Understanding Tax Types

Understanding Tax Types

Retirement Income Fund & Life Income Fund

A Retirement Income Fund (RIF) and Life Income Fund (LIF) both provide income solutions during retirement. A RIF is used when transferring assets from a Retirement Savings Plan (RSP). A LIF is used when transferring assets from a pension. Some provinces require that a LIF be converted to a life annuity in the year an individual turn 80. Both a RIF and LIF provide continued growth in a tax-sheltered environment. Both options also offer choice in how assets are invested.


Notable Features

  • Flexible income options (subject to government minimums and maximums)
  • Competitive interest rates
  • Choice of investment options


Products that offer as RIF and LIF

  • Guaranteed Interest Account
  • Pivotal Select
 

Marketing Materials

Form Number Cover Marketing Material Name
1845 1845E-(1).jpg Retirement Income Fund Understanding minimum withdrawal percentages
The federal government has set minimum withdrawal percentages for a Retirement Income Fund (RIF). The minimum withdrawal is based on age at the beginning of the year and the value of your fund on December 31 of the previous year.

Retirement Savings Plan 

A retirement savings plan (RSP) is one of the best ways to ensure your future financial security. RSP money grows tax-deferred until you withdraw, allowing you to take full advantage of compound growth opportunities. A comfortable retirement is within the grasp of most of us, provided we start early and use compounding interest to our favour.

Notable features

  • Tax savings
  • Tax-deferred growth
  • Home Buyers' Plan
  • Lifelong Learning Plan
  • Income splitting
  • Peace of mind

Invest in your future with an RSP and begin to enjoy the benefits today. Take advantage of tax savings now, and have peace of mind in knowing you will have a more financially secure retirement.
 

Marketing Materials

Form Number Cover Marketing Material Name
20SR 20SRE.jpg Retirement Savings Plan Poster
Work Hard - Play Hard
21SR 21SRE.jpg Retirement Savings Plan Flyer
Work Hard - Play Hard
1352 1352E.jpg RRSPs: It's Time
As baby boomers reach their retirement years, many are finding that the retirement income they are relying on is falling short of their goal.
1353 1353E-(1).jpg Choosing the right account type
There is no simple answer to the question, where should I save my money?
1354 1354E-(1).jpg Retirement Savings Plan Loans Less Tax Better Retirement
Have you ever considered borrowing money in order to increase your contribution to your Retirement Savings Plan (RSP)?
1355 1355E-(1).jpg Benefits of RSPs
A Registered Retirement Savings Plan (RRSP) is one of the best ways to ensure your future financial security.
1356 1356E-(1).jpg RRSP vs. mortgage
Have you ever wondered whether it makes more sense to pay off your mortgage or invest in a Registered Retirement Savings Plan (RSP)?
1357 1357E-(1).jpg Are you saving enough for retirement?
If it is much easier to save before you have major financial commitments, why do so many young Canadians have difficulty setting aside money for the long-term future?
1460 1460E.jpg Retirement Savings Plan Personalized Poster
The "Work Hard, Play Hard, Save Hard" flyer that can be personalized with an advisor's name and contact information.
1583 1583E.jpg Make your money work for you
We all know a Retirement Savings Plan (RSP) is a great way to save for retirement.

Tax-Free Savings Account

A Tax-Free Savings Account (TFSA) is a savings option that does not apply tax to the growth earned by the investment. This is unique from traditional savings accounts that does charge tax on the growth. Even in a Retirement Savings Plan (RSP) the growth is taxed when the money is withdrawn from the RSP. With a TFSA, no matter how much the investments earn, the growth will never be taxed.  
 

Notable Features

  • Flexibility and tax-free growth
  • Unused contributions carried forward from year to year
  • Contribution room is regained the year following a withdrawal
  • Transferable to spouse/common-law partner upon death
  • Does not affect eligibility for government sponsored retirement income programs
  • Investment options that include a full range of funds and guaranteed interest options
Each year residents of Canada who are at least 18 years of age can invest an annual limit into a TFSA. Deposits made into a TFSA are made with after-tax dollars meaning that withdrawals can be made at any time on a tax-free basis. Once a withdrawal is made, the contribution room is regained in the year following the withdrawal.


Products that offer a TFSA

  • Guaranteed Interest Account
  • Pivotal Select


Marketing Materials

Form Number Cover Marketing Material Name
1276 1276E.jpg

Tax-Free Savings Account (TFSA)
Whether your savings goals are short-term or long-term, a TFSA can help you fast-track your savings.

1353 1353E.jpg

Choosing the right account type
There is no simple answer to the question, where should I save my money?

1583 1583E.jpg Make your money work for you
We all know a Retirement Savings Plan (RSP) is a great way to save for retirement.
1630 1630E.jpg Tax-free money does exist, if you know where to look
The simple truth is that money accumulates over time.