Group plans employer guide
Mike Sukhram, MBA, FMA, PFP?, CIM?, CEA
Financial Advisor helping business owners with their investment and retirement plans
77% of Canadians would consider changing jobs for better retirement support
3 reasons why every organization should have a group retirement plan
Choosing a combination Group RRSP and Deferred Profit Sharing Plan can result in tax savings!
Group retirement plans
Group RRSP - Group Registered Retirement Savings Plan
Plan sponsor contributions to a Group RRSP are a taxable benefit to members. Taxable income is increased but offset by a tax receipt. However, payroll taxes are also increased and can impact both the plan sponsor and the member.
Additional features of a Group RRSP:
DPSP - Deferred Profit-Sharing Plan
Unlike a Group RRSP, a plan sponsor contribution to a DPSP is not a taxable benefit to members. Therefore, it does not increase payroll taxes.
Payroll taxes include CPP; Employer Health Tax; EI; Worker’s Compensation.
Contributions must be made from profits and/or retained earnings.
Additional features of a DPSP:
Combination Group RRSP / DPSP
With a Group RRSP for member contributions and a DPSP for plan sponsor contributions, everyone wins. Members contribute to a Group RRSP, affording them the flexibility they need to manage their retirement plan. Plan sponsor contributes to a DPSP, reducing their payroll taxes and enhancing restrictive features if desired.
The positive impact of Group RRSP/DPSP:
Plan sponsor
Member
领英推荐
Supplemental plans:
3 reasons why a financial advisor should handle your Group Retirement Plan
1. Advice
Financial advisors are qualified professionals
A qualified financial advisor ensures that all participating members – especially those with little or no investment experience – receive suitable and prudent guidance when investing their savings. A financial advisor will also conduct a periodic review of the investment mix and coordinate other registered and non-registered long-term savings at your request. By law, investment advice is to be dispensed only by individuals licensed by the provincial securities commissions.
2. Communication
Keeping members informed
More than simply providing investment advice, your financial advisor is available to answer questions about your members’ personal investments, account statements and any financial matter that concerns them. Because the financial advisor is familiar with the members’ personal situations, they can present a variety of options to help meet their individual objectives. Your advisor will keep you up to date on important changes to the group plan’s investments, various regulatory changes that could impact the plan and much more.
3. Education
Educated investors make great clients
In addition to counselling individual investors, a financial advisor is a valuable resource to help educate plan sponsors on the various group plan options available and the benefits associated with each. For investors, financial advisors provide education on a wide range of investment topics for both novice and more sophisticated investors. Many financial advisors will tell you that the more educated an investor is about their investment selection, the more comfortable they are over the long term.
3 reasons why Carte Wealth Management Inc. should be your investment management and record-keeping service provider.
1. Ranked the #1 Independent Investment Dealership
Our firm has been ranked the top independent dealership across Canada for the last 3 years in a row by the Investment Executive. We work with a number of leading investment firms to provide our clients with a broad line-up of domestic and foreign funds across all asset classes and types.
2. Quality record-keeping and competitively-priced plans
Our partners provide comprehensive account services for all Group Retirement Plans. They provide both plan sponsors with contribution reporting and members with regular statements detailing contributions, account positions and much more. Our preferred partners for Group Retirement Plans assists with the preparation and submission of certain provincial or federal government filings that may be applicable to a particular Group Plan. Our partners provide a wide range of account services and professional investment management at a competitive price.
3. We provide solutions for you to be successful
At Carte Wealth Management Inc. and Carte Risk Management Inc., we understand that our clients place value in solutions, not products.
Your employees are seeking an advisor whom they can trust to coordinate their financial needs into a cohesive financial plan. We will support you and your employees, whether you need full strategic planning services or if you just need us to open some doors.
Carte Wealth Management Inc. is a mutual fund and exempt market products dealer in the provinces of Alberta, British Columbia and Ontario and a mutual fund dealer in the provinces of Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Prince Edward Island, Quebec and Saskatchewan, providing clients with mutual fund investment solutions. Carte Risk Management Inc. is an insurance managing general agency licensed in the province of Ontario, providing clients with life insurance products and services as well as segregated fund investment solutions.
* Mutual Funds and ETFs provided through Carte Wealth Management Inc. **?Insurance products such as?segregated funds, life, disability, and critical illness insurance are offered through Carte Risk Management Inc.