What are you doing after school?
Your Retirement. The fun that you’ll be having after you retire from your school board.
If you're a School Board Employee in Alberta on the Local Authorities Pension Plan (LAPP), when you hit your "magic number" your income in retirement will drop significantly. So how do you make up the difference?
Or if you don’t have access to a pension plan, the bigger question is, how are you going to supplement your income in retirement? With the Group RRSP for Alberta School Board Employees!
The Alberta School Board Employees Group RRSP gives you access to one of the best investment plans on the market today.
How is it better?
1. The ASBE Group RRSP is available via Payroll Deduction (PRD) 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 how this works!
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, or set-up fees. Or put another way, no cost to start investing, or make changes. You get all the benefits of a self-directed plan without any of the usual costs!
3. There are none of the Deferred Sales Charges (DSC) that you'd commonly see through the bank. This means that your money is not locked in -- you can make changes 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 over 40,000 members in the Alberta Teachers Association and School Board Employees' organizations that we've been able to negotiate this.)
5. The experience only Capital Estate Planning has of working with Alberta School Board Employees for over 40 years!
How to invest in the Alberta School Board Employees Group RRSP
Investing is not always the simplest concept. For some folks it comes easy and for others it may feel a little overwhelming. Or you may fall somewhere in between!
Over the years we have worked with world class investment managers and with that we have brought a fund into our ASBE Group RRSP that makes investing easy and approachable. This is the fund for the investors who feel like they want to leave the big investment decisions up to the professionals.
We consider the Fidelity ClearPath fund our “default fund”, this is a portfolio of investments that you invest in and sit back and let your money grow and ride the markets.
Sounds pretty good? Here’s how it works.
Fidelity Clearpath have complex investment vehicles in the back end that are incredibly simple to access for you as an investor with the ASBE Group RRSP. 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.
- Early in your career = focused on growth with more aggressive funds (higher risk investments)
- Later in your career = focused on protection with more conservative funds (lower risk investments)
These adjustments will automatically happen behind the scenes. You could think of it as the slow cooker of investing. Set it up and let it go!
This portfolio is made up of a mix of investments that provide balance, ex: short term investments, bonds, and equities. The chart below is a sample of the investment mix that your RRSP would have throughout your career.
Having diversification in your investments is something that we talk to many of our clients about.
You can achieve diversification with the Fidelity ClearPath fund. Investments at every stage are made up of a mix of different categories, in order to capitalize on the upside of growing markets, but also to protect you when one kind of investment goes down as part of its normal cycles – essentially “spreading out the risk”. The pie chart below shows an example of this mix of different categories.
Do you consider yourself a savvy investor?
We get that there are many different types of investors out there and the default fund may be not quite right for some. If you are interested in hand picking some or all of your funds – we can do that with you. As an investor looking to make the decisions you have the choice of 44 different investments inside the ATA Group RRSP, selecting them in whatever percentage you choose.
We have financial advisors here to work with you to build your portfolio.
Feel like you fall somewhere in between these two types of investors?
Yes, we are happy to work with you to make a few key decisions but with a bit more guidance. The Portfolio Fund is a Balanced Fund that gives you the choice of 16 different investments and to help you determine which funds to choose there is the Investment Personality Questionaire. This is a resource available to you that can help determine your investment risk level, you can find it here.
The sooner you start investing the more your money will grow in the background. Contact us today to take advantage of the only Group RRSP built specifically for Alberta School Board Employees!
ASBE Registered Retirement Income Fund (RRIF)
When it comes time to take money out of your Alberta School Board Employees Group RRSP, how do you do it?
Guaranteed Investment Certificates (GICs)
Are you more worried about protecting your investment than growing it? GICs can be a part of your investment strategy that do just that.