individual pension plans
DESCRIPTION
One reason people look for advice on financial planning in Cobourg is that they have questions about individual pension plans. An individual pension plan is a registered pension plan, sponsored by an employer and has defined benefits. It is generally indexed to inflation and guarantees a specific level of income when you retire. It has various advantages over RRSP's. One of them is that your contributions can be larger. In addition, the assets in an IPP are protected from creditors and can be shared with your spouse. Your financial advisor can provide all of the details on what is and is not included in an IPP. Should you be considering an Individual Pension Plan? That is a question that can only be answered after looking at your financial situation and doing a thorough analysis of your assets, liabilities, life situation and your goals. For a comprehensive analysis of your situation, one that takes into account your current circumstances, approaching milestones and actual planning requirements, you need to talk to a financial planner. Ken Zawalykut has been working in this field for over 30 years. he always emphasizes the importance of planning. And he has the experience, training and background to be able to help you come up with a personal, individualized strategy that will get you where you want to go. Ken can help you meet your need for effective financial planning in Cobourg, Port Hope, and area. Ken Zawalykut - Financial Advisor 24 Covert Street #201 Cobourg ON K9A 2L6 Canada http://www.youtube.com/watch?v=5sE7Dp4UHZMTRANSCRIPT
Ken Zawalykut | www.kenzawalykut.caEmail: [email protected] Phone: 905.372.0800
Individual Pension Plans
What is an IPP?
An Individual Pension Plan (IPP) is a registered, defined-benefit pension plan sponsored by an employer. It is set up for a single individual and spouse. An IPP seeks to guarantee a certain level of income in retirement
Key Benefits of An IPP
Allows for larger contributions compared to an RRSP. Provides pre-determined retirement benefits. Benefits are indexed to increase with inflation. Assets are protected from creditors. Pension benefits may be split with spouse.
Additional Flexibility
A member can retire at 65.
A plan member can begin receiving benefits as early as 55.
Retirement may be extended to the end of the year in which the member turns 71.
An IPP can be terminated at any time, with assets being transferred to the members locked in RRSP.
Possible Disadvantages
IPP assets must be used for lifetime retirement pension.
Cannot be de-registered unless member is in ill health or leaves Canada.
There are some additional costs, however additional tax savings outweigh the costs.
How Are Benefits Paid?
A guaranteed life annuity must be purchased form a life insurance agency. Assets may be transferred to a Life Income Fund (LIF) or a Locked In RIF (LRIF). Assets may be used to pay pension, and after death remaining assets go to spouse or estate.
….Call or email today
Ken ZawalykutFinancial Advisor
IPC Securities Corporation24 Covert Street, Suit 201
Cobourg, ON K9A 2L6
Phone: 905.372.0800Email: [email protected]
Website: www.kenzawalykut.ca
For a Comprehensive Look at Your Financial Planning Needs…
Trademarks owned by Investment Planning Counsel Inc. and licensed to its subsidiary corporations. Investment Planning Counsel, is a fully integrated Wealth Management Company. Mutual Funds available through IPC Investment Corporation and IPC Securities Corporation. Securities available through IPC Securities Corporation, a member of the Canadian Investor Protection Fund. Insurance products available through IPC Estate Services Inc.