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Enrolling in your group program with Standard Life Express TM Plan for life TM
| Date post: | 27-Dec-2015 |
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Enrolling in your group program
with Standard Life ExpressTM
Plan for lifeTM
Company nameBroker/Advisor and LogoDate
Plan for lifeTM
Broker/advisor name
• xxxxxxxxxxxxxxxxxxx
• Xxxxxxxxxxxxxxxxxxx
• xxxxxxxxxxxxxxxxxxx
• xxxxxxxxxxxxxxxxxxx
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Plan for lifeTM
Key topics
• Enrolling today
• Contributions
• Investments
• Guidance
• Questions and answers
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Plan for lifeTM
How do you feel about your retirement?
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Plan for lifeTM
Did you know?
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Nearly 20% of all Canadians expect their retirement income to be barely adequate and about 10% expect it to be inadequate for retirement.
Statistics Canada –2007 General Social Survey Report: The retirement plans and expectations of older workers (near‑retirees aged 45‑59 were surveyed).
Plan for lifeTM
A dollar a day
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02000400060008000
100001200014000160001800020000
10 years 20 years 30 years
$3,351
$8,810
$17,701$20,000
$15,000
$10,000
$5,000
$0
Plan for lifeTM
How much do I need?
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Experts suggest you will need to replace 70% of your salary.
Keep in mind, your income will come from three sources:
•Government programs (Old Age Security, Canada or Quebec pension Plan)
•Your group savings and retirement program
•Your personal savings (real estate, other savings plans or income)
Plan for lifeTM
Advantages of payroll deductions
In the example below, saving $50 really only costs you $30 on your take home pay. And you pay less in tax.
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$570 to spend
$380in taxes
$50
5% = $50
Plan for lifeTM
How much am I allowed to contribute?
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Limit set by Canada Revenue Agency (CRA)
• 18% of your previous year’s earned income or the dollar maximum stipulated for the current year
Note: It is your responsibility to monitor your limits
Check your Notice of Assessment (only for RRSP and TFSA)
www.cra-arc.gc.ca
Plan for lifeTM
Start now, save more. Regular contributions.
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Same amount of money ($48,000), same investment return (5%), longer period of time… the savings almost double!
You simply earn more by putting aside smaller amounts of money over a longer period of time.
$100/month over 40 years
$200/month over 20 years
$148,856
$81,492
Plan for lifeTM
Pay yourself first.
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Marc
Take home payTax payable
Nancy
Take home payTax payableSavings program
$600
$400$510
$340
$150
Plan for lifeTM
Your group program
Review the “Summary of Main Provisions” located in your enrolment kit for more plan details and other important information.
Employee contributions
Employee contributions
Registered Retirement Savings plan (RRSP)
Tax-Free Savings Account (TFSA)
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Plan for lifeTM
What is an RRSP?
The advantages of a Group Registered Retirement Savings Plan (RRSP):
•A convenient, disciplined savings program through payroll deduction
• Immediate tax reductions
•Dollar cost averaging reduces investment risk
•Group buying power – favorable interest rates and lower investment management fees
•Spousal RRSP available (Income-splitting)
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Plan for lifeTM
Termination or retirement
• At termination or retirement:
– Contributions can be cashed out
– Can be transferred to another Registered Retirement Savings Plan (RRSP)
–Can be used to purchase an annuity, or a RRIF
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Plan for lifeTM
Tax-Free Savings Account (TFSA)
Capital gains and other investment income earned will not be taxed – even upon withdrawal!
