The Cadillac of RRSPs
The Advocate, Wednesday February 7, 1996
I'm sure that most of my readers have an RSP. In order to diversify, maybe you have several with different financial institutions. recordkeeping can often be burdensome and difficult. How would you like to simplify this and make it easier by putting your assets into one RSP without losing the flexibility, diversity, and control you desire?
A Self-Directed RSP may be what you need. It is an RSP that can hold several different investments including stocks, bonds, limited partnerships, venture capital corporations and several different mutual funds. This can include up to 20 per cent of your assets invested in international mutual funds that invest outside of Canada such as the Templeton Growth Fund. The limit may be raised next year to 30 per cent. This RSP gives you control of your assets with regular reports listing all of them and the total value of their worth including the percentage gains of your mutual fund holdings.
With this flexible retirement tool, you also get personalized service. Along with a customized RSP, you get the advice from a qualified professional to help you make intelligent informed decisions about your investments. An independent financial planning organization that is not part of an institution is best suited to give you unbiased advice. They will usually take the initiative to come to you to inform you and remind you it is time for a review, looking after your interests and keeping you abreast of the latest tax changes, tax advantages and tax savings programs.
Another important part of your retirement program is how and who will set up your retirement options. How do you go about buying an annuity or a RIF? Along with a Regal RRSP, these are services we supply. Regal will help you unwind your RSP (it must be matured by the end of the year when you reach age 71).
The following options are available:
1. Guaranteed obtainment of the best annuity program available at the time of retirement.
2. Retirement Income Funds (RIFs) which offer (a) choice of any income you choose (subject to minimums) to give you an increasing income each year if you wish to keep pace with or move ahead of inflation costs (b) payments increasing to age 90 or to your estate (c) control of your assets, in that you can change the make up of your assets in your RIF to suit your needs and wants at any and all times you may choose.
3. Systematic de-registration of your RSP through to age 71, with proceeds being invested to give you a monthly income that include (a) preservation of your estate (b) choice of any income or lump sum payment at any time (c) take an increasing income each year in order to meet increasing costs brought on by inflation or increasing needs, (d) having your monthly income (withdrawal plan) coming to you with little tax liability, (e) complete control of your assets at all times. (This retirement option 3 is available through independent financial dealers). See my article "Tax Free withdrawals From your RRSP," February 1995, or contact me for a copy.
All this can be administered through a Self-Directed RSP. Fees are modest because of the savings resulting from a central computerized administration. A single administration fee covers all eligible mutual funds. Without these services you would be required to pay for each fund company separately. This is one of the finest RSP programs available. I like to call it the Cadillac of RSPs.
Maybe this is the year to update your RSP to take advantage of current legislation and investment opportunities.
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