Plan for life TM

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Plan for
TM
life
Enrolling in your group program
with Standard Life ExpressTM
Company name
Broker/Advisor and Logo
Date
Broker/advisor name
Plan for lifeTM
• xxxxxxxxxxxxxxxxxxx
• Xxxxxxxxxxxxxxxxxxx
• xxxxxxxxxxxxxxxxxxx
• xxxxxxxxxxxxxxxxxxx
3
Key topics
Plan for lifeTM
• Enrolling today
• Contributions
• Investments
• Guidance
• Questions and answers
4
How do you feel about your retirement?
Plan for lifeTM
5
Did you know?
Plan for lifeTM
Nearly 20% of all
Canadians expect
their retirement
income to be barely
adequate and about
10% expect it to be
inadequate for
retirement.
Statistics Canada –2007 General Social
Survey Report: The retirement plans and
expectations of older workers (near-retirees
aged 45-59 were surveyed).
6
A dollar a day
Plan for lifeTM
$20,000
20000
$17,701
18000
16000
$15,000
14000
12000
$10,000
10000
$8,810
8000
6000
$5,000
4000
$3,351
2000
$0
0
10 years
20 years
30 years
*The calculations are based on 5% rate.
7
How much do I need?
Plan for lifeTM
Experts suggest you will need to replace 70% of your salary.
Keep in mind, your income will come from three sources:
• Government programs (Old Age Security, Canada or
Quebec pension Plan)
• Your group savings and retirement program
• Your personal savings (real estate, other savings
plans or income)
8
Advantages of payroll deductions
Plan for lifeTM
In the example below, saving $50 really only costs you
$30 on your take home pay. And you pay less in tax.
5% = $50
$50
$380
in taxes
$570
to spend
9
How much am I allowed to contribute?
Plan for lifeTM
Limit set by Canada Revenue Agency (CRA)
• 18% of your previous year’s earned income or the dollar
maximum stipulated for the current year
Note: It is your responsibility to monitor your limits
Check your Notice of Assessment (only for RRSP and TFSA)
www.cra-arc.gc.ca
10
Start now, save more. Regular contributions.
Plan for lifeTM
$100/month over 40 years
$148,856
$200/month over 20
$81,492
years
Same amount of money ($48,000), same investment return (5%),
longer period of time… the savings almost double!
You simply earn more by putting aside smaller amounts of money
over a longer period of time.
11
Pay yourself first.
Plan for lifeTM
Nancy
Marc
$150
$400
$510
$600
$340
Take home pay
Tax payable
Take home pay
Tax payable
Savings program
12
Your group program
Plan for lifeTM
Registered Retirement
Savings plan (RRSP)
Employee
contributions
Employer
contributions
Tax-Free Savings
Account (TFSA)
Employee
contributions
Review the “Summary of Main Provisions” located in your enrolment kit for more
plan details and other important information.
13
What is an RRSP?
Plan for lifeTM
The advantages of a Group Registered Retirement
Savings Plan (RRSP):
• A convenient, disciplined savings program through payroll
deduction
• Immediate tax reductions
• Dollar cost averaging reduces investment risk
• Group buying power – favorable interest rates and lower
investment management fees
• Spousal RRSP available (Income-splitting)
14
Termination or retirement
Plan for lifeTM
• At termination or retirement:
– Contributions can be cashed out
– Can be transferred to another Registered Retirement
Savings Plan (RRSP)
– Can be used to purchase an annuity, or a RRIF
15
Tax-Free Savings Account (TFSA)
Plan for lifeTM
Capital gains and other investment income earned will not be taxed –
even upon withdrawal!
