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RRSP Investments

Building up your retirement assets in a tax-sheltered setting while also reducing your income tax for the current year in a RRSP.

Start a RRSP

Registered Retirement Savings Plan (RRSP)

One highly effective tool for building up retirement assets in a tax-sheltered setting while also reducing your income tax for the current year is the registered retirement savings plan (RRSP). If you think you can’t invest in an RRSP, think again.

A TrustLife RRSP Loan allows you to start investing now or to top up your contributions on your existing RRSP. The earlier you invest, the closer you are to a bright and secure retirement. Get your RRSP working for you sooner with a TrustLife RRSP Loan

Principal Protected Investments

When it comes to investment products we have you covered. We carry a extensive selection of Principal Protected financial products to guarantee that we have the right diversification to suite your needs.

We can assist you with the following:

  • Non-Registered Investments
  • Investment and RRSP Loans
  • Group RRSP’s

Guaranteed Interest Accounts

  • Flexibility to decide how much you want to invest
  • Interest based on the rate in effect
  • Terms varying from one to five years
  • Redeemable and non-redeemable registered deposits
  • Redeemable and non-redeemable non-registered deposits
  • You can receive monthly interest payments

Immediate Annuities (Competitive rates offered)

  • Option of life or prescribed annuities;
  • Possibility of receiving your annuities monthly, quarterly, semi-annually or annually;
  • Guaranteed periods available on life annuities.

Home Buyer’s Plan (HBP)

The Home Buyers’ Plan: Fulfill your dream of becoming a homeowner
The Home Buyers’ Plan (HBP) is a winning formula that enables you to withdraw funds from your RRSP to help you purchase your first home.

How do I qualify?
You are eligible if neither you nor your spouse has owned a primary residence (your own home) within the past five years.

The HBP allows you to:

  • Withdraw a maximum of $20,000 from your RRSP ($40,000 for couples) tax free.
  • Use this amount as a down payment toward the purchase of your home.
  • Refund your RRSP withdrawal over 15 years, interest free.

Not enough money in your RRSP?

Don’t let this prevent you from fulfilling your dream of owning your own home. There’s a solution: the HBP loan. To qualify, simply provide proof that your mortgage has been approved by a financial institution.

An HBP loan allows you to:

  • Take out a loan up to your ceiling contribution amount (by claiming unused RRSP contributions from as far back as 1991).
  • Deposit the funds in an RRSP for 90 days.
  • Withdraw the funds from your RRSP after 90 days to repay the loan.
  • Receive an income tax receipt and use your tax refund as a down payment on your first home.
  • Take advantage of a two-year grace period after you obtain an HBP loan before starting to repay your RRSP over 15 years.

Frequently Asked Questions

  • What is the best time to start a RRSP?

    The growth of RRSP depends on time. The longer you invest your money with RRSP, the greater the opportunity it has to grow.

    Here is an example,

    Let us say you are 25 and you contribute $100/month to a RRSP that gives you an annual 6% return. By the time you are 65, you will get a return of nearly $197,000. That is the beauty of investing in RRSP systematically over a longer period of time.

  • Is there a RRSP contribution limit?

    The annual contribution limit is set by the Government of Canada. Your maximum allowable RRSP contribution for the current year is 18% of your previous year’s earned income, minus any pension adjustments, up to the government maximum for the tax year.

  • What will happen to my RRSP when I turn 71?

    When you turn 71, you must do the following:

    a) Withdraw the funds from your RRSP; or

    b) Transfer the funds directly into a plan that provides income — for example, a Registered Retirement Income Fund (RRIF); and/or

    c) Use the funds to purchase an annuity that can provide you with regular income to draw on during retirement.

    Contact your financial advisor for more information.

  • What is the advantage of RRSP over a TFSA?

    A TFSA is a tax-free savings account, which means it allows you to save money tax-free. When you withdraw, you will not be entitled to pay taxes. Unlike RRSP, contributions made to a tax-free savings account are not tax deductible.

    Because it saves you money tax-free, a TFSA can be your best option for short term projects, like saving money for a new car or a trip. The RRSP, on the other hand, is more suited towards long-term savings.

  • How much should I contribute to a RRSP?

    It depends. People can contribute to a certain limit. You are allowed to invest up to 18% of your eligible income or according to the limit set by the government.

     

    Contact a Trust Life financial advisor to know how much you should contribute based on your budget. Everyone has different savings goals as well as needs. If you haven’t opened a RRSP yet, it is high time you do.

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