Various plans & strategies for managing your money are listed below. To find out more information or to inquire beginning to plan for your future, Click here to contact Laurie directly!

Registered Retirement Savings Plans (RRSP’s)*

An RRSP is a retirement plan that you or your spouse or common-law partner establish and contribute to. Deductible RRSP contributions can be used to reduce your tax. Any income you earn in the RRSP is usually exempt from tax for the time the funds remain in the plan. However, you generally have to pay tax when you cash in, make withdrawals, or receive payments from the plan.

Registered Retirement Income Funds (RRIF’s)*

A registered retirement income fund (RRIF) is an arrangement between a carrier (an insurance company, a trust company or a bank) and an annuitant under which payments are made to the annuitant of a minimum amount each year. The property under a fund is derived only as a result of a transfer of funds from another RRIF, an RRSP or a registered pension plan and annual amounts must commence to be paid to the annuitant immediately. Property and earnings in a RRIF are tax-exempt and amounts paid out of a RRIF are taxable on receipt.

Registered Education Savings Plans (RESP’s)*

Planning for the future is what we do at LR. A Registered Education Savings Plan is a special savings plan that can help you, your family, or your friends save for education after high school. RESPs are registered by the Government of Canada to allow savings for education to grow tax-free until the person named in the RESP enrolls in education after high school. Participating in a Canada Education Savings Grant (CESG) is only one way of growing that amount of money for the ones you love most. Discover your future with us today!

Leveraging

Leveraging is an investment strategy that thousands of investors have used to build personal wealth. Leveraging can be practiced on any income level. Let’s say that right now you have a $100 pre-authorized chequing plan with your mutual fund company. It would take nearly 12 years of $100 monthly payments to contribute about $14, 000 to your RRSP For this same $100 monthly payment, you could qualify for an Leverage loan of $14,000, which can start compounding today -12 years sooner.

“Mutual fund units and other securities may be purchased using available cash or a combination of cash and borrowed money. If cash is used to pay for the purchase in full, the percentage gain or loss will equal the percentage increase or decrease in the value of the securities. The purchase of securities using borrowed money magnifies the gain or loss on the cash invested. This effect is called leveraging. It is important that an investor proposing to borrow for the purchase of securities be aware that a purchase with borrowed monies involves greater risk than a purchase using cash resources only. To what extent a purchase using borrowed monies involves undue risk is a determination to be made by each purchaser and will vary depending on the circumstances of the purchaser and the securities purchased.  It is important that the investor be aware of the terms of a loan secured by securities.  The lender may require that the amount outstanding on the loan not rise above an agreed percentage of the market value of the securities. Investors who use borrowed funds to purchase their investment are advised to have adequate financial resources available both to pay interest and also to reduce the loan if the borrowing arrangements require such a payment.”

Group Pension Plans*

LR Future Insurance & Investments offers some of the most flexible packages currently available, tailored to meet the specific needs of your company and your work force. Even a company of three employees isn’t too small for a Saskatchewan Blue Cross employer benefit plan. All claims are processed in-province.

Benefits to this package includes:

• Replace high costs of individual plans
• Create security among employees
• Boost morale and improve productivity
• Reduce staff turnover

One of our employer benefit representatives can advise you on the most tax-effective ways to structure the cost sharing of your benefit plan with your employees. If you would like more information on coverage for your organization, please contact LR Future Insurance and Investments.

Contact us today to obtain more information about any of the above investment methods, or to find out which one is right for you, come in for a consultation.

Individual Pension Plans*

The IPP is a sound business decision for executives and business owners who have historically maximized their RRSP and have the income to support a more aggressive tax deferral arrangement. Some of the immediate benefits of owning an IPP are tax deductibility, creditor proof, ownership of plan assets (at retirement), guaranteed lifetime income to members and their spouses, past service funding and terminal funding. Here are some of the advantages in owning an IPP:

Locked in Retirement Income Funds (LRIF’s)*

All locked-in RSPs originate from Registered Pension Plans (RPP). RPPs are plans where funds are set aside by an employer, an employee, or both to provide a pension when the employee retires.

Under pension laws, after a period of time (usually between two and five years after joining the plan), all money in the plan becomes fully vested in the employee. This means that the employee has an unconditional entitlement to the money as and when any age or service requirements are met.

If you were a member of a Registered Pension Plan (RPP), your employment was terminated, and your plan was fully vested, the proceeds of that RPP would be considered ‘locked-in’. These locked-in funds can only be transferred into certain ‘Locked-in Plans’ which include the following Locked-in RSPs and Locked-in Retirement Income Options:

At LR Future we can help you choose the option that’s right for you based on your age, the type of investment plan you have now, your financial needs and the province you live in.*

*Mutual funds available in SK, AB and MB.

Prescribed Retirement Income Funds (PRIF’s)*

PRIFs are only available to investors who have pension funds governed by Saskatchewan legislation. There are minimum withdrawal limits but no maximum withdrawal limits. You are not required to purchase a Life Annuity, and your spouse is automatically named as your beneficiary. Spouses may sign a waiver allowing you to designate a different beneficiary.

Tax Planning Strategies*

The goal of tax planning is to arrange your financial affairs so as to minimize your taxes. There are three basic ways to reduce your taxes, and each basic method might have several variations. You can reduce your income, increase your deductions, and take advantage of tax credits.

Some tax-saving strategies include RRIF strategies, charitable donations, education credits and health care expenses. Tax planning can become complicated fairly quickly. Make sure to speak with a qualified LR tax professional who understands your personal financial circumstances before you commit to any strategies. Meet with us today to get the most from your return this April.

Charitable Giving*

Always have a will, as you do not want to lose control of your property at death. Leave a gift in your will for the not-for-profit organizations that made a difference in your life. This can be done through a community Foundation. Continue to positively impact people’s lives, even after you’re gone. A charitable gift could include, mutual funds, stocks, cash, real estate, jewellery, art and upon the giving of these gifts there may be a tax saving. As a beneficiary of your RRSP, RRIF or pension, name your favorite charity.

Read about the MacKenzie Charitable Giving Fund here.