Municipal Investment Plan
Agenda
Saving for Retirement
What Me Save? Guide
Understanding Your Group Plan
Developing Your Investment Strategy
Monitoring Your Investments
Saving For Retirement
Where Retirees Get Their
Income
Retirement income
Primary
Secondary
Supplementary
Personal RRSP, MFA Group RRSP
Municipal Pension Plan
Home
Other Savings, MFA Non-registered Plan
CPP/OAS
How much do you need for
retirement?
Canadians need 65% to 80% pre-retirement income
replacement.
Pre-retirement income
100%
Retirement income
65%
80%
What? Me Save?
Retirement savings
worksheet

Hardcopy or online
Making the most
of your plan
Relationships
MFA,
Municipality,
Plan Members
Sun Life Financial
Recordkeeper
Investment
Managers
Benefits
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Ease of payroll deduction
Immediate tax savings (RRSP)
Lifetime eligibility
No front or back-end fees
No fees to make investment changes
Low investment management fees
Tax benefits of payroll
deductions
It only costs you $30 to contribute $50
Before
Gross pay
$500
$500
$50
Contribution
Less tax
(40%)
After tax
pay
After
RRSP
-$200
$300
Contribute
$50
-$180
Save
$20
$270
Pay
$30
Management Fees
Compared
Municipal Investment Plan
Retail
3.00%
2.75%
2.50%
2.25%
2.00%
1.75%
1.50%
1.25%
McLean
Budden
Balanced
Growth
Russell
McLean
LifePoints® Budden Fixed
Long-Term
Income
Trimark
Income
Growth
Segregated
Fidelity True
North®
Segregated
TDAM
Canadian
Bond Index
Jarislowsky
Fraser Int'l
Equity
Lower Fees
Make a Big Difference
Years to
retirement
return
1% return
2% return
5 years
3% more
6% more
12% more
10 years
6% more
12% more
22% more
20 years
14% more
22% more
49% more
30 years
16% more
35% more
81% more
1/ %
2
Canadian average outside a group plan is 2.50% - 3.00%
The Municipal Investment Plan’s fees range between 1.20% - 2.40%
Non-registered
(Savings Plan)
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Useful for employees with no RRSP room
No maximum contribution limits
Foreign content limit does not apply
Not tax-sheltered
Taxed on investment earnings each year
Spousal RRSP

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
You make the contributions
You receive the tax deduction
Your spouse owns the plan and directs the
investments
Money accumulates in your spouse's name
RRSP Spousal Account =
Income Splitting
Reasons for spousal account
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Your spouse is in lower tax rate
Your spouse has no retirement savings
You will pay less tax if you have two smaller incomes
instead of one large income
Spousal Income
@ retirement
$1250
Member Income
@ retirement
Tax Rate
Taxes
Paid
Net
Earnings
$2500
40%
$1000
$1500
$1250
(26%) (26%)
$650
$1850
Based upon: $30,000 annual retirement income
Total tax savings = $350
Things you should know….
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Lump Sum Contributions and Transfers In Allowed
Lifetime eligibility (even if your employment
changes)
Withdrawals
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Withholding tax
Added to your taxable income
RRSP first withdrawal free, $25 each additional
NREG $25 per withdrawal
Ways to Contribute
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Payroll deduction (if municipality opts in)
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Lump sum payments
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Monthly contributions through the MFA
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Transfer in from other institutions
Developing Your
Investment Strategy
Investment Types
(Asset Classes)
Equities (Stocks)
 Ownership in company
 Share in company profits
 Canadian or foreign
Bonds (Fixed Income)
 Promise to repay debt
 Receives interest
 Government and corporate
Money Market/Guaranteed
 Federal government debt
 Short term, less than 1 year
Risk Versus Return
Growth of $1
Inflation
T-bills
(1960 - 2003)
Bonds
S&P TSX Composite
$70.00
$60.00
$50.00
$40.00
$55.65
$37.67
$30.00
$20.00
$20.69
$10.00
19
60
19
63
19
66
19
69
19
72
19
75
19
78
19
81
19
84
19
87
19
90
19
93
19
96
19
99
20
02
$0.00
$6.66
The Cycle of Market
Emotions
Point of maximum
financial risk
“Wow, I feel
great about this
investment.”