• Contribution room starting at $5,000 per year and indexed to inflation and
rounded to the nearest $500 on a yearly basis
• TFSA withdrawals can be re-contributed the following year with no penalty
• Carry forward unused contribution room for an indefinite period
• Choose from a variety of investment options much like those in your RRSP
• TFSA assets can be transferred to a spouse upon death
• Effective savings vehicle for both short term and long term goals
• The same low management fees as with your group retirement products
16
Investments
Plan for lifeTM
Guaranteed funds
• Little or no risk
Compound Interest Accumulator
(CIA)
• Lower rate of return over
the long-term
Daily Interest Account (DIA)
Market-related funds
Fixed Income Funds
• Investments are not guaranteed
• Invest in a variety of securities
Balanced Funds
Equity Funds
17
Investments
Plan for lifeTM
• Fixed Income Funds
-Invest in interest generating investments
-Treasury bills, bonds, mortgages
• Equity Funds
-Invest in equity or shares of corporations
-Canadian equity, American, International
• Balanced Funds
-Invest in a mixture of stocks and bonds
-Portfolio changes as market conditions change
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Your Investment options
Plan for lifeTM
To find out more…
• Consult the back of your enrolment form for a complete list
of fund options
• The “rates of return” and “fund summaries” can provide
useful information to compare investment performance
and any fees charged by the investment manager
19
Choosing your investments
Plan for lifeTM
It’s simple and easy…
You need to know two things to start investing
• Your investment period
• Your investor profile
20
Your investor profile
Plan for lifeTM
21
One page fund summaries
Plan for lifeTM
• Information on fund manager
• Objective, style of fund
• Top 10 holdings
• Portfolio composition
• Gross rates of return
• Fund summaries
22
Avenue portfoliosTM
Plan for lifeTM
• Automatically rebalanced
within each portfolio
• Automatically riskadjusted as you age
Investment period
Investor profile
Conservative
>25 years
Moderate
>25 years
Aggressive
>25 years
Conservative
20 - 25 years
Moderate
20 - 25 years
Aggressive
20 - 25 years
Conservative
15 - 20 years
Moderate
15 - 20 years
Aggressive
15 - 20 years
Conservative
10 - 15 years
Moderate
10 - 15 years
Aggressive
10 - 15 years
Conservative
5 - 10 years
Moderate
5 - 10 years
Aggressive
5 - 10 years
Conservative
<5 years
Moderate
<5 years
Aggressive
<5 years
23
Lifecycle movement
Plan for lifeTM
• Ensures that your chosen Avenue
portfolio remains appropriate as
your investment period shortens
• Activated when you pick Avenue
portfolios but you can deactivate it
at any time
More than 25
20-25 years
15-20 years
10-15 year
5-10 year
Less than 5
24
Systematic Asset Rebalancing
Plan for lifeTM
• Rebalances your Avenue portfolio to ensure your level of risk
always remains aligned to your investor profile
• Activated when you pick Avenue portfolios but you can
deactivate it at any time
Fixed
50%
Equity
50%
25
Picking your own investments
Plan for lifeTM
26
Monitored Avenue Portfolio Program
Plan for lifeTM
The Monitored Avenue Portfolio Program (MAPP):
once your particular investment solution is chosen it is then
thoroughly monitored to ensure that there is no deviation in
the portfolio’s long-term investment objective. Any changes
triggered by the monitoring will be transparent and
seamless for you.
27
Spousal RRSP account
Plan for lifeTM
Group RRSP
Employee
account
Spousal
account
• Your contributions
• Your contributions
• Your tax deduction
• Your tax deduction
• Account in your name
• Account in spouse’s name
28
Spousal RRSP account
Plan for lifeTM
Comparison of splitting retirement income
Income
Taxes paid
Money kept
Spouse #1
$50,000
$15,073
$34,927
Spouse #2
0
0
0
Spouse #1
$25,000
$ 5,096
$19,904
Spouse #2
$25,000
$ 5,096
$19,904
Total combined
$50,000
$10,192
$39,808
Income splitting
29
Your VIP Room and Retirement calculator
Plan for lifeTM
30
Know your rights and responsibilities
Plan for lifeTM
It’s your right to receive information about:
• the features of your group program
• the investment options available to you
• the tools and services we offer
It’s your responsibility to:
• use the information and tools provided by your employer and Standard Life
• seek information about the rules and features of your plan(s)
• choose contribution amounts and investments when and where applicable
• seek financial and legal advice
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Key sections of your form
Plan for lifeTM
32
Account statements
Plan for lifeTM
• Summary of your account, detailed
information about your plans
• Includes your Retirement checkup TM
• Sent directly to your home or online in
your VIP Room
33
What you need to do?
Plan for lifeTM
• Read through the enrolment material provided
• Complete the investor profile questionnaire
• Choose an Avenue portfolio or pick your own À la carte funds
• Complete the enrolment process by the target date set by your
employer and return the signed beneficiary designation form back to
your employer who will forward it to Standard Life
34
Questions?
Plan for lifeTM
[email protected]
www.standardlife.ca
1-800-242-1704
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Plan for lifeTM
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Standard Life Canada and its affiliates are subject to license restrictions. Use of these assets outside of their original
authorized purpose is prohibited without the written consent of the GDS, and may involve the disbursement of additional
licensing fees. Failure to obtain this approval may result in legal action. Any additional usage of the asset from what was
disclosed should be discussed with GDS to assure that the asset rights permit this use.
GDS must be advised before transferring assets such as images, sounds, footage and fonts to a third party regardless of
if they are original to Standard Life or purchased from an online bank.
Questions? [email protected]
36
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