Understanding the Jargon
Single Life Pension
Pays you an income for as long as you are alive.
Joint Life Pension
Pays an income as long as you and/or your spouse are alive.
Guarantee Options
Provide a minimum time that your pension will continue. In the event that either you and/or your spouse die before the end of the guarantee period, the income would be payable for the balance of the guarantee period elected (for example 10 or 15 years from the date the pension income started).
Commuted Value
The amount of money that represents your pension benefit that could be transferred in a lump-sum, in most cases, to a locked-in retirement account. If you are not going to immediately start drawing income from the plan and you do not take the commuted value, you will be leaving your pension to a later date as a Deferred Pension.
Bridge Benefits or Temporary Annuity
These are used to provide short-term higher payments until other benefits start, such as Canada Pension Plan (CPP) or Old Age Security (OAS) and they help to smooth out the income stream by integrating payment from your pension and government benefits.
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Our Approach
Developing a meaningful plan takes time, for both our clients and ourselves. The amount of time involved depends upon the complexity of the case and our clients’ expectations and risk tolerance. We use questionnaires to assist in gathering information which allow us to determine risk tolerance, time frame, and expectations regarding market performance for investments. Our clients receive an Investment Policy Statement, which addresses their individual risk tolerance and investment expectations.
Plan Types
Planning for your future means choosing the right savings and investment vehicles to match your goals. From retirement income and education funding to home ownership and long-term financial security, there are a variety of government-registered plans designed to help Canadians save and grow their money.
Each plan type—whether it’s an RRSP, TFSA, RESP, or newer options like the FHSA—offers unique benefits and rules around contributions, taxation, and withdrawals. Understanding how these plans work is the first step toward building a strategy that supports your lifestyle today and the life you want tomorrow.
RRSPs
A Registered Retirement Savings Plan (RRSP) is a government-approved plan through which you save money for your retirement years. Your RRSP investments are tax deductible, within limits, and the income earned is sheltered from taxation until withdrawn from your plan. You can have any number of retirement plans.
RRIFs
A Registered Retirement Income Fund (RRIF) is similar to an RRSP except that you cannot make contributions, and you are required to withdraw a minimum amount each year. Your RRSPs are converted into a RRIF account once you decide to draw income or at age 71. The RRIF earns money from investment, just as your RRSP did while you were contributing to it, and the RRIF makes payments to you according to a formula selected by you in accordance with CRA’s requirements.
RESPs
A Registered Education Savings Plan (RESP) is a tax-deferred education savings vehicle by which the federal government allows a parent or grandparent to save money for a child’s post-secondary education.
RDSPs
A registered disability savings plan (RDSP) is a savings plan that is intended to help parents and others save for the long-term financial security of a person who is eligible for the Disability Tax Credit. Click here for more details
TFSAs
A Tax-Free Savings Account is a new way for residents of Canada to set money aside, tax-free, throughout their lifetimes. Contributions to a TFSA and the interest on money borrowed to invest in a TFSA are not tax deductible. The income generated in the TFSA is tax-free when withdrawn.
FHSAs
New in 2023, the First Home Savings Account is a way to save for the purchase of a qualifying first home. Plan holders benefit from their contributions being tax deductible, tax free growth of contributed funds and withdrawals received tax-free.
IPPs
An IPP is a maximum defined benefit plan which provides contribution amounts in excess of the money purchase pension plan / RRSP contribution limit for people who satisfy certain age and earnings criteria. The plan has financial advantages over the RRSP-only alternative for high-income earners over certain age limit.
Pension plans
Pension plans can vary greatly in terms of their structure and the benefits they provide. The two most common types of pension plans are the defined benefit plan and the defined contribution (or money purchase) plan. Some employers offer a combination of the two types of plans – known as “hybrid” or plans.
Group RRSPs
A Group RRSP is simply a collection of individual RRSP’s where employees make contributions through regular payroll deductions on a pre-tax basis. Upon completing the application form and deciding how much you want to contribute, you employer deducts that amount from your pay in pre-tax dollars as permitted by Revenue Canada and forwards it to the financial organization selected by your employer as the administrator for the group plan. Your contribution is then deposited into your own personal RRSP at the financial organization and invested as you specify.
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Explain issues and concepts related to the overall financial planning process that are appropriate to you.
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Explain the services Hatch & Muir will provide and our process of planning and documentation.
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Clarify your responsibilities as a client.
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Clarify our responsibilities as your planner. This will include a discussion about how and by whom we will be compensated.
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Discuss the scope of the client/firm engagement.
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Agree on how decisions will be made.
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Sign a letter of engagement
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Obtain information about your financial resources and obligations through interviews and/or questionnaires.
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Gather all the necessary documents before giving you the advice you need.
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Define your personal and financial goals, needs, and priorities.
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Investigate your values, preferences, financial outlook, and desired results as they relate to your financial goals, needs, and priorities.
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Analyze the information you provide to assess your current situation (cash flow, net worth, tax projections, etc.).
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Identify any problem areas or opportunities with respect to your:
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Capital needs
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Risk management needs and coverage
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Investments
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Taxation
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Retirement planning
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Employee benefits
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Estate planning
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Severance issues
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Special needs (ie. adult dependent needs, education needs, etc.)
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Develop and prepare a financial plan tailored to meet your goals and objectives, values, temperment, and risk tolerance, while providing projections and recommendations.
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Present the plan to you and establish an appropriate review cycle.
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Work together to ensure that the plan meets your goals and objectives.
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Assist you in implementing the recommendations discussed. This may involve coordinating contacts with other professionals such as accountants, bankers, lawyers, mortgage brokers, trust officers, and realtors.
