financial planning & advice

Transcription

1 financial planning & advice

2 Tips for successful investing. Start early and invest regularly Do your homework take the time to become an informed investor Develop an investment strategy you are comfortable with Diversify your investments to create a balanced portfolio based on your goals Review your portfolio and asset mix regularly Concentrate on a long-term investment horizon Understand the tax treatment of your investments and take steps to minimize taxes Make certain you have adequate insurance coverage to protect your assets and the financial well-being of your dependents Seek professional advice and assistance

3 financial planning & advice Island Savings Financial Planning & Advice: insight and advice you can count on. Whether you re just starting to save, on your way to building an investment portfolio, or planning for retirement, it pays to talk with someone who s genuinely interested in your financial well-being. That s why Island Savings created Financial Planning & Advice. A new approach to financial management Island Savings Financial Planning & Advice provides you with access to Insurance Specialists and specialized Account Managers, as well as Investment Advisors through our partnership with Credential Securites Inc., who are ready to sit down with you to build a full understanding of your goals and needs. It s a dedicated team that will help you reach those goals with the highest level of financial planning, advice and member service available today. Neighbourhood experts you can rely on With Financial Planning & Advice, you always have someone looking out for your financial well-being. After all, with over 60 years of financial experience right here on the Islands, no one is more qualified to help you get where you want to be.

4 Helping your money do more. Savings and Cash Equivalents Having a readily available cash reserve is important to cover emergencies and provide funds in the event of temporary job loss or illness. At Island Savings, we offer the following flexible options to invest for liquidity: High interest Premium Savings Account Daily interest Investment Savings Account Redeemable term deposits Money market mutual funds* Term Deposits (GIC equivalent) Term deposits are a key component of a balanced investment plan because they protect your principal investment and, at the same time, pay you a guaranteed rate of return. No matter how the market fluctuates, your investment is solid and secure. At Island Savings, our term deposits offer the competitive return, security and flexibility you re looking for: A range of investment time frames 30 days to 5 years Minimum deposit: $500 Income payment options from monthly to annual Choice of redeemable (cashable any time) and nonredeemable (cashable only at maturity) deposits Easy savings monthly payment plan via direct deposit

5 Island Savings Class C Shares You can invest directly in the success of Island Savings by purchasing Class C shares that offer the potential to earn a higher rate of return than traditional savings over the longer term. Each share has a par value of $1.00. Minimum investment: $500 Maximum investment: $5,000 RRSP & TFSA eligible Dividends declared and paid semi-annually Registered Education Savings Plans (RESPs) You can help guarantee your children s and grandchildren s future education by making regular contributions to an Island Savings RESP. Income earned in a child s RESP will accumulate and compound on a tax-deferred basis until withdrawn. At Island Savings, it s easy to set up a new RESP, or to transfer in funds from an existing plan. Ask us for details. Available as single or family plans Choice of savings options including automatic monthly deposits Access to mutual funds* through an RESP with Credential Asset Management Inc. Access to segregated funds through an RESP with Island Savings Insurance Services The Credit Union Deposit Insurance Corporation of British Columbia, a government corporation, provides unlimited deposit insurance protection on all deposits in British Columbia s credit unions as provided by the Financial Institutions Act. Peace of mind through security you ll find it at Island Savings.

6 Full Brokerage Services* At our Island Savings branches, you can enjoy convenient access to full brokerage services through our partner, Credential Securities Inc. Qualified Investment Advisors are available to assess your needs, monitor your progress and guide you along the way to reaching your objectives. A full range of competitive, future-focused investment products and services are available to match your lifelong financial goals, including: Preferred shares/stocks Government and corporate bonds Treasury bills Income trusts (real estate, gas and oil, etc.) Mutual Funds* When you buy into a mutual fund, you are contributing to a pool of funds held by many investors. Each pool of funds is, in turn, invested in a variety of securities, depending on the fund s specific objectives. The securities held in trust in a mutual funds portfolio are researched, selected, monitored and traded by professional investment managers. Mutual funds have gained considerable acceptance among investors because they are affordable, easy to buy and sell, and have built-in diversification that gives you access to a wide range of investments. Most mutual funds are also RRSP eligible. Through our partnership with Credential Asset Management and Credential Securities Inc., we can provide you with access to: A full range of investment options for savings, income and growth Socially responsible investing through Ethical Funds and Northwest Funds A regular monthly purchase option that enables you to take advantage of dollar cost averaging

