Transcript Manulife Financial

Welcome to your <ABC Company Ltd.>
Group RRSP
Agenda
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Why plan for retirement?
The benefits of a Group RRSP
Investment options
Steps to get you started
Service and support available
Who is Manulife?
 A Canadian company operating worldwide
 More than 115 years of strength and stability
 Consistently receives top ratings from
various rating agencies
Strong and Secure!
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Responsibilities
<ABC Company>
Manulife
Investment
Managers
You
Your Employer
Service Provider
Fund Managers
Plan Member
 Develop member
education/planning
tools
 Provide member
assistance
 Prepare and
mail statements
 Offer investments
 Perform research
 Create funds
 Select stocks
and bonds
 Buy and sell
securities
 Select service
provider
 Send contributions
 Monitor the plan
 Provide
information
• Understand your
plan and
investments
• Choose investments
• Make contributions
• Monitor your
account
• Update personal
information
Take Control of Your Retirement
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Why save for retirement?
 One third of Canadians age 60 or older are worried they’ll
outlive their retirement savings1
 Two thirds of Canadian households expecting to retire in
2030 are not saving enough to meet necessary living
expenses2
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1 2007
Decima Research Poll
2 2007
Study by University of Waterloo and Canadian Institute of Actuaries
Why save for retirement now?
 To ensure you have enough money for the lifestyle you
want to enjoy
 Saving in your sock drawer may not be enough
 The longer you save, the more you can accumulate
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Sources of retirement income
 Canadians generally rely on
three distinct sources of income:
1. Government Pensions
 Canada Pension Plan (CPP)
 Old Age Security (OAS)
2. <ABC Company Ltd.> Group RRSP
3. Personal Savings
 RRSPs, GICs, Mutual Funds
 Home equity
 Other investments
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Starting early pays more
 Starting 10 years earlier gives Terry $35,000 more than
Chris – even though he saved for only 10 years
Assumptions: Contributions made at the beginning of each year, compounded annually, at an 8% rate of return.
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Learn about your Group RRSP
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Who is eligible to
join this plan?
You are eligible to join this Group RRSP.
Do I have to join?
This Group RRSP is voluntary,
which means you can choose whether or not to participate.
<Remember, if you don’t participate, you won’t receive
contributions from your employer>
When can I join?
<Insert eligibility from the Plan Design Template>
Who contributes and how much?
Who will
contribute to this
Group RRSP?
May I make additional
contributions
throughout the year?
<Insert Contribution Formula from the Plan Design Template>
Yes. In addition to your payroll deductions,
you may make lump-sum deposits at any time.
You can do this by logging on to your account at
www.manulife.ca/GRO and selecting
‘Make a lump sum contribution’.
You are responsible for managing
your own RRSP contribution limits.
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Learn about your Group RRSP continued…
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Who decides how my
contributions will be
invested?
You decide how your contributions will be invested.
Can I transfer money
into this RRSP?
Yes, you may transfer money into the
Group RRSP at any time using the Transfer Form
found on page 21 of your Enrolment Guide.
May I withdraw money
from this RRSP?
<Insert Withdrawal rules from the Plan Design Template>
Learn about your Group RRSP continued…
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What happens if I
leave the company?
Your assets will be transferred to the Manulife Personal Plan.
What happens if I
retire from the
company?
You may choose to start your retirement income
at any time prior to the end of the calendar year in
which you reach age 71.
Your assets will be transferred to the Manulife Personal Plan.
What happens if I die?
Manulife Financial will pay a death benefit
to your designated beneficiary.
Advantages of your Group RRSP
 <Contributions from the Employer>
 A convenient way to save
 Immediate tax reduction
 Tax-deferred growth
 Leading fund managers
 Lower investment management fees
 A way to consolidate your savings
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Tax Advantage – Your contributions
 Employee earning $40,000 per year:
No RRSP Contribution
Bi-Weekly Pay
With RRSP contribution
$1538.46
RRSP Contribution (3%)
$1538.46
$46.15
Less:
Provincial Tax
Federal Tax
Net Pay
$88.90
$84.70
$161.95
$151.85
$1287.61
$1255.76
Your net pay only changes by $31.85
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Investment Management Fees (IMF’s)
 Take advantage of your
group’s purchasing power
$10,000
Year 5
Year 10
Year 15
$9,000
Potential fee savings
for a $5,000 investment over
20 years = $1,353
$9,388
Year 20
$8,000
$8,035
$8,020
$7,000
 Lower fees leave more
of your money in your
account to grow for your
retirement
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$7,136
$6,851
$6,338
$6,000
$5,853
$5,629
$5,000
Group Plan Investment
Retail Investment MER
IMF 1.80%
2.60%
Decide how to enroll
 Two choices:
 Web
<delete web if e-enrolment codes
are not yet available>
— Go to www.manulife.ca/GRO/enroll
— Enter policy number and access code
— Remember to print, complete and sign your Beneficiary Confirmation
– then return it to Manulife
 Paper
— Tear out the Application Form on page 3 of your Enrolment Guide.
