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Dedicated exclusively to the CF Community… since 1969!

Dedicated exclusively to the CF Community… since 1969!. SCAN: Transition & Retirement Planning Ottawa 20-21 October, 2009 Presenters: Paul Bazinet and Paul Kellar. Agenda. Who we are What we do Insurance: while serving and after Financial Planning: present & future.

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Dedicated exclusively to the CF Community… since 1969!

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  1. Dedicated exclusively to the CF Community… since 1969!

  2. SCAN: Transition & Retirement Planning Ottawa 20-21 October, 2009 Presenters: Paul Bazinet and Paul Kellar

  3. Agenda • Who we are • What we do • Insurance: while serving and after • Financial Planning: present & future

  4. Chief Defence Staff (CDS) Organization CDS Director General Personnel Family Support Services (DGPFSS)

  5. Who we are Highly qualified financial professionals - paid salaries not commissions. We provide financial solutions tailored to the unique lifestyle of the Canadian Forces (CF). Easily accessible – 18 offices on major Bases/Wings/Units.

  6. SISIP FS Financial Planning Insurance Financial Counselling Canadian Forces Personnel Assistance Fund (CFPAF) Education Our financial solutions:

  7. Insurance

  8. Also known as Income Replacement Insurance. Automatic coverage since April 1982. SISIP FS Long Term Disability (LTD)

  9. SISIP FS LTD(brief) Medically released members provided with replacement income: • 75% of salary at date of release in combination with: • CFSA, CPP/QPP, earned employment income, VAC monthly pension income. • 15% paid by you, 85% Treasury Board Non-service related. 100% Treasury Board service related. • Provides access to the Vocational Rehabilitation Program. • Coverage terminates upon release.

  10. Vocational Rehabilitation Program (VRP) • Prepares former CF members to become gainfully employed. • Training builds on existing skills. • Available even if your present income has reduced your LTD benefit to $0. • Start up to 6 months prior to release & 24 months after.

  11. Vocational Rehabilitation Program (VRP) Questions? Alain Guillemette, CD • Rehabilitation Counsellor 819-643-6337 1-866-799-6337

  12. Accidental Dismemberment • Accidental Dismemberment Insurance Plan (ADIP) • Attributable to military service • No cost to members • Coverage provided automatically • In accordance with the Schedule of Benefits • Coverage Terminates upon release.

  13. SISIP FS Optional Group Term Insurance OGTI - Regular Force RTIP - Reserve Force IRM - Released Members • Up to $400,000 for members & spouses. • Automatic coverage $10,000 per dependent child. • Accidental Dismemberment (AD) benefit to a maximum of $250,000 for injury not attributable to military service.

  14. Insurance for Released Members (IRM) You must apply to continue your coverage: • If within 60 days of release: • No proof of insurability required. • If after 60 days: • You must re-apply Payments from pension or bank account. Includes AD for member and spouse. Includes life and AD benefits for dependent children. • Coverage terminates at age 75.

  15. Why Life Insurance? • Income Replacement to: • Maintain your lifestyle • Pay for children’s education • Continue paying / pay off: • Mortgage • Line of credit • Credit cards • Personal loan • Student loan • Car

  16. How much life insurance do I need?

  17. Life Insurance Cycle

  18. SISIP FS Needs Analysis • We take into consideration: • mortgage, loans, debts, • dependents, education costs, • RRSP’s, other savings, • change in marital status, • retirement, new career, • SDB, CPP, severance, etc., • CFSA, VAC pensions, • final expenses, • Inflation, • You receive a printed Needs Analysis.

  19. OGTI-IRM: 5 year Renewable Term, per $10,000 unit

  20. Advantages • Low rates. • No charge for dependent children • Accidental Dismemberment benefit. • No exclusion for war, dangerous sports, etc.

  21. How Insurance Representatives can help: Available to assist you determine the amount of life insurance coverage you should have by conducting a SISIP FS Insurance Needs Analysis. Knowledgeable with respect to military benefits & pension, investments, and taxation. Available to help with the completion of forms.

  22. Financial Planning

  23. Financial planning A process that encompasses your entire financial situation to meet your life goals.

  24. Why Financial Planningis important: • Personal Money Management • Reducing Credit Cost • Risk Management and Insurance • Transition and Retirement Planning • Tax Planning

  25. Financial planning process Clarify situation and collect all data. Identify goals and objectives. Identify financial opportunities. Review recommendations / solutions. Implement a strategy. Conduct periodic reviews.

