Retire wealthier by keeping more of your RRSP money
The above calculations compare the difference between $25,000 investment with an annual contribution of $5,000 in a ModernAdvisor portfolio that costs between 0.6% and 0.75% per year to the same investment in a typical 60/40 mutual fund portfolio that costs 2.35% per year. Both portfolios are assumed to earn a hypothetical return of 6% before fees and are held in non-taxable accounts.
Why an RRSP?
A WAY TO PLAN FOR YOUR RETIREMENT
A Registered Retirement Saving Plan (or RRSP) is a great way to save and invest for your retirement. Contributions to an RRSP are tax-deductible and any money you put in an RRSP can grow tax-free until you take it out. This tax-free compounding allows your investments to grow faster.
The ModernAdvisor RRSP Advantage
TAILORED TO YOUR NEEDS
Whether you are just starting your career or are close to retirement, we offer a high-quality, low-cost portfolio suitable for your unique needs.
A globally diversified and properly rebalanced portfolio reduces volatility in you RRSP and enables you to grow your retirement savings with the global economy.
LOW FEES = MORE FOR YOU
It’s really simple: The less you pay in fees, the more you will have to retire on. With ModernAdvisor you only pay a low and transparent fee as a percentage of your RRSP balance.
What our clients say about us
“Awesome customer service with well diversified portfolio for a fraction of the price other financial institutions charge for managing assets. Automated re-balancing saves me time and money and with no chance of making errors.”Guillaume P., 31
“The costs are reasonable, contact is easy and informative and I appreciate the support I have received to date. I have referred my daughter and son-in-law, son and daughter-in-law and a good friend.”Tom S., 69
The performance of your investments will largely depend on your timeframe and risk settings. For an RRSP managed for the long-term we expect average growth of 5-8% per year, but don’t expect your investments to grow on a straight line. Some years you will see lower returns, and some years you will see higher returns.
All ModernAdvisor accounts will be held at an independent custodian, Credential Qtrade Securities Inc. As Credential is a member of the Canadian Investor Protection Fund (CIPF), your account is insured up to $1 million by CIPF. Note that this is not insurance against trading losses; CIPF covers your account if Credential runs into difficulty and is forced to shut down. For comparison, most bank accounts in Canada are insured up to $100,000 by the Canada Deposit Insurance Company (CDIC).
In addition, we protect your information by using bank-level encryption to encrypt all communications between your browser and our servers.
Yes. Once you set up a ModernAdvisor RRSP, provide us with a statement from your existing RRSP and we will fill out the necessary forms and will initiate the transfer. We will even cover any fees charged by the other firm – up to $150 – if you transfer more than $25,000 to us.
Simply put, lower fees will make a huge difference in the size of your retirement nest egg over time. Let’s look at an example:
Tara and Cyrus are both 30 years old and each make $35,000 per year. Tara invests 10% of her income in a mutual fund portfolio that costs 2.35% per year. Cyrus invests his money in a ModernAdvisor portfolio that costs 0.75% per year (or lower).
Both portfolios earn a 6.2% return before fees. Tara and Cyrus both increase their earnings at 4% per year until they retire at age 65.
At age 65, Cyrus will have almost 35% more to retire on compared to Tara. That’s how big of a difference lower fees can make in your financial well being.
Absolutely. As a ModernAdvisor client you will have on demand access to our portfolio managers and financial advisors via online chat, email, and phone.
18% of your income in 2015 up to a maximum of $25,370. RRSP contribution room is cumulative so if you didn’t max out your RRSP in previous years your limit is likely much higher. You can find this information on your last year’s Notice of Assessment or in your CRA My Account.
For the 2017 tax year the RRSP contribution deadline is March 1st, 2018 at midnight local time.