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Enrolling in your group program with Standard Life Express TM

Plan for life TM. Enrolling in your group program with Standard Life Express TM. Company name. Broker/Advisor and Logo Date. Broker/advisor name. xxxxxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxx. Key topics. Enrolling today Contributions Investments

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Enrolling in your group program with Standard Life Express TM

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  1. Plan for lifeTM Enrolling in your group program with Standard Life ExpressTM

  2. Company name Broker/Advisor and LogoDate

  3. Broker/advisor name • xxxxxxxxxxxxxxxxxxx • Xxxxxxxxxxxxxxxxxxx • xxxxxxxxxxxxxxxxxxx • xxxxxxxxxxxxxxxxxxx

  4. Key topics • Enrolling today • Contributions • Investments • Guidance • Questions and answers

  5. How do you feel about your retirement?

  6. Did you know? 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).

  7. A dollar a day $20,000 $15,000 $10,000 $5,000 $0 $17,701 $8,810 $3,351 *The calculations are based on 5% rate.

  8. How much do I need? • 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)

  9. 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. 5% = $50

  10. How much am I allowed to contribute? • 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

  11. Start now, save more. Regular contributions. • $100/month over 40 years $148,856 • $200/month over 20 years $81,492 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.

  12. Pay yourself first. $150 $400 $510 $600 $340

  13. Your group program Deferred Profit Sharing Plan (DPSP) Registered Retirement Savings plan (RRSP) Employee contributions Employer contributions Review the “Summary of Main Provisions” located in your enrolment kit for more plan details and other important information.

  14. 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)

  15. What is a DPSP? • A Deferred Profit Sharing Plan (DPSP): • A simple, flexible arrangement whereby your employer pays contributions based on the company’s profits • Employee does not contribute to the plan • Group buying power – favorable interest rates and lower investment management fees • Flexibility at termination and retirement – vesting to occur no later than 24 months after participation began. No locking-in rules. • A wide variety of investment funds

  16. Termination or retirement • At termination or retirement: • Contributions can be cashed out (for DPSP, if vested) • Can be transferred to another Registered Retirement Savings Plan (RRSP) • Can be used to purchase an annuity, or a RRIF

  17. Investments • Guaranteed funds • Little or no risk • Lower rate of return over the long-term Compound Interest Accumulator (CIA) Daily Interest Account (DIA) • Market-related funds • Investments are not guaranteed • Invest in a variety of securities Fixed Income Funds Balanced Funds Equity Funds

  18. Investments • 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

  19. Your Investment options 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

  20. Choosing your investments • It’s simple and easy… • You need to know two things to start investing • Your investment period • Your investor profile

  21. Your investor profile

  22. One page fund summaries • Information on fund manager • Objective, style of fund • Top 10 holdings • Portfolio composition • Gross rates of return • Fund summaries

  23. Avenue portfoliosTM Investor profile • Automatically rebalanced within each portfolio • Automatically risk-adjusted as you age Conservative >25 years Moderate >25 years Aggressive >25 years Conservative 20 - 25 years Moderate 20 - 25 years Aggressive20 - 25 years Conservative 15 - 20 years Moderate 15 - 20 years Aggressive15 - 20 years Investment period Conservative 10 – 15 years Moderate 10 – 15 years Aggressive10 – 15 years Conservative <10 years Moderate <10 years Aggressive <10 years

  24. 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 More than 25 20-25 years 15-20 years 10-15 year Less than 10

  25. 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

  26. Picking your own investments

  27. Monitored Avenue Portfolio Program 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.

  28. Spousal RRSP account Group RRSP Employee account Spousal account • Your contributions • Your tax deduction • Account in your name • Your contributions • Your tax deduction • Account in spouse’s name

  29. Spousal RRSP account

  30. Your VIP Room and Retirement calculator

  31. Know your rights and responsibilities • 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

  32. Online enrolment

  33. Online enrolment

  34. Online enrolment

  35. Online enrolment

  36. Online enrolment

  37. Online enrolment

  38. Online enrolment

  39. Online enrolment

  40. Online enrolment

  41. Online enrolment

  42. Online enrolment

  43. Online enrolment

  44. 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

  45. 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

  46. Questions? retirement.solutions@standardlife.ca www.standardlife.ca 1-800-242-1704

  47. All digital assets such as images, sounds, footage and fonts contained in which were created by, licensed to or owned by Standard Life Canada and its affiliates are subject to license restrictions. Use of these assets outside of their original authorized purpose is prohibited without the written consent of the GDS, and may involve the disbursement of additional licensing fees. Failure to obtain this approval may result in legal action. Any additional usage of the asset from what was disclosed should be discussed with GDS to assure that the asset rights permit this use. GDS must be advised before transferring assets such as images, sounds, footage and fonts to a third party regardless of if they are original to Standard Life or purchased from an online bank. Questions?  GDS.DigitalAssetManagement@standardlife.ca

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