Individual Savings and Retirement
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Similar to Mutual Funds, Segregated Funds are a "basket of stocks, bonds and securities", usually with a common theme. These funds provide high levels of diversification between companies, sectors and types of securities. Funds are available for all risk tolerances, from the most conservative investor to those who are looking for high rates of return and specialty funds.
Segregated Funds provide several key benefits and guarantees that no Mutual Fund can.
Creditor Protection: Because Segregated Funds are a form of life insurance, they possess a beneficiary designation. If you designate an irrevocable beneficiary, your investment may be protected from creditors as the funds are now under the control of the irrevocable beneficiary.
Death Benefit Guarantee: At the time of your death your principal is guaranteed, regardless of the market value at the time.
Maturity Guarantee: Segregated Funds provide a 10-year maturity guarantee. If your investment's market value is less than your principal at the time of the market valuation, you can cash out your funds for the full principal amount*.
For example, if you initially invest $100,000 and after 10 years' time, your market value is only $80,000, the insurance company will write you a cheque for the full amount of your original $100,000 deposit.
* assumes a 100/100 guarantee, some funds provide a 75% death or maturity guarantee, please review your information folder for more details.
Registered Retirement Savings Plans (RRSP)
Registered Retirement Savings Plans are the most popular way Canadians save for retirement. Contributions are tax deductible and savings grow tax sheltered.
Tax Free Savings Account (TFSA)
Tax Free Savings Accounts are the newest form of government-sponsored savings plan. Introduced January 1, 2009, the TFSA allows a $5,000 annual contribution to grow tax-sheltered. Contributions are not deductible, but withdrawals are non-taxable.
Registered Education Savings Plans (RESPs)
Registered Education Savings Plans provide tax-deferred savings and government grants to help you save for your child's education.
Are you looking for a guaranteed income regardless of how the stock market performs? Annuities provide you the security of a guaranteed income, regardless of how the underlying investments perform.
Term Certain, 10, 15, or 20 year guaranteed payouts.
Successor Annuitants, if you pass away, your annuity payments can be passed along to a successor who will continue to receive the payments.
Life Cash Refund, a common myth concerning annuities is that once you die you lose your money forever. This is not the case. By purchasing a Life Cash Refund, you receive your annuity payments, and at the time of your death, your beneficiary receives a death benefit equal to the remaining annuity premium. For example, if you purchased a $100,000 annuity and had received $20,000 in annuity income by the time of your death, your beneficiary would receive a death benefit of $80,000. Your money is not lost!
Guaranteed Minimum Withdrawal Benefit (GMWB)
Provides guaranteed income much like an annuity, however, they also provide the added benefit of growing your investments with guaranteed annual bonus payments of 5% - 7% for each year you do not make a withdrawal.
GMWB plans are fairly new in Canada, being pioneered recently by Manulife Financial. There are several providers now in Canada. All plans have their own individual strengths and weaknesses. Our preferred plans are:
HMR Insurance - Victoria, BC. Free, no obligation quote or contact us in Victoria for more information about savings and retirement plans: 1-888-592-4614