  26. Where to get advice Bank Broker Accountant Independent advisor

  27. SISIP FS Financial Planners • Education • Experience • Examination • Ethics

  28. Comprehensive advice regardless of size of investment portfolio. Pension Projections and strategic planning to reduce income taxes. Asset Allocation / Investment choices. Access to open accounts, RRSPs, TFSAs, RRIFs, RESPs. Advice on lump sum amounts. Income tax return preparation. SISIP FS Financial Planning Offer

  29. Release Planning • Retirement Leave and Release Date: • Pension effect (amount, penalties, indexation). • Cashout of leave effect. • Tax implications. • CRA • Severance / Rehabilitation Leave

  30. Investment Choices • Your portfolio should reflect your risk comfort zone • You should review your portfolio regularly

  31. Registered Retirement Savings Plan (RRSP) An RRSP is a savings plan to encourage Canadians to save money for retirement. The investment and the interest earned on the RRSP is sheltered meaning it will not be taxed as long as the funds remain in the plan. An RRSP allows you to defer paying tax on funds you contribute. You get a tax deduction for the amount you contribute.

  32. Tax Free Savings Accounts (TFSA) The TFSA will allow Canadians to set money aside in eligible investment vehicles and watch those savings grow tax-free throughout their lifetimes. TFSA savings can be used to purchase a new car, renovate a house, start a small business, take a family vacation, etc.

  33. Registered Retirement Income Fund (RRIF) A RRIF is a tax-deferred retirement plan that individuals use to generate income accumulated from the savings in their RRSP. It is mandatory to either withdraw all funds from an RRSP plan or convert the RRSP to an RRIF or life annuity year in which an individual turns 71. You must withdraw a minimum amount from your RRIF every year based on a formula that includes your age and the amount of capital.

  34. TFSA vs RRSP (same tax bracket) TFSA RRSP Pre-tax income $5,000 $5,000 Tax (40%) ($2,000) $0 ____________________________________________ Net contribution $3,000 $5,000 Growth @ 6% 20yrs $9,621 $16,035 Tax upon withdrawal (40%) $0 $6,414 ____________________________________________ Net cash $9,621 $9,621

  35. TFSA vs RRSP (lower tax bracket) TFSA RRSP Pre-tax income $5,000 $5,000 Tax (40%) ($2,000) $0 ____________________________________________ Net contribution $3,000 $5,000 Growth @ 6% 20yrs $9,621 $16,035 Tax upon withdrawal (25%) $0 $4,009 ____________________________________________ Net cash $9,621 $12,026

  36. TFSA vs RRSP (higher tax bracket) TFSA RRSP Pre-tax income $5,000 $5,000 Tax (40%) ($2,000) $0 ____________________________________________ Net contribution $3,000 $5,000 Growth @ 6% 20yrs $9,621 $16,035 Tax upon withdrawal (50%) $0 $8,018 ____________________________________________ Net cash $9,621 $8,018

  37. So? Which one? • TFSA - most likely better if your tax rate will be higher on withdrawal • RRSP - most likely better if your tax rate will be lower on withdrawal • TFSA - no Clawback on OAS/GIS as a result of withdrawals • TFSA – withdraw tax free anytime & can re-contribute in following years

  38. CF Group Retirement Savings Plan (CFGRSP) A “do it yourself” Retirement Savings Plan designed for the CF community! • Guaranteed investment accounts have a .60% interest rate bonus. • Convenience of pre-authorized contributions or payroll deduction. • Access to wide range of investment vehicles. • Preferred interest rates & lower investment management fees.

  39. SISIP FS Professional Services • Unbiased • Certified Financial Planners • Confidential • Accessible

  40. Fees • $5 per month + GST if your rank is: Recruit to Master Corporal, or, Officer Cadet to Lieutenant • All others, $10 per month + GST • Paid by pay allotment while serving and EFT, cheque, VISA, or MasterCard after release • All clients get one free basic tax return + E-filing (value $50 - $70)

  41. Financial Advice • Under the New Veterans Charter, disability awards, detention benefits and death benefits are lump sum amounts. If the payment is $12,500 or more, some, or all, of the fees related to this advice may be paid by Veterans Affairs Canada, up to a maximum of $500. • Our fees are $125.00 per hour.

  42. How Financial Plannerscan help: We help people through a series of financial evaluations to determine their current situation and help them plan for their future needs. Knowledgeable with respect to military benefits & pension, investments, and taxation. We offer short-term, no-risk, no- commission, and no-pressure investment products where people can “park” their money until needs arise or other decisions are made.

  43. Financial contribution to the CF community 2008 $ 5,012,087.00 Moral & Welfare Unit Grants - $2,500,000.00 Grant to North Bay Community Centre $800,000.00 CF Youth Program $512,232.00 Grant to Winnipeg Day Care Centre $200,000.00 Other - $999,855.00

  44. SISIP FS Ultimate Goal Do what is best to address the financial needs of CF members and their families by providing financial solutions that address their unique needs.

  45. The Ottawa team ►Lianne Mercier, Financial Counsellor ►Paul Bazinet, Pietro Furletti, Insurance Representative ►Marc St-Germain, Victor Neuspiel, Elaine Flynn, Paul Kellar, Financial Planners We’re here for you! Serving Those Who Serve. Ottawa 613-233-2177 1-800-267-6681 SISIP Financial Services Your financial solutions for today and…tomorrow!

  46. Questions?

  47. SISIP Financial Services Celebrating 40 years as the provider of Financial Solutions for the Canadian Forces! sisip.com

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