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Group RRSPs
Thinking of providing pension benefits for your business?
Consider a Group RRSP with Scott Swallow, Financial Advisor
Manulife Securities Incorporated
Defined-benefit plans are out!
There's a growing awareness amongst employers that defined-benefit pension plans are increasingly subject to new legislation, high costs, and the risk that serious financing shortfalls may one day imperil the business itself.
Group RRSP plans are increasingly popular, and have several advantages over defined-benefit plans, both for the employee and the employer:
Why is a Group RRSP plan best for you as an employer?
Simplicity. Most of the administration of the plan is taken care of by us, here, at Manulife Securities Incorporated, freeing up your staff for more productive activities. A few forms are all that's required to get started. Group RRSPs are largely free of the restrictions and other requirements of pension legislation, thus reducing legal and other consulting costs. No provincial government reporting is required. Contributions on behalf of your employees are a tax-deductible expense. Plans are easy to modify.
Flexibility. You can decide on how much you, as the employer, want to contribute to the plan, and when employees will be eligible to participate. Give employees more or fewer options, self-directed or controlled, depending on salary, seniority, etc. Employees can opt out if they wish. Match contributions to your pay cycle.
Limited Liability. This is the big one - as a defined-contribution plan, Group RRSPs shield employers from any potential 'topping up' requirement if investment earnings fall below expectations.
Clarity of Ownership. Funds placed into a Group RRSP are fully and immediately the property of the owner.
Morale. Employees react very favourably to Group RRSPs, regardless of whether or not the employer is contributing. Employees with pension or group plans tend to be more stable employees.
Why Manulife Securities Incorporated?
Choice. I can offer an unparalleled choice of investments, including mutual funds, stocks, bonds, GICs, and insurance products. Other Group Plans are typically limited to just mutual funds, in some cases from only one company. Why should your employees be limited to only a few alternatives?
Service. Every group employee becomes a client, and is entitled to a high level of service. I am available to meet with clients on a regular basis to discuss financial matters.
Consolidation. Many employees get tired of having company Retirement Funds and personal investments in different institutions. With a Manulife Securities Incorporated Group RRSP plan, employees can transfer existing investments into a Manulife Securities Incorporated Account, and have everything 'under one roof'.
Why a Group RRSP plan for employees?
Tax efficiency. RRSP tax refunds are actually inefficient tax-wise. Employees are in effect 'loaning' CCRA money until tax refund time. With a Group RRSP plan, contributions are deducted at source and you are not taxed on these contributions. Employees receive an immediate tax reduction rather than waiting for their tax return.
Employer contributions. If the employer adds to employee contributions by even just 5 or 10%, it becomes very attractive for the employee.
Savings Discipline. Group plan contributions come right off the top of the paycheque, so they are in effect 'automatic', and soon are not even noticed.
Spousal Contributions. The concept of post-retirement income splitting is becoming better known, and a Group RRSP plan allows employees to elect to contribute to either their own RRSP, a Spousal RRSP, or both.
Portability. If an employee leaves, the account remains intact with them.
Liquid. The money is fully vested with the employee, who can collapse the RRSP and pay the tax at any time or transfer the funds to a personal RRSP.
For a free consultation to see how a Manulife Securities Incorporated Group RRSP plan can be set up for your business, give us a call.
Manulife Securities Incorporated
11 Bond Street, Suite 104
St. Catharines ON L2R 4Z4
Toll-Free: 1-866-864-9652
Telephone: (905) 704-6650
Email: scott.swallow@manulifesecurities.ca
The information contained herein is for Canadian residents only and does not constitute an offer to sell or a solicitation in any foreign jurisdiction, or in any Canadian jurisdiction where Scott Swallow, is not qualified to effect sales.
Insurance products and services are offered through Manulife Securities Incorporated Insurance Services Inc. (a licensed life insurance agency and subsidiary of the Manulife Securities Incorporated group of companies) by Manulife Securities Incorporated Advisors licensed as life agents.
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