Frequently Asked Questions
How much do I need to retire?
It depends. How much income do you want to have? When do you want to
retire? Based on your family history, what is the most likely length of time you
will need the money? Are there any major purchases planned for retirement? i.e.
cottage, RV etc. Do you have any debt? All of these questions and more need
to be answered before we can help you to answer the first question.
Can I transfer my registered
investments from another financial institution for placement through
Investia Financial Services?
YES. Your financial
planner is here to assist and prepare all necessary paperwork and submit the
transfer request on your behalf. Done properly, this type of direct transfer
will not incur any tax consequences under Revenue Canada Guidelines. However,
it is important to determine if the relinquishing institution will charge you
redemption fees, if any.
What are the fees for your
Our financial planning services and
advice come as no charge to our clients. We are paid by the institutions who are
recommended for your investments. Since we are independent, we have available a vast
array of mutual fund companies, insurance companies, along with banks and trust companies
at our fingertips. This way, we can offer our planning services and large product
base at no cost to you. We recommend only the most suitable products for your
Are my investments safe?
Your funds are placed directly
with the recommended institution through our office. All GIC's are covered
under CDIC insurance. While no mutual fund offers a guarantee, we are
pleased that we deal with the largest and most solvent fund companies when preparing
a well balanced portfolio. Security of investment is a personal attribute
that means different things to different investors. We endeavor to provide
a plan that meets all your requirements, and that includes your risk comfort
How long can you contribute?
You can make contributions to an RRSP until the end of
the year in which you become 71 years of age. You should verify your RRSP
deduction limit to ensure you have room to make contributions.
Maximum contribution limits: 18% of previous year’s earned income to a maximum
What is the contribution
deadline for the 2012 tax year?
March 1st, 2013
What is a spousal RRSP?
This is a deposit, which is made into
your spouses name, but the income deduction is taken in your name. Later when the
funds are withdrawn the income will be taxed to your spouse. Care must be taken as withdrawing the
funds too early will cause attribution of the income back to the contributor.
Should I name a beneficiary for my RRSP?
A named beneficiary will allow proceeds
of your RRSP to flow outside your estate in the event of your death. This will save you
costs such as probate fees and executor fees.
I am saving for a home, should I put my
RRSP purchase off?
The government has brought in the
homebuyers RRSP plan. This enables first time home purchasers (and some others under
special circumstances) to utilize up to $25,000 of their RRSPs as a loan to
themselves towards the down payment. This can be an expensive way to reach your
goals and this strategy should be discussed with your financial planner.
I think I will pay down my mortgage
first, or would an RRSP be better?
The answer to this question varies from
individual to individual. It depends on the expected rate of return of investments in your
RRSP and the interest rate of your mortgage. It often works out to your advantage to do
both buy the RRSP and use the tax savings to pay down your mortgage.
Tax-Free Savings Accounts (TFSA)
Updated January 2013
Tax-Free Savings Account Works
Canadian residents age
18 or older can contribute up to $5,500 annually to a TFSA (effective January
Investment income earned in a TFSA is tax-free.
Withdrawals from a TFSA are tax-free.
TFSA contribution room is carried forward and accumulates in future years.
amount of withdrawals can be put back into the TFSA in future years.
Re-contributing in the same year may result in an over-contribution amount
which would be subject to a penalty tax.
from a wide range of investment options such as mutual funds, Guaranteed
Investment Certificates (GICs) and bonds.
Contributions are not tax-deductible.
income earned within a TFSA nor withdrawals from it affect eligibility for
federal income-tested benefits and credits, such as Old Age Security, the
Guaranteed Income Supplement, and the Canada Child Tax Benefit.
can be given to a spouse or common-law partner for them to invest in their
assets can generally be transferred to a spouse or common-law partner upon