When you retire, will you have saved up enough for retirement to do the things you want to do?
What are you planning to do in your retirement?
Are you going to travel? Start a small business? Take up hobbies you never had time for when you were working full time?
Whatever you end up doing, it's probably going to cost some money. And yes, it is possible that you'll have a pension, but it will be a big 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 working full time. So how do you pay for all the things you'll finally get to do? With the Capital Group RRSP!
The Capital Group RRSP gives you access to one of the best investment plans on the market today.
How is it better?
1. The Capital Group RRSP is available via Payroll Deduction. This means that your employer can 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 -- 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.
How Payroll Deduction Works:
Basically, you get your tax savings back on every paycheque -- or put another way, you pay less money at the time that you contribute! For example:
How to invest in the Capital 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 Capital 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!
Capital Group Registered Education Savings Plan (RESP)
How are you saving for your children's education? The average cost of University tuition in Canada is $7,437 in 2016-17.
Do you have one spouse (or common-law partner) with a pension, and one without? You may want to consider a Spousal RRSP!