Retirement Planning
The Registered Retirement Savings Plan (RRSP)
was originally created to encourage Canadians to save for retirement; RRSPs are considered an essential part of financial planning. RRSPs allow contributions of up to 18% of earned income and are 100% tax deductible resulting in immediate savings on those funds contributed and all gains and income in the plan are tax deferred until retirement.
The plan is simple when structured properly. Capital preservation with a focus on earning consistent returns is the key to every successful retirement plan.
To the left, you can see the historical performance of the S&P/TSX Composite Index and Dow Jones Industrial Average. As you can see from the Compound Return Table (below) one does not need to be a superstar to retire like one. Prudent management and patience are paramount.
Your Self-Directed RRSP can take advantage of a broad range of qualified investments such as cash, government and corporate bonds, preferred and common stock, mutual funds and foreign securities. All of which can provide both diversification and the opportunity for excess returns.
Setting Up Your RRSP At Wolverton
Getting started or consolidating plans - let Wolverton help you at our cost. When you transfer your account of $25,000 or more, we’ll pay the transfer out fee charged by most financial institutions and waive all first year administration costs. Contact your Investment Advisor or e-mail RRSP@wolverton.ca and let us put our 95 plus years of experience to work for you.
How Much Can I Contribute?
For 2005, Canadian investors can contribute up to 18% of their earnings to a maximum of $18,000. However, each investor can contribute additional funds to top up their RRSP from previous years. If you haven’t contributed your RRSP maximum from previous years you are able to carry forward unused deduction entitlements.
Why Self-Directed RRSPs?
Our knowledgeable and experienced Investment Advisors constantly monitor leading investment opportunities for your portfolio. This personal attention to your RRSP allows you to invest in markets, which historically, show excess financial gains over the long term.
At the beginning of each year you are inundated with RRSP advertisements. We encourage you to build your portfolio on a monthly basis rather than making a one-time annual contribution. Returns can be enhanced by monthly contributions into your Self-Directed RRSP. A monthly contribution allows you to take advantage of current market conditions and allows the greatest potential for growth. If your account is over $100,000 in assets, your annual $100 trustee fee will be waived. Our Investment Advisors will take the time to discover how you intend to spend your retirement and then build a plan to help achieve your goals.
The information contained herein was obtained from sources believed to be reliable but the accuracy and completeness of it is not guaranteed and in providing it, Wolverton Securities Ltd. and its affiliates and subsidiaries does not assume responsibility or liability. This material is intended for informational purposes only. Please note that past performance is no indication of future performance.
