Our newsletter

Rogers Group Financial (RGF) publishes a quarterly newsletter, The Financialist, which is written by the advisors of our firm. The articles are aimed at providing meaningful information relevant to the specific needs of our clients, and each covers a variety of topics (including specific investment strategies and the details of individual investment products).  The latest issues of The Financialist are below; for a complete archive and access to printable .pdf articles, please click here


Q - How long can I contribute to an RESP (Registered Education Savings Plan)? And how long can I collect the CESG (Canada Education Savings Grant) on behalf of my child?

A - Generally speaking, you can contribute to a family plan as long as the beneficiaries are less than 31 years of age at the time of contribution. While there is no annual limit for contributions, the maximum lifetime contribution per beneficiary is $50,000.

The CESG is more restrictive. Your child is only eligible to receive the CESG for contributions made up to the end of the calendar year in which they turn 17 years of age. The lifetime maximum CESG is $7,200, and there are limits as to how much can be credited in any given year. The maximum CESG per beneficiary is $500 per year, or $1,000 if there is unused grant room from a previous year.

There are additional education savings incentives (the additional CESG and the Canada Learning Bond) available for children of low-income families.

Q - One of my friends recently purchased an annuity, saying it would provide a guaranteed income for life. What is an annuity and how does it work?

A - A life annuity is a financial vehicle that allows you to exchange a lump sum of capital for a guaranteed income for as long as you live (or you and your spouse or partner lives).

Life annuity income payments are essentially a blend of principal and interest paid over your life expectancy. You make a lump sum deposit and a life insurance company in turn pays you a guaranteed income for life. If you live beyond your life expectancy, the insurance company still continues the income payments.

While life annuity payments generally cease at death, you can elect to have a guaranteed
minimum amount for a life annuity. For example, you can opt for a guaranteed payment period such as 15 years. This means that even if you pass away before 15 years of payments have been made, payments will continue for the remainder of the 15-year guarantee period.

It is also possible to arrange an insured annuity, which provides a 100% return of the annuity deposit at death combined with a tax effective lifetime income.

Life annuities can be purchased using “registered” funds (a transfer from an RRSP or RRIF), in which case, the annuity income is fully taxable. Life annuities can also be purchased using “non-registered” funds, in which case, significant tax advantages can result.


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