RRSP (Registered Retirement Savings Plan)
RRSPs are one of the best investments you can make because you are investing in your own future. When you hit your retirement age you want to be financially free to enjoy everything that retirement has to offer. Credential Financial Strategies Inc. has a wide range of investments products to suit anyone’s preferences. The benefits of RRSPs are two-fold. First, the income that is placed in the RRSP is taken out of the earned income portion of your tax return, thus allowing you to not pay tax on this income. Second, the earnings of the investments within this tax-sheltered vehicle are not taxable, and are held within the RRSP. There is no minimum age as to when you can contribute to an RRSP, but there is a limit determined by your unused contribution limit, calculated from your previous earnings, less any contributions. The maximum age for holding funds in an RRSP is age 71. By the end of the year in which you turn 71, you must convert your RRSP to a RIF and start taking an income from those savings.

RRIF (Registered Income Fund) 
You've been saving in RRSPs for all those years now it's time to cash in. A RIF helps you dip into your savings by providing an income source while partially sheltering you from taxation. There is a minimum you must take from the RIF, a formula based on age. There is no maximum, but your taxation level will play a determining factor in what you are comfortable withdrawing.

LIF (Life Income Fund)
A LIF is much the same as a RIF but funds usually come from a pension plan. A LIF is used to provide a regular retirement income, and is subject to minimum and maximum withdrawal limits.

LRIF (Locked-in Retirement Income Fund)

A LRIF gives you peace of mind in knowing that you will have a steady income source for your entire life. Conversion to an annuity is not required. The same minimum mandatory payments apply as with an RIF, however there is also a maximum payment amount per year to ensure the LRIF continues for the lifetime of the holder.

Life Annuity

A Life Annuity is only available through life insurance companies. The savings you have built up are converted into an income based on various life expectancy aspects. The income will not cease until death. This income is practical as you will know exactly how much income you will have for the rest of your life but inflation is not factored in your payment. Therefore as inflation rises your buying power diminishes.

RESP (Registered Education Savings Plan)    

Every child is filled with a world of potential. But post-secondary education is not getting any cheaper and requires a large investment. You or your child can be ready by starting a Registered Education Savings Plan.

A Registered Education Savings Plan (RESP) is a government approved plan for the purpose of providing post-secondary education funding for a beneficiary. Income earned within the plan is not taxed until it is withdrawn.

Best of all, the government wants to give you money! Through the Canada Education Savings Grant (CESG) the federal government will add funds directly to your child's RESP.  Amounts are based on your family income but have a minimum of a 20 cent bonus on each dollar invested (up to the first $2000 invested). 

Additional rules and requirements apply, but the combination of the RESP and CESG can be a powerful tool to preparing for one of the best investments you can make: a child’s future. 

Contact a Credential Financial Strategies Inc. Representative.

*Mutual Funds are offered through Credential Asset Management Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Unless otherwise stated, mutual fund securities and cash balances are not insured nor guaranteed, their values change frequently and past performance may not be repeated. ®Credential is a registered mark owned by Credential Financial Inc. and is used under licence. Credential Financial Strategies Inc. is a member company under Credential Financial Inc., offering financial planning, life insurance and investments to members of credit unions and their communities. ®Credential is a registered mark owned by Credential Financial Inc. and is used under licence.Your insurance contract will provide details of the coverage available under the plan you choose. Restrictions may apply.