Frequently Asked Questions

What is a Financial Planner?
A Personal Financial Planner focuses on the individual - all the financial and psychological factors that impact a person's life taking into consideration their immediate and retirement needs along with their estate wishes.
What does a Professional Financial Planner do?
He or she will collect all relevant financial and personal data in order to assess your needs, then formulate a financial plan to help ensure those needs are met. This involves listing assets and liabilities, reviewing tax returns, insurance policies, pension plans, wills and powers of attorneys.
Will I benefit from a Financial Planner?
If you do not have the time to manage your own investments, are confused with all the advice you are receiving, paying too much tax, don't know where to invest you money or are worried about having enough to retire on, then you will benefit from a Financial Planner.
Are you regulated by any organization?
The Mutual Fund Dealers Association (MFDA) and British Columbia Securities Corporation (BCSC) regulate us.
Will you be the only person working with me?
We have a team approach at Money Concepts. You will have one advisor but if your advisor is not available, you may contact any one of our team at any time.
When is the best time to start investing in an RRSP?
You should start as early as possible. Due to the power of compounding, the earlier you start, the better your investments will grow. As long as you have a Social Insurance Number and an income and file a tax return, you will build up an RSP contribution limit. Then, when it is practical from a tax point of view, to reduce your income through a tax deferred program, you should open a Registered Retirement Savings Plan.
When should I start saving for my children's education?
When you consider the cost of education today and how fast it is increasing, the sooner you can start the better.
Should I consider a Spousal RRSP?
If your spouse will have a lower income, from pension income, investment income, etc, during retirement, you should consider equalizing your joint retirement income through the use of a Spousal RSP. Any money you contribute to a Spousal RSP will give you an immediate tax deduction and will provide your spouse with an income during retirement.
In whose name should investments be?
It will be different for each individual, however normally, investments should be made in the lower income person's name. They may be in a lower tax bracket and pay fewer taxes on the earnings from those investments. You should consult a professional for you own situation.
What is the maximum amount I am allowed to contribute to my RRSP each year?
You can contribute up to 18% of your earned income less any Pension Adjustment if you belong to a Registered pension Plan. However, you cannot exceed the maximum amount of $16,500 for 2005, $18,000 for 2006, $19,000 for 2007, $20,000 for 2008, $21,000 for 2009 and $22,000 for 2010. After that, the maximum amount is indexed to average wage growth starting in 2011.
What happens if I contribute over my RRSP limit?
You are allowed a one time over contribution amount of $2,000. After that amount is exceeded, CCRA will penalize you 1% per month until the excess is withdrawn.
Do I have to pay tax on any returns I make on investments held in my RRSP each year?
No. Any taxes on earnings are deferred until they are withdrawn from the plan. At that time, any money you withdraw from an RRSP is fully taxable.

Money Concepts Prince George

Frequently Asked Questions