7 Segregated (Seg.) Funds** Segregated funds combine some of the same investment features of mutual funds with the protection of an insurance policy. They also guarantee the private transfer of wealth to your heirs outside of your estate, providing potential creditor protection and eliminating probate fees. As a result, they appeal to conservative investors who want the growth potential without the associated risks, and to those near retirement age who want to ensure their capital is protected and fully-secured. Island Savings Financial Planning & Advice experts are available to provide details of the unique, value-added features of segregated funds. Planning for your retirement Time is your best ally when planning for retirement. The sooner you take advantage of our Financial Planning & Advice to start building a lifelong financial plan, the more you can look forward to a secure retirement. Registered Retirement Savings Plans (RRSPs) Investments in an RRSP grow on a tax-deferred basis. Contributing to an RRSP lets you reduce the amount of tax you pay now and helps to increase your retirement income in the future. At Island Savings, we can provide you with access to a wide range of RRSP-eligible investment options, depending on your financial plan: Deposit plans (savings and term) Mutual funds* Bonds* Preferred shares and stocks* (full brokerage services) Segregated funds**

8 Planning for your retirement cont. We can also help you set up specialized RRSPs such as: Spousal (to allow for income-splitting) Group (ideal for employees of small businesses) Self-directed (to actively manage your own investments) To make it easier for you to maximize your contributions to your RRSP and increase your tax savings, Island Savings offers: Automatic deposits into convenient monthly savings plans RRSP loans to help you take advantage of any unused contribution room Transfer of existing RRSP accounts Retirement income options Once you re ready to start drawing an income from your retirement savings, our investment advisors can help you make the right decisions to match your specific needs. Registered Retirement Income Funds (RRIFS) At retirement, your RRSP is no longer strictly a savings vehicle, and can be converted to a RRIF to provide a key source of income while tax-sheltering remaining funds. Locked-In Retirement Accounts (LIRAs) and Life Income Funds (LIFs) Most company pension plans allow you to transfer your accumulated pension benefits into a LIRA and then into a LIF without any tax implications. Your Financial Planning & Advice experts can clarify the regulations for you. Annuities** By using your retirement savings to purchase an annuity, you don t have to worry about the uncertainties of interest rates or stock markets. Your annuity locks you into a guaranteed rate of return at the time of purchase and provides for set payments over a defined period of time.

9 Estate Planning & Preservation Our Financial Planning & Advice is ideal for helping you plan and preserve your estate. Using a number of innovative products, our experts can develop an effective wealth-management strategy that will: Provide for your loved ones in the event of your illness or death Minimize taxes and probate fees to ensure a full inheritance goes to those who matter most Provide adequate liquidity in your estate to pay any taxes and liabilities Segregated (Seg.) Funds** A form of insurance, segregated funds guarantee the private transfer of wealth to your heirs outside of your estate, providing potential creditor protection and eliminating probate fees. Registered Retirement Income Fund (RRIF) Protection Insurance** Every dollar in your RRIF becomes taxable in the year of your death (or the death of your spouse). Purchasing RRIF protection insurance ensures that a benefit equal to the projected income tax assessment will be paid to your estate, preserving its value. Life Insurance** The right life insurance coverage can provide the security and strong financial future your family deserves by serving as a taxefficient investment, ensuring your full estate goes to the people it should, and protecting your business and livelihood. Critical Illness Coverage** Critical illness coverage provides a tax-free, lump-sum payment you can use to cover extraordinary expenses and avoid depleting your other assets. Long Term Care Insurance** Long-term illness or serious injury can prematurely deplete your savings and assets. Long-term care insurance provides for substantial tax-free benefits to cover the cost of health care and protect your standard of living, so you can maintain your dignity and choice without relying on government plans.

10 You work hard for your money. Make your money work hard for you. Our Financial Planning & Advice experts can help secure your financial future by working with you to design a sound financial plan based on your: Individual goals Stage in life Budget Tolerance for risk Your financial plan will help determine whether you choose guaranteed return deposits or alternative investments such as stocks*, bonds* and mutual funds*. And as you build wealth and assets, your plan will include strategies for preserving your estate and protecting what s important to you. Contact your Island Savings branch for a FREE, no obligation investment consultation today.

11 * Mutual funds are offered through Credential Asset Management Inc. and mutual funds and other securities are offered through Credential Securities 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, cash balances, mutual funds and other securities are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer that insures deposits in credit unions. There can be no assurances that a money market fund will be able to maintain its net asset value per security at a constant amount or that the full amount of your investment in the fund will be returned to you. Mutual funds and other securities are not guaranteed, their values change frequently and past performance may not be repeated. Using borrowed money to finance the purchase of securities involves greater risk than a purchase using cash resources only. If you borrow money to purchase securities, your responsibility to repay the loan and pay interest as required by its terms remains the same even if the value of the securities purchased declines. Credential Securities Inc. is a Member CIPF. Credential is a registered mark owned by Credential Financial Inc. and is used under license. ** Available through Island Savings Insurance Services Ltd, a wholly-owned subsidiary of Island Savings Credit Union. Ethical Funds is a registered mark owned by Northwest & Ethical Investments L.P. and is used under license.

12 Island Savings provides a full range of products and services banking, investment advice, insurance, commercial lending and business services and is linked to the Canada-wide Exchange ATM network. Through investing in local businesses and supporting community organizations and charities, we re working to make these Islands an even better place to live. For all of us. Visit us at iscu.com Printed on 10% post-consumer paper