•Contribution room starting at $5,000 per year and indexed to inflation and rounded to the nearest $500 on a yearly basis
•TFSA withdrawals can be re-contributed the following year with no penalty
•Carry forward unused contribution room for an indefinite period
•Choose from a variety of investment options much like those in your RRSP
•TFSA assets can be transferred to a spouse upon death
•Effective savings vehicle for both short term and long term goals
•The same low management fees as with your group retirement products
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Plan for lifeTM
Investments
Market-related funds
• Investments are not guaranteed
• Invest in a variety of securities
Fixed Income Funds
Balanced Funds
Equity Funds
Compound Interest Accumulator (CIA)
Daily Interest Account (DIA)
Guaranteed funds
• Little or no risk
• Lower rate of return over the long-term
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Plan for lifeTM
• Fixed Income Funds
-Invest in interest generating investments
-Treasury bills, bonds, mortgages
• Equity Funds
-Invest in equity or shares of corporations
-Canadian equity, American, International
• Balanced Funds
-Invest in a mixture of stocks and bonds
-Portfolio changes as market conditions change
Investments
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Plan for lifeTM
To find out more…
• Consult the back of your enrolment form for a complete list of fund options
• The “rates of return” and “fund summaries” can provide useful information to compare investment performance and any fees charged by the investment manager
Your Investment options
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Plan for lifeTM
Choosing your investments
It’s simple and easy…
You need to know two things to start investing
• Your investment period
• Your investor profile
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Plan for lifeTM
Your investor profile
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Plan for lifeTM
One page fund summaries
• Information on fund manager
• Objective, style of fund
• Top 10 holdings
• Portfolio composition
• Gross rates of return
• Fund summaries
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Plan for lifeTM
Avenue portfoliosTM
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• Automatically rebalanced within each portfolio
• Automatically risk-adjusted as you age
Investor profile
Inve
stm
ent
per
iod
Conservative >25 years
Conservative 20 - 25 years
Conservative 15 - 20 years
Conservative 10 – 15 years
Conservative <10 years
Moderate >25 years
Moderate20 - 25 years
Moderate15 - 20 years
Moderate10 – 15 years
Moderate<10 years
Aggressive >25 years
Aggressive20 - 25 years
Aggressive15 - 20 years
Aggressive10 – 15 years
Aggressive <10 years
Plan for lifeTM
Lifecycle movement
• Ensures that your chosen Avenue portfolio remains appropriate as your investment period shortens
• Activated when you pick Avenue portfolios but you can deactivate it at any time
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More than 25
20-25 years
15-20 years
Less than 10
10-15 year
Plan for lifeTM
Systematic Asset Rebalancing
• Rebalances your Avenue portfolio to ensure your level of risk always remains aligned to your investor profile
• Activated when you pick Avenue portfolios but you can deactivate it at any time
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Equity 50%
Fixed 50%
Plan for lifeTM
Picking your own investments
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Plan for lifeTM
The Monitored Avenue Portfolio Program (MAPP): once your particular investment solution is chosen it is then thoroughly monitored to ensure that there is no deviation in the portfolio’s long-term investment objective. Any changes triggered by the monitoring will be transparent and seamless for you.
Monitored Avenue Portfolio Program
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Plan for lifeTM
Spousal RRSP account
Employee account
Spousal account
Group RRSP
• Your contributions
• Your tax deduction
• Account in your name
• Your contributions
• Your tax deduction
• Account in spouse’s name
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Plan for lifeTM
Spousal RRSP account
Comparison of splitting retirement income
Income Taxes paid Money kept
Spouse #1 $50,000 $15,073 $34,927
Spouse #2 0 0 0
Income splitting
Spouse #1 $25,000 $ 5,096 $19,904
Spouse #2 $25,000 $ 5,096 $19,904
Total combined $50,000 $10,192 $39,808
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Plan for lifeTM
Your VIP Room and Retirement calculator
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Plan for lifeTM
Know your rights and responsibilities
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It’s your right to receive information about:
•the features of your group program
•the investment options available to you
•the tools and services we offer
It’s your responsibility to:
•use the information and tools provided by your employer and Standard Life
•seek information about the rules and features of your plan(s)
•choose contribution amounts and investments when and where applicable
•seek financial and legal advice
Plan for lifeTM
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Key sections of your form
Plan for lifeTM
Account statements
• Summary of your account, detailed information about your plans
• Includes your Retirement checkup TM
• Sent directly to your home or online in your VIP Room
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Plan for lifeTM
What you need to do?
• Read through the enrolment material provided
• Complete the investor profile questionnaire
• Choose an Avenue portfolio or pick your own À la carte funds
• Complete the enrolment process by the target date set by your employer and return the signed beneficiary designation form back to your employer who will forward it to Standard Life
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Plan for lifeTM
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