“Temporary
set-back.
I’m a
long-term
investor.”
Euphoria
Thrill
Anxiety
Denial
Excitement
Fear
Desperation
Optimism
Optimism
Panic
Relief
Capitulation
Hope
“Maybe the
markets just
aren’t for
me.”
Source: Westcore Funds / Denver Investment Advisers LLC, 1998
Despondency
Depression
Point of maximum
financial opportunity
Timing the Market
Year
T-Bills
Bonds
Stocks
1999
4.7%
-1.1%
31.6%
2000
5.5%
10.3%
7.4%
2001
4.7%
8.1%
-12.6%
2002
2.5%
8.7%
-12.4%
2003
2.9%
6.7%
26.7%
Passive / Market Oriented
 Objective to produce returns that replicate a
particular index (e.g. S&P 500)
 No surprises, consistent with market returns
Value / Long Term Oriented
 Value Manager looking for a bargain when buying stocks
 May take some time to prove their worth – long term strategy
 Tend to outperform during bear markets
 Reasonably priced without sacrificing quality
 Considered a defensive investment
Growth Oriented
 Buys stock in companies that tend to grow faster than others
 Technology companies were “growth” stocks over past 5-10 years
 Sometimes young companies with high potential
 Future growth in earnings is expected
Specialty Funds
 Beutel Goodman Small Cap
Russell Lifepoints Funds
 Select ONE balanced fund best suited to your objectives
 Rebalancing and foreign content monitored for you
 Takes the guess-work out of picking funds
Russell LifePoints ®
Canadian
Bonds
20%
52%
14%
Foreign Equity
Canadian
Equity
LONG-TERM GROWTH
14%
Aggressive
US Equity
Canadian
Bonds
32%
40%
14%
Canadian Equity
Canadian Equity
BALANCED GROWTH
14%
US Equity
Foreign Equity
15%
10%
65%
Canadian Bonds
10%
US Equity
Foreign Equity
BALANCED INCOME
65% Bonds / 35% Equities
Conservative
20% Bonds / 80% Equities
40% Bonds / 60% Equities
Moderate
Investment Risk
Questionnaire
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Hardcopy or online
Choosing and Monitoring
your investments
So, how do you choose?
Pre-defined asset mixes
Do it yourself approach
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Completely hands-on
Create your own asset mix
Convert your profile into a
strategy
Monitor
Rebalance regularly
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One stop shopping
Answer risk profile
questionnaire
Use individual fund sheets
3 LifePoints® Funds
Pick the “one” fund that
matches your risk profile
Monitor Your Investments
Revisit your strategy periodically
 Will change over time
Rebalance your portfolio OR choose a balanced
fund approach
 Keeps your asset mix on track
 Sell high, buy low principle
Stay Informed – Personal
Statements
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Semi-Annual
Easy to read
Personal rates of return
Transaction history
Plan information
Bulletin board
Account Access Tools
Customer Care Centre
1-866-733-8613
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Account balances
Rates of return
Transfer between funds
Market information
Enrolment assistance
Over 150 languages
Internet Access
www.sunlife.ca
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Account balances
Lump sum deposits
Transfer between funds
what? me save? guide
Asset allocation
Secure e-mail
Webcast
RRSP receipts
Morningstar
Your Next Steps
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Complete the Investor Risk Profile - What? Me
Save? Guide (Pages 20-23)
Review the Investment Fund Pages in your package
Complete the enclosed application form and
forward to the MFA
For further assistance contact Meagan at the
MFA at (250) 380-0432 ext 225, or an
investment specialist at the Customer
Care Centre at 1-866-733-8613
Questions?