Over the years at Teachers' Convention, we had so many teachers stop by the Capital Planning booth for a little more information on their ATA Voluntary Benefits.
Maybe they were looking to invest in the ATA Group RRSP through payroll deduction. They may have been looking to start a TFSA to help them save for a down payment on a new home, or that exciting renovation. Or maybe they wanted some life insurance options from a trusted source.
Could this have been you?
Life is a little crazy right now, for us too. There were many changes that happened so quickly, and the information and the plans to set up your ATA Group RRSP that were made at your convention may have fallen by the wayside. And that is ok!
We are here – virtually and in-person, to help you with that ATA Group RRSP application, to get your ATA Group TFSA started, to answer your questions on all the different life insurance options out there. We can help you make sense of it all and help you to feel confident in your decision.
To get you started, here are the top 4 questions we get at teachers’ conventions:
1. What is the benefit of payroll deduction for my ATA Group RRSP?
The ATA Group RRSP is a long-term investment option. A group investment that gives you access to world class investment managers, some of which are only available to large scale investors – this is the power of being part of a group plan.
Payroll deduction (PRD) is available through most Alberta school boards. This method of contribution allows you to invest monthly in your RRSP, lower your taxable income and therefore pay less tax. We like to say it is like getting your tax return on every pay cheque!
For example, if you want to contribute $100 every month through payroll deduction, it may only cost you $70 off each pay cheque. The difference is your tax savings (please note that this is an approximate number, the tax savings are dependent on your yearly taxable income).
One tip we like to share is for teachers to invest that extra money in their RRSP. So, instead of only investing $100 (costing you $70), you invest $140 which would actually cost you about $100. You get an extra $40 invested each month and lower your yearly taxable income that much more.
If you are prepared for $100 to come off your pay cheque, then set it up for the full amount to be deducted and gain the investment benefits over the long-term!
For more details on your ATA Group RRSP and how payroll deduction works, click here.
2. How do I apply for the ATA Group RRSP & TFSA?
You may think that investment forms are long winded and complicated. That is not the case here with your ATA Group RRSP and TFSA! The forms are a quick 2 page application and to make it even easier we have created How-To RRSP and How-To TFSA information sheets to help you navigate the finer details of the application.
Click here for the ATA Group RRSP and TFSA forms. To make it easy, there are digital forms for both the RRSP and the TFSA; click to download, fill in the information, digitally sign it and email it back to us for processing. (Alternatively, you can download the form, fill it in by hand, sign it and scan/email it back to us.)
Submit your completed applications here
If you have questions about the ATA Group RRSP and TFSA connect with us here.
3. If I have RRSPs at a different institution, can I transfer them over to the ATA Group RRSP? And are there any fees associated with this?
The short answer is yes and there are no fees that would come from us in the event of a transfer. The long answer is, connect with us before you start the transfer. In some cases, there may be funds that are not at maturity and by transferring them you may incur some fees. We can help you to avoid that. Connect with an expert here for more information.
4. What is the difference between mortgage insurance with an insurance provider and the mortgage insurance that I can get at the bank?
Here is a scenario. You and your family buy a home, at the bank you sign up for creditor insurance (the bank version of mortgage insurance). If you were to die unexpectedly, the creditor insurance would pay for your mortgage but your family would be left with nothing. With creditor insurance, the bank owns the policy and they decide what to do with the insurance money.
Here is a different scenario. You and your family buy a home. You set up separate mortgage insurance, a policy that you own. If something were to happen to you, your family would get the insurance money and the decision of what to do with that money.
For more information, head over to the insurance section on our website. We have a list of questions that you can ask your insurance provider to help you feel confident in where you are putting your insurance dollars.
If you have questions or need more information, connect with one of our Advisors here.
Are you interested in learning more about your Financial Wellness and Debt Management?
As the providers of your ATA Voluntary Benefits, we are pleased to announce 2 upcoming dates of our Financial Wellness 101 as virtual sessions.
What would you do if things suddenly went very, very badly in your financial life? If you or your partner were laid off? Or you got sick and couldn’t work? Or your relationship breaks down? Or your debts just got out of control? If your income was interrupted for even a couple of months, could you handle it?
Financial Wellness 101 is built to give you tools to take control of your financial situation. How to start saving and investing. Easy steps on where and when to put your money. Tips for budgeting and saving. The importance of an emergency fund. Tips for maintaining a good credit score. It will also teach you about debt – how to handle it, how to address it, tools you can access if things get out of control.
Mark your calendars! We will be hosting two Financial Wellness and Debt Management virtual sessions this spring, April & May dates are coming. Sign up for the event announcements here.