- Minimum $500, non-redeemable
- A safe and important component of any investment portfolio
- Interest compounds on each anniversary date and notices are provided prior to maturity
Time goes faster than you think...
Saving for retirement can never happen too soon. A Registered Retirement Savings Plan (RRSP) is an essential part of a rounded portfolio that ensures you have a secure financial future.
Tandia has a number of solid RRSP investment options available.
Tandia has a range of RRSP products to meet all your financial needs.
RRSP TERM DEPOSITS - 1 TO 5 YEAR
RRSP TIERED SAVINGS ACCOUNT
- A registered savings plan account with no minimum deposit
- Tiered interest - the higher your balance, the higher your interest
- A great account to accumulate funds in through payroll deductions or automatic transfers
- Funds may be withdrawn/transferred at any time (subject to applicable withholding taxes)
PAY DAY RRSPS
- Minimum $1,000 commitment (savings goal)
- You can take as long as a 12 month period to accumulate your goal
- Funding of the RRSP account is paid by payroll deduction or automatic transfer from an account
- 1 year term interest is calculated on the daily balance and paid at maturity
SHORT TERM RRSP TERM DEPOSITS
- 3, 6 and 9 month terms, minimum $1,000, non-redeemable
- A good 'holding' vehicle for your investment while you wait to see if rates improve or to assist in timing deposit maturity dates to better meet your needs
INDEX LINKED RRSPS
About our Index Linked Term Deposits
An Index Linked Term Deposit presents a safe way to participate in Canadian Equity markets, with a return based on the average growth of the major market indices. Your principal is guaranteed, yet you can benefit from the potential for a higher return.
Features
- Minimum $500, non-redeemable
- No commissions, management or administration fees
- Index Linked Term Deposits are RRSP and TFSA eligible
- Deposits qualify for coverage by the Deposit Insurance Corporation of Ontario
STEP RRSPS
A Step Term Deposit is an excellent investment alternative in times of low interest rates, as you are assured that each year your interest will increase. As with all our term deposits, the principal and return is guaranteed and it qualifies for deposit insurance protection.
At Tandia Financial Credit Union, eligible deposits in registered accounts have unlimited coverage through the Financial Services Regulatory Authority (FSRA).
When is the RRSP contribution deadline?
You can contribute to your RRSP at any time, but to lower your income tax for the 2022 tax year, make your contributions no later than March 1, 2023.
What is a RRSP?
A RRSP allows you to invest money during your peak earning years to build up a tax sheltered retirement fund.
-
A RRSP plan is designed to encourage Canadians to save for their retirement.
-
Contributions to a RRSP are tax deductible, meaning that when you make a contribution to a RRSP, you are reducing your taxable income by the amount of money you contribute to the plan.
-
Each year you will receive a Notice of Assessment from the Revenue Canada. You are allowed to contribute 18% of gross income less any pension contributions to a RRSP.
5 tips for your RRSP
With the cost of living on the rise and government support declining, it's now more important that we start taking control of our financial futures. The key to saving for retirement is simply to start doing it.
1.) Start small
Small amounts quickly add up and help build good saving habits. Think about setting up regular payroll deductions, this way the money comes directly out of your pay before you can see it or spend it.
2.) Invest early
Invest early for compound growth. Investing in your RRSP well in advance of retirement means that your money has more time to benefit from tax-sheltered growth.
3.) Do the math
We’re all living longer and our standard of living keeps rising. Take the time to figure out if your retirement savings will give you the lifestyle you want. It's important to set a goal and know how much you will need.
4.) Put your tax refund to work
As tempting as it might be to spend your tax refund, reinvesting it will work to your long-term advantage of reaching your retirement goals.
5.) Speak with a Financial Advisor
Maintaining a regular savings and budgeting plan can be difficult. Having the right support from a financial advisor can help you stay on track in meeting your retirement goals.
Things to avoid with RRSPs
You want to avoid taking money from your RRSP. If you withdraw money from your RRSP while you're working you'll be highly taxed based on your marginal tax bracket because your RRSP money is considered income when you withdraw it. The idea of an RRSP is to withdrawal these funds in your retirement years slowly when your tax rate is typically lower.
There are some special exceptions for when you can take money out of your RRSP such as buying your first home or going back to school. However, keep in mind - you do have to pay the money back into your RRSP - otherwise you'll end up being taxed.
Let's get started
With the right planning, retirement doesn't have to be scary. We are here to help you build your goals and ensure you have a strong and secure financial future. Visit a branch, book an appointment or call our Members Solution Centre at 1-800-598-2891. Let us help you grow your wealth.
Registered Retirement Income Funds (RRIFs) are a popular form of retirement income. While you do not contribute directly to a RRIF, funds can be transferred from a RRSP, another RRIF, a Registered Pension Plan, or a commuted RRSP annuity.
At age 71, all RRSP investments must be converted to a RRIF or annuity, or cashed out.
RRIFs are similar to a RRSP with the exception that you must take some taxable payments from your RRIF on an annual basis. You choose the payment level as long as it meets the minimum levels set out by the government.
Tandia has a range of RRIF products to meet all your financial needs.
RRIF INVESTMENTS - 1 TO 5 YEAR
- Minimum $500, non-redeemable
- A safe and important component of any investment portfolio
- Interest compounds on each anniversary date and notices are provided prior to maturity
SHORT TERM RRIF INVESTMENTS
- 3, 6 and 9 month terms, minimum $1,000, non-redeemable
- A good 'holding' vehicle for your investment while you wait to see if rates improve or to assist in timing investment maturity dates to better meet your needs
STEP RRIFS
A Step Term Deposit is an excellent investment alternative in times of low interest rates, as you are assured that each year your interest will increase. As with all our term deposits, the principal and return is guaranteed and it qualifies for deposit insurance protection.
TIERED VARIABLE RRIF ACCOUNT
- No minimum deposit
- Tiered interest - the higher your balance, the higher your interest
- Funds may be withdrawn/transferred at any time (subject to applicable withholding taxes)
At Tandia Financial Credit Union, eligible deposits in registered accounts have unlimited coverage through the Financial Services Regulatory Authority (FSRA).
RRIF tips and planning
An RRSP helps you save for retirement through annual contributions, a RRIF helps fund your retirement through annual withdrawals.
You can convert your RRSP to a RRIF at any time before the end of the year in which you turn 71. You’re required to start drawing RRIF income by the end of the calendar year in which you turn 72.
For maximum tax deferral benefits, you want to withdraw as little as possible from your RRIF for as long as possible. Withdrawing only the mandatory minimum amount from your RRIF allows your funds the opportunity to increase in value and last longer.
You can choose to take a lump sum from your RRIF each year, but it’s not the only option: you can choose any schedule that's right for you – weekly, monthly, quarterly or yearly.
Even if you don’t need your RRIF income immediately, it’s important to plan ahead and maximize your withdrawals so you don’t pay more tax than you need to.
Contact or book an appointment with one of our Financial Advisors. Let us help you set up a retirement plan that works for you.
Taxable income and RRIFs
Your taxable income (including RRIF withdrawals) can impact your eligibility for certain government benefits, such as Old Age Security. Too much income could mean a reduction of some of these benefits, so be sure to carefully plan the timing and amount of your RRIF withdrawals.
If you don't need the money from your mandatory RRIF withdrawal, and have contribution room, deposit the funds in your tax-free savings account (TFSA). Inside the TFSA they will grow tax-free, and all withdrawals are tax-free.
A beneficiary will not have to pay tax on any amount paid out of the RRIF if it can reasonably be regarded as having been included in the deceased annuitant's income.
You'll receive a T4RIF slip if you received payments from your Registered Retirement Income Fund (RRIF) during the year.
Do you have what you need?
Our Retirement Planner Calculator determines the amount of savings that you'll need to retire comfortably. By flagging any shortfalls or surpluses, the Calculator outlines the savings required to reach your financial goals for retirement. Visit a branch, book an appointment or call our Members Solution Centre at 1-800-598-2891.
Why the fingerprint?
Am I unique? We are here to tell you that yes you are and so are your finances! You may or may not have noticed a lot of our branding uses a fingerprint image. Well, that’s because we know how unique you truly are, and we want to make sure we treat your finances the same way.
Each person’s fingerprints are unique and at Tandia we realize your financial picture is as well. We want to celebrate your uniqueness and ensure we find the perfect fit of products and services that work for you.
Wealth Advice
Advice you can trust
Whether you’re saving for the future, preparing to buy your first home, or planning and protecting your estate. Tandia's suite of Wealth Service options can help you build a portfolio that’s tailored to your unique financial goals.
Listen to our Podcast
Listen to our weekly Podcast that answers all your burning questions about money. We’re here to make money more relatable, with take-action tips to help you create the life you want.
We will help you tackle those financial problems, look at your goals and help you define your financial journey. Start listening!
We are here for you
Get in touch with us at any time, whether it’s a question about our services or a comment on how we can do things better. Your voice is number one at Tandia.
To report a lost or stolen MEMBER CARD® debit card during regular business hours, call 1-800-598-2891 after hours please call 1-888-277-1043.
Copyright © 2023 Tandia Financial Credit Union Limited. All rights reserved.