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Prairie Pride Credit Union Registered Options
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Registered Retirement Savings Plan (RRSP)
 Prairie Pride Credit Union offers a variety of options for investing your RRSP. As with all deposits at the Credit Union there is an Unlimited Guarantee of funds through the Deposit Guarantee Corporation.
A Registered Retirement Savings plan is a government approved plan that allows you to save money for your retirement. During your peak earning years you can invest to build your retirement fund while saving money on your taxes. Interest earned on these savings is not taxable until the funds are withdrawn. Any interest earned is compounded and the growth of an RRSP increases rapidly over the years.
Anyone who has "earned income" subject to Canadian taxation, including non-residents, may contribute to an RRSP. You can also make a part of or all of your contribution to a plan in your spouse's name. You as the contributor still benefit from the tax deduction. Limits to RRSP contributions are based on "earned income" of the previous year. You can also carry forward any unused portions. This information is on your Room Statement from
Canada Revenue Agency.
Registered Retirement Income Fund (RRIF)
The first stage of an RRSP is to accumulate retirement savings. The next stage is to provide retirement income. Your accumulated savings may be invested in a variety of options to
provide a retirement income eg. RRIF. The retirement income payments are taxed each year as you receive them, thus spreading the taxation of your accumulated savings over your retirement.
Prairie Pride Credit Union offers the following Registered Retirement Income Funds for your convenience:
- Variable Plan
Rates fluctuate with the market. This plan is open and can be changed to a locked in interest plan at any time.
- Fixed Plan
Available investment periods of 1-5 years and the interest rate fixed for the length of term chosen.
Registered Retirement Income Options
Locked-In Retirement Income Fund (LRIF)
The LRIF operates as a Registered Retirement Income Fund with the further requirement that the funds are locked -in permanently to ensure lifetime income. This plan allows you to control your investments for life, while providing some flexibility in determining income schedule. Some additional benefits are listed below:
- Limited ability to select payments that meet retirement budget needs early in retirement.
- Allows you to create and maintain an estate.
- Ability to transfer a LRIF from one issuer to another.
Life Income Funds (LIF)
A LIF acts as a RRIF from the year it is established until the member turns age 80 at which time it must be converted to a Life Annuity. The LIF can be converted to a Life Annuity prior to age 80.
The primary benefit of a LIF is that it provides you with some of the flexibility of a RRIF early in retirement and guarantee a fixed income later in life.
Additional benefits are listed below:
- Ability to transfer a LIF from one issuer to another.
- Ability of preserving capital and using the LIF as a more effective estate builder.
- Ability to delay the purchase of an annuity until a time when perhaps annuity yields are more favourable.
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Grow your retirement savings for a brighter future.
A Registered Retirement Savings Plan is your best opportunity to save for a worry-free retirement. An RRSP gives you the benefit of a tax deduction today, and tax-sheltered compounded growth for tomorrow. Combined with the most important ingredient of all, time, these benefits work their magic and can multiply your investment into a sizeable retirement nest-egg.
An Ethical Funds® RRSP gives you solid financial management, competitive returns, and the knowledge that your money is working to improve the quality of life for everyone.
The Ethical® Advantage
Ethical Funds is committed to social change and fairness. We listen to you, and reflect your values through a unique combination of social and environmental screening and shareholder action. When you invest with Ethical Funds, you get a voice where it counts - in the corporate boardroom. The combined power of our unitholders helps us to raise the bar for corporate, social and environmental performance. Shareholder action strategies include dialogue with company management, proxy voting, and filing shareholder resolutions.
For more information, contact your Mutual Funds Investment Specialist or visit www.ethicalfunds.com
Mutual funds are offered through Credential Asset Management Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Unless otherwise stated, mutual fund securities and cash balances are not
covered
by the Canada Deposit Insurance Corporation or by any other government deposit
insurer that insures deposits in credit unions. Mutual funds are not
guaranteed, their values change frequently and past performance may not be repeated. Ethical Funds are sold in all provinces and territories across Canada.
®Ethical
and Ethical Funds are registered marks owned by Ehtical Funds Inc. and are used
under licence.
®Credential is a registered mark owned by Credential Financial
Inc. and is used under licence
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