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Contact you to review the progress of the plan periodically and make adjustments to the recommendations required to help you achieve your goals.
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Discuss any changes in your personal circumstances and how they might affect your goals.
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Review and evaluate the impact of changing tax laws and economic circumstances.
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Review of your life circumstances and adjust the recommendations if needed as those circumstances change through life events such as birth, illness, marriage, divorce, retirement, job loss, etc.
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Our six steps
The Three Ds of Effective Tax Planning
The three Ds to effective tax planning are Deduct, Defer, and Divide.
You must understand each of these important functions to plan effectively.
Deduct
A deduction is a claim to reduce your taxable income. A deduction will reduce your tax bill by an amount equal to your marginal tax rate. Some common deductions include:
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Pension plan contributions
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Union/professional dues
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Employment expenses
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Moving expenses
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Professional fees
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Child care expenses
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Alimony/maintenance payment
Defer
A deferral strategy attempts to delay when tax will be paid. Deferring tax means you might eliminate the tax this year, but you will have to pay eventually. Generally tax deferral has two advantages: It is better to pay a dollar of tax tomorrow than it is to pay a dollar of tax today; and tax deferral typically puts the control of when to pay the tax in the hands of the taxpayer instead of in the hands of the Canada Revenue Agency (CRA). RRSPs, RESPs, Life Insurance Contracts, and various investment income strategies are the most common forms of tax deferral for the average Canadian
Divide
Dividing taxes (or income splitting) implies taking an income and spreading it among numerous taxpayers. For example, it is better to have two people (say a husband and wife) pay tax on incomes of $35,000 each than one person pay tax on an income of $70,000. Unfortunately, you cannot arbitrarily decide who is going to claim what amounts for income.
Financial Planning
By following the Hatch & Muir Total Planning Process, we can help you minimize tax, legal, probate and other admin expenses, ensuring your financial wishes are respected, documented and carried out.
Retirement Planning
Retirement should be a time to enjoy the lifestyle you’ve worked hard to achieve. Through careful retirement planning, we help you understand where your income will come from, how much you’ll need, and which strategies can make your savings last. Our goal is to give you clarity and confidence so your money continues working for you well into the future.
Estate Planning
A well-structured estate plan ensures that your wealth is transferred according to your wishes while minimizing taxes and complications for your loved ones. We guide you through the process of protecting your assets, preparing for the unexpected, and creating a legacy that reflects your values. Learn more
Pensions
Pension plans remain one of the cornerstones of retirement income, but understanding your options can be complex. We help you evaluate defined benefit, defined contribution, and hybrid plans so you can make informed choices. By integrating your pension into your overall financial strategy, we ensure you get the most from your years of work.
Tax Planning
Effective tax planning is about more than minimizing what you owe — it’s about structuring your finances so more of your money works for you. We help you identify strategies to reduce your tax burden today while preparing for future obligations, ensuring your overall financial plan is as efficient and beneficial as possible.
Plan Types
Understanding the different savings and investment plans available to you is the first step in building a strong, flexible financial future. Each plan offers unique benefits—whether you’re saving for retirement, education, a first home, or long-term security. Below you’ll find straightforward explanations to help you choose the plans that align with your goals today while supporting your financial wellbeing tomorrow.
Our services start with a guided process for your financial future
By following the Hatch & Muir Total Planning Process, we can help you minimize tax, legal, probate and other admin expenses, ensuring your financial wishes are respected, documented and carried out. Read more
Retirement should be a time to enjoy the lifestyle you’ve worked hard to achieve. Through careful retirement planning, we help you understand where your income will come from, how much you’ll need, and which strategies can make your savings last. Our goal is to give you clarity and confidence so your money continues working for you well into the future.
A well-structured estate plan ensures that your wealth is transferred according to your wishes while minimizing taxes and complications for your loved ones. We guide you through the process of protecting your assets, preparing for the unexpected, and creating a legacy that reflects your values. Learn more
Pension plans remain one of the cornerstones of retirement income, but understanding your options can be complex. We help you evaluate defined benefit, defined contribution, and hybrid plans so you can make informed choices. By integrating your pension into your overall financial strategy, we ensure you get the most from your years of work.
Effective tax planning is about more than minimizing what you owe — it’s about structuring your finances so more of your money works for you. We help you identify strategies to reduce your tax burden today while preparing for future obligations, ensuring your overall financial plan is as efficient and beneficial as possible.
OUR SERVICES
Financial planning
By following the Hatch & Muir Total Planning Process, we can help you minimize tax, legal, probate and other admin expenses, ensuring your financial wishes are respected, documented and carried out. Read more
Retirement planning
Retirement should be a time to enjoy the lifestyle you’ve worked hard to achieve. Through careful retirement planning, we help you understand where your income will come from, how much you’ll need, and which strategies can make your savings last. Our goal is to give you clarity and confidence so your money continues working for you well into the future.
Estate planning
A well-structured estate plan ensures that your wealth is transferred according to your wishes while minimizing taxes and complications for your loved ones. We guide you through the process of protecting your assets, preparing for the unexpected, and creating a legacy that reflects your values. Learn more
Pensions
Pension plans remain one of the cornerstones of retirement income, but understanding your options can be complex. We help you evaluate defined benefit, defined contribution, and hybrid plans so you can make informed choices. By integrating your pension into your overall financial strategy, we ensure you get the most from your years of work.
Tax planning
Effective tax planning is about more than minimizing what you owe — it’s about structuring your finances so more of your money works for you. We help you identify strategies to reduce your tax burden today while preparing for future obligations, ensuring your overall financial plan is as efficient and beneficial as possible.