Fortress Registered Retirement Savings Plan
What is an RRSP?
An RRSP is simply a government registered account designed to hold your mutual fund investments now, and then provide you with regular income after you retire. It is essentially your personal pension plan and is available whether or not you are participating in another pension plan.
Why invest in an RRSP?
In addition to helping you invest for your retirement, you can also make one tax-free withdrawal of up to $25,000 from the funds invested in your RRSP to purchase your first home.
How does a Fortress RRSP work?
Our RRSP offers flexible investment options that allow you to choose how your contributions are to be invested. During your working years, you contribute to your Fortress RRSP and your investment goes into the Fortress mutual funds, according to your selection, and you earn a return based on the performance of these funds. Regular monthly or lump sum contributions are permitted.
How is money invested in a Fortress RRSP?
Investors in our RRSP may choose either the Select Fund or Managed Fund option.
With the Select Fund, simply select either our Fortress Caribbean Growth Fund or Fortress Caribbean High Interest Fund for your RRSP investment.
Fortress Caribbean Growth Fund – This fund is a long-term investment and is primarily made up of equities or common stock of companies located throughout the Caribbean and internationally. The intent is to invest in stocks that will increase in value over time and any dividends that are paid are re-invested in the fund which serves to increase the share value. The weekly price of the fund fluctuates, but historically the trend has been up.
Fortress Caribbean High Interest Fund – This fund is intended to be a medium to long-term investment and focuses on preserving your investment while generating the best possible income without significant exposure to risk. The portfolio is primarily made up of fixed income products – bonds or preferred shares in corporations and governments primarily located in the Caribbean that offer fixed rates of interest and dividends with fixed terms to maturity.
Investors opting for the Managed Fund may choose one of the three shares offered by the Fortress Caribbean Pension Fund. The asset allocation of each share matches a specific investment and risk objective using the Fortress Growth Fund (equities), the Fortress High Interest Fund (fixed income) and other assets. The minimum investment is $1,200.00 per annum. The three shares are Aggressive Accumulator (AA); Conservative Consolidator (CC); and Capital Secure (CS).
Aggressive Accumulator (AA) Share – This share is heavily weighted in equities (up to 75%) with the objective of achieving growth and capital appreciation of assets over the long term. It is suited for individuals in the 20 to 50 years old range whose investment time horizon is long and the investor is thus able to assume short term volatility in order to maximise returns and reduce long-term inflation risk.
Conservative Consolidator (CC) Share – This share’s asset allocation is more balanced than the AA share, with a similar amount invested in equities and fixed income. The objective is to achieve growth and capital appreciation of the assets over the medium term. It is suited to the individual in the 45 – 60 age range who are in the later stages of their pension buildup period and do not wish to be exposed to the greater risks of the AA Share and are prepared to accept a lower potential return.
Capital Secure (CS) Share – This share is heavily weighted in fixed income securities (80 – 100%). The objective is to achieve the highest possible return compatible with the preservation of capital in the short term. The target investor is one who is nearing retirement age and wants to reduce the potential level of short-term risk to their portfolio just before he/she has to use the funds to purchase an annuity.
Investors should review their investment selection as they move closer to retirement and can switch to a different investment option up to once a year.
What happens when it’s time to retire?
The plan can be collapsed anytime between the age of 55 and 65. At this time, investors are permitted to receive 25% of the value of their fund in a tax-free lump sum and the remainder has to be used to purchase an annuity or transferred to an income drawdown policy like our INNOVA Lifestage Income Plan.
Withdrawals before retirement will be taxed as regular income and 25% withholding tax retained at source.