Investments

Based on your specific needs and goals, investments can play a key role in your financial security plan and your ability to achieve your short- and long-term goals. We have access to a wide range of savings and income products – both registered and non-registered savings, income, and pension plans for individuals; as well as registered and non-registered savings and pension plans for employee groups.

We can offer you the following funds:


 

Registered Retirement Savings Plan (RRSP)

An RRSP allows you to save money for your retirement, with contributions being tax deductible from your annual income, thereby reducing the amount of income tax that you pay. As well, any income earned in your RRSP is tax deferred until the funds are withdrawn. Any income earned compounds, in other words, your income will earn income which can significantly increase the amount of money you will accumulate for retirement.


 

Registered Retirement Income Fund (RRIF)

An RRSP must be converted to a RRIF no later than December 31st of the year in which the RRSP annuitant turns 71. From that point forward, you are required to withdraw at least the prescribed minimum each year. RRIF withdrawals are taxable and depending on the amount withdrawn, taxes may be withheld at the time of withdrawal, and withdrawals do affect income-tested benefits and credits.


 

Locked-In Retirement Account (LIRA)

Think of the LIRA as a special kind of RRSP, since you can’t set one up with just any money. It’s created when someone leaves their employer and decides to invest their commuted value from their Defined Benefit (DB) or the balance in their Defined Contribution (DC) pension plan on a tax deferred basis. Once the proceeds of your pension have been transferred out of the pension plan and into the LIRA, the account is now locked. You can’t make additional contributions, but you are now in control of how the money is invested, not your employer.


 

Life Income Fund (LIF)

In the same way that an RRSP turns into a RRIF at the end of the year you turn 71, a LIRA can be converted into a LIF. The earliest age in which a LIRA can be converted to a LIF depends on the province you lived in at the time you left your employer, but the latest age to convert your LIRA into a LIF is by the end of the year you turn 71. Like a RRIF, you’ll have to withdraw a certain minimum amount from a LIF every year, but these accounts also come with a maximum withdrawal limit. The reason for the maximum payment amount is to ensure you’ll have money for your entire life since the funds were once a part of a workplace pension, the government wants to make sure the funds are used properly.


 

Tax Free Savings Account (TFSA)

One of the most common misconceptions with a TFSA is that it does not have to be a bank account. The TFSA is simply another tax-advantaged registered savings plan that you can hold the same eligible investments held in your RRSP. Contributions to a TFSA are not tax-deductible, but investment income earned within your TFSA portfolio grows tax free, there are no penalties or tax consequences for making withdrawals, nor do withdrawals impact your eligibility for income-tested benefits or credits. This makes the TFSA a suitable vehicle not only for long-term savings objectives, but for short and medium-term ones as well.


 

Registered  Education Savings Plan (RESP)

Contributing to a RESP is an excellent way for families to accumulate money for the future education needs of children. Contributions are not tax-deductible but the income earned on contributions compounds on a tax-deferred basis. In addition, 20 percent of the annual contribution up to the first $2,500 per beneficiary are matched by the government in the form of the Canada Education Savings Grant (CESG), until the end of the year in which the beneficiary turns 17, up to a maximum CESG of $7,200. As well, depending on your family income, your child may also be eligible for the Canada Learning Bond. 
There are two types of RESP plans:

  • Individual plans can only have one beneficiary and there are no restrictions on who can be a beneficiary under these plans.
  • Family Plans can have one or more beneficiary and each beneficiary must be connected by blood or adoption to each living subscriber under the plan or to a deceased original subscriber.

RESP withdrawals are taxable in the hands of the beneficiary. In the event that the child or children do not enroll in post-secondary education, grants and bonds must be repaid to the government and the earnings are taxable to the subscriber.


 

Registered Disability Savings Plan (RDSP)

A RDSP is intended to provide for the long-term financial security of a beneficiary who has a prolonged and severe physical or mental impairment. Therefore, in order to qualify as a beneficiary of an RDSP, an individual must be eligible for the Disability Tax Credit (DTC). Contributions to the RDSP can be made to the plan by the beneficiary, their parents or family members, or by other authorized contributors. For qualifying individuals, the Canada Disability Savings Grant (CDSG) and Canada Disability Savings Bond (CDSB) are available to supplement the RDSP. Between these two programs, an annual contribution of $1,500 can result in as much as $4,500 of federal government contribution. There is a lifetime limit on contributions and contributions are not tax-deductible. However, the earnings generated on