MEMBER RETIREMENT SERVICES A Sound Financial Future To Put You In Control

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1 MEMBER RETIREMENT SERVICES A Sound Financial Future To Put You In Control

2 Take Control of Your Future... With a Sound Financial Plan A Foundation for Achieving Your Financial Security Whether you re starting your first job, just starting a family, or finally hitting your peak earning years, RRSPs play an important role in your long term financial plan. No matter what stage of life you re in, your credit union can help you make the most of your allowable RRSP contributions. An Investment that Works Hard for You Today and Tomorrow An RRSP is an investment in your future, with benefits you can enjoy today. By contributing to an RRSP, you can take advantage of substantial tax savings now, and enjoy peace of mind in knowing you ll have a financially secure retirement. Plus, your RRSP dollars are completely tax sheltered as long as they remain in the contract. Only RRSPs work as hard for you in the present as they will in the future. Credit Union RRSPs Smart Investment Options Look into RRSPs available at your credit union, and you ll see smart investment options that guarantee a solid return. Choose the RRSPs that suit you best: Variable Rate RRSP This type of RRSP ensures that your investment keeps pace with current interest trends. Interest rates are reviewed and adjusted regularly so you benefit from the most competitive rate. Fixed Rate RRSP A Fixed Rate RRSP provides the security of knowing your rate of return is guaranteed for a fixed period of time. You can choose the term that best fits your plans.

3 Monthly Deposits Convenience that Maximizes Your Return Maximize your money by depositing your RRSP contribution monthly. The interest earned is compounded, which means you ll be earning interest on the interest! In the long run, this can have a dramatic effect on your investment. (See chart below for example.) Your credit union can help you benefit from the monthly deposit advantage, by automatically transferring funds from your account to an RRSP. It s convenient. It s painless. And it s as easy as filling in the authorization form included. Scenario 1 (Assumes interest compounded annually). Lump sum contribution of 3% p.a. for 30 years Total Contribution $ 36, Interest Earned $ 21, Total Value $ 57, Scenario 2 (Assumes interest compounded annually). Monthly contribution of 3% p.a. for 30 years Total Contribution $ 36, Interest Earned $ 22, Total Value $ 58, A Difference of $1,183.19! Get Further Ahead by Making Monthly RRSP Deposits You can deposit a lump sum at the end of each year, but if you deposit the same amount by making 12 monthly payments, you ll actually be farther ahead!

4 Your Credit Union Makes It Easy! Just fill in the form below! Monthly Payment Authorization Form Please complete and return to your credit union. YES! I d like to get ahead by making monthly contributions to an RRSP plan. I, (Please print your full name) hereby authorize (Name of your credit union) to debit my account as follows: Chequing Savings Daily Interest Other (Please specify) Account Number: Branch Number: Amount: $ to be debited on the day of each month starting: / / RRSP Number: Contract Number: Authorized Signature: X (Please sign your name) Day Month Year

5 Credit Union RRSP Loans Timely and to Your Advantage Sometimes it s tough to come up with the cash before the deadline for contributions. Your credit union can help with a convenient RRSP loan that practically pays for itself. They ll show you how the cost of borrowing can actually be offset by your tax savings at year end. Talk to Your Credit Union Now to Enjoy the Retirement of Your Dreams Your credit union will help you find a way to fit RRSP contributions into your current financial plan, so you can fully enjoy the tax benefits now. And they ll show you how RRSPs can give you control over your financial future, so you can enjoy the retirement of your dreams. Note: Deposit options may vary among individual credit unions. Credit union deposits are protected. Deposit insurance coverage is prescribed in each province by provincial law. Please check with your local credit union for specific coverage details. The information in this publication is summary in nature and does not constitute legal or financial advice. This brochure is provided by your local credit union and is designed to inform you about RRSPs. For more information about this or any other financial product, please contact our knowledgeable staff.

6 HANDS & GLOBE Design is a registered certification mark owned by the World Council of Credit Unions, used under license Credit Union Central of Canada. All rights reserved. RRSLEARSPA