by a certain percentage. If the employer matches your contributions by 5 or 10 percent it's like earning an additional 5 or ten percent on your investments. There are not too many good reasons not to get involved in a group plan when the employer does this.
# Immediate tax relief: A $25 contribution only costs you $15 off your net pay (assuming a 40% tax bracket) because you get your tax break when each contribution is made. Rather than waiting for a refund tax return at the end of the year you will immediately stop paying tax on the amount of their pay that is invested in the RRSP.
# Payroll deduction: Your contribution is deducted from your paycheque before you have a chance to spend it somewhere else. Many people walk into their bank just before the annual RRSP deadline to invest in their annual RRSP. This can create a cash strain, and it is often difficult to take advantage of your maximum investment limit when you are making a single, annual payment. A group RRSP creates an easy way to save, as it is often easier to have a small amount of money deducted from each pay cheques than it is to make a large payment once a year.
# Access to competitive investment options: Group RRSPs offer you investments from a variety of top managers. The fund management fees are usually much lower than what you would pay yourself, because you’re part of a larger group. This can work far better for people who are not investment savvy, as there is a professional working for them at a much lower cost. In contrast, many people who invest at the last minute do so at a financial institution they are familiar with, and they select an investment product based on convenience rather than fund performance and their specific investment profile.

Many Canadians find it difficult to save for their retirement. This is especially so when you have to first earn money, pay tax on it, then try to save. Many people also find it difficult to top up an RRSP at the end of the year or make RRSP loan payments. The group RRSP can be a godsend for investors who experience these problems.

If you do not have Group benefits plan in your company yet. Please feel free to get in touch with me for further details. I am sure you understand that, every plan can not be good plan for everyone. Being a Independent Broker, I do not need to force one single product on you. My solution will be based on best options available in the market based on your situation and needs.
 

Call today  today to set up an appointment or fill the form below if you have any questions or you want to get contacted

Contact Form *Required fields
*Name:
*Email:
*Telephone:
*Contact Reason:
Comments or Questions:
*How did you hear about us?
home email
Government Grants
Whole Life Insurance
Critical Illness Insurance
Mortgage
 
 
#

Independent Life Insurance Broker Canada | Financial Planner and Advisor Canada | Identity Theft Canada | Credit History Report Canada | RRSP Investment Strategies Canada | Tax Planning Strategies and Tips | Canada Mortgage Planning Specialist | Financial Planning Calculator Canada | Financial Planning Glossary Of Terms | Personal Insurance Company Mississauga | Individual Insurance Coverage Plans | Life Insurance Quotes And Rates | Term Life Insurance Company | Critical Illness Coverage Mississauga | Critical Illness Statistics | Critical Illness Insurance For Children | Personal Disability Insurance Canada | Long Term Care Insurance Mississauga | Mortgage Term Life Insurance Canada | Final Expense Life Insurance | Dental Insurance Plan Mississauga | Travel Insurance Policy Canada | Holiday Visitors Insurance Canada | Travel Insurance Rates Quote Toronto Canada | Buy Cheap Annual Family Travel Insurance Montreal Canada | Single Multi Trip Best Travel Insurance Canada | Investment Planning Mississauga | Children Education Planning Canada | Registered Education Savings Plan (RESP) For Kids | Registered retirement savings plan (RRSP) Canada | Segregated Funds Canada | Investment Insurance Protection | Group Benefit Insurance Plans Canada | Immigration to Canada | TFSA Account | GMWB Canada | Guaranteed Retirement Income Plan | Financial Planning For Young People | Student Travel Plan | Student Medical Health Insurance Abroad Canada | Medical Insurance International College Students Canada | Sitemap | Privacy Policy | Legal Notice |



© 2008 FinancialWellbeing.ca All Rights Reserved.
#