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Paper application form
<Insert Number>
<Company Name>
January 1, 1998
Not Applicable
Male
Not Applicable
January 1, 1998
ON
Brett
R
Sawyer
123 Any Street
Anytown
May 25, 1970
English
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ON
CA
123 456 789
519-876-1212
N7T 2M0
Married
[email protected]
Name your beneficiary
Martha Sawyer
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Wife
100%
Spousal RRSPs
 Tax planning – before and after retirement
 How it works
 Contributor – you
 Spousal member – your spouse or common-law partner
 Tax receipt – sent to you
 Contribution room used - yours
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Decide how to invest
A
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B
C
How interested are you in
selecting investments for
your retirement savings?
I am not interested.
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I have some interest.
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I am very Interested.
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How likely are you to monitor
and rebalance your investments
on an annual basis?
I don’t want to review
my investments.
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I review my
investments annually.
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I check my investments
on a regular basis
(at least quarterly).
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How would you rate your
investment knowledge?
I have little to no
knowledge
about investing.
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I understand the basics
of investing.
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I am confident in my
investment knowledge.
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If you chose two or more from
The best investment for you is
Column A
A Retirement Date Fund
Column B
An Asset Allocation Fund
Column C
Individual funds
(‘Build your own portfolio’)
Look for this symbol…
Retirement Date Funds
 Series of nine Manulife Retirement Date funds:
 Each fund:
 Provides a well-balanced investment portfolio inside a single fund
 Represents a future retirement date
 Automatically rebalances to become more conservative as
retirement date approaches
 Eight funds available, with dates of 2015, 2020, 2025,
2030, 2035, 2040, 2045, 2050.
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Retirement Date Funds
Hypothetical portfolios. Example is for illustration purposes only.
Automatic rebalancing; “Gentle Slope” approach
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Retirement Date Funds
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Retirement Date Funds
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Asset Allocation Funds and
‘Build your own’ portfolio
 Complete the 8-question Investor Style Questionnaire
 Tally your score to learn your investor style
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Asset Allocation Funds
 Ready-made portfolios
in a single fund
 Simple and easy – little homework
 Diversified by asset class,
style, manager
 Manulife is responsible for monitoring
and periodic re-balancing
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Asset Allocation Funds
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Asset Allocation Funds
 Match your investor style to the corresponding
Asset Allocation Fund
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Asset Allocation Funds
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‘Build your own’ portfolio
 17 Market Based Funds and 3 Guaranteed Investments
Follow the suggested investment mix
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‘Build your own’ portfolio
 Match the coloured segment
of the pie to the colour of
the corresponding fund page
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‘Build your own’ portfolio
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Investment information
 Individual information sheets
for each fund available in your
group retirement program
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Default investment
 If you do not choose fund(s) for your contributions, your
money will be invested in the ‘plan default’ until you provide
instructions.
Your plan’s default investment:
 1st – A Retirement Date Fund (if your birth date is on file)
 2nd – Manulife Moderate Asset Allocation
(if no birth date on file)
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Step 4 – Transfer Assets to your Group RRSP
 Consider transferring your existing registered
assets to your Group RRSP
 Why?
 Low fees help your retirement savings grow faster
 Member Reward Program
— IMFs reduced and GIA rates increased by…
$25 – 40,000 – 0.10%
$40 – 60,000 – 0.20%
$60,000+ - 0.25%
 Transfer form included on page 21
of your enrolment guide
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Education and Communication
 Secure website available 24 hours a day, 7 days a week
 www.manulife.ca/GRO
— Current account balances
— Plan information
— Investment information
— Retirement planning tools
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Ongoing Support and Services
 Annual Account Statements
 Internet site: www.manulife.ca/GRO
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Steps Retirement Program®
 Telephone: 1-888-727-7766 (toll-free)
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IVR
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Customer Service Representatives
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Financial Education Specialists
 Email: [email protected]
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Thank you
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