What are you doing after school?
If you started teaching soon after graduation, chances are you'll hit your "magic number" (when your pension kicks in) at around age 55. Are you going to travel? Start a business? Take up hobbies you never had time for when you were teaching?
Whatever you end up doing, it's probably going to cost some money. And yes, you have a great pension, but it will still be a drop compared to what you're used to making. Until CPP and Old Age Security kick in, the ballpark amount will be about half of what you made while you were teaching. So how do you pay for all the things you'll finally get to do? With the ATA Group RRSP!
The Alberta Teachers Association Group RRSP gives teachers access to one of the best investment plans on the market today.
How is it better?
1. The ATA Group RRSP is available via Payroll Deduction in virtually every School Board in Alberta. This means that they deduct your RRSP Contribution from pre-tax income and you get your tax savings back on every paycheque! See the Payroll Deduction chart below for more details!
2. It has none of the transaction fees you'd normally see at the bank or other financial services companies. This means that there are no front-end, annual service, set-up, withdrawal or redemption fees. Or put another way, no cost to start investing, make changes or take money out. You get all the benefits of a self-directed plan without any of the usual costs!
3. Unlike the Deferred Sales Charges (DSC) that you'd commonly see through the bank, your money is not locked in and you can make changes or pull it out with no cost or penalty.
4. You get access to some incredible investment options, including the investment arms of every major bank, wholesale money managers and private fund managers who you would never be able to access on your own. (It's only through the power of having 40,000 members of the Alberta Teachers Association that we've been able to negotiate this.)
5. Capital Estate Planning has been working with the Alberta Teachers Association for over 25 years, and we report back to both Teacher Welfare and the Pension Committee of the ATA.
How to invest in the Alberta Teachers Association Group RRSP
You have three main ways:
For people who just don't know where to start, Target Date Funds like Fidelity Clearpath are complex investment vehicles in the back end that are incredibly simple to access for you as an investor. They simply look at your age and the year you plan to retire, and build a plan around that. When you have a lot of time before retirement, they create a product mix that's more aggressive so that you can grow as the markets shift. But every five years, they automatically become a little more conservative, so that by the time you get closer to retirement, they're more focused on protection.
For people who want to be a little more customized in their investing, Portfolio Funds provide a level of investing diversity that is hard to find in any other product. Based on your own individual risk profile, a Portfolio Fund like the Balanced Fund gives you the chance to invest in 16 different investment funds all at the same time -- and each fund has a whole portfolio of investments. It's the ultimate in balancing your investments!
For those who have a deeper understanding of the market and want to take advantage of running their own self-directed plan (without the fees normally associated with these plans), our High Touch option gives you the chance to choose between any of the 44 different investment choices inside the ATA Group RRSP in whatever percentage you choose.
The sooner you start investing the more your money will grow in the background. Contact us today to take advantage of this incredible plan!
ATA Tax Free Savings Account (TFSA)
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ATA Registered Retirement Income Fund (RRIF)
When it comes time to draw an income out of your ATA Group RRSP, how do you do it?