Your investment planning advisor at CDSPI Advisory Services Inc. can help devise investment strategies for your family’s financial goals such as retirement savings. For example, your advisor can show you how incorporating a spousal RRSP into your financial plan could help your household save money now and at retirement.
Spousal plans were introduced to help one spouse create a source of retirement income for the other, who might not be able to contribute to an RRSP of his or her own due to a lack of earned income or a low level of income. The contributing spouse receives the tax deduction, but the registered owner of the plan is the spouse in whose name the contributions are made.
While new legislation allows pensioners to divide their pension income with their spouse for tax purposes, the splitting of income from RRSP annuities or RRIFs is available only if you are 65 or older. However, couples may be able to achieve income splitting at an earlier age by establishing a spousal RRSP.
In terms of more immediate goals, such as a home purchase, a spousal plan could help you and your spouse to save for a larger home down payment. The Home Buyers’ Plan allows individuals to withdraw $25,000 tax-free from their RRSP to purchase a home. Therefore, a couple can withdraw a total of $50,000.
Your investment planning advisor can also suggest other ways to invest for retirement, including through investment accounts, tax-free savings accounts (TFSAs) and individual pension plans (IPPs), and help you balance risk with returns and minimize taxes.
As your family’s wealth grows, it may be time to consider private wealth management. Your investment planning advisor can help you determine if this solution is right for you. With the private wealth management service, a designated portfolio manager consults on a personalized solution for you and works with the investment research committee on all the portfolio decision-making — providing you with the freedom to focus on other matters. You receive regular updates through transaction confirmations, monthly account statements and quarterly portfolio valuations, and meetings with your advisor can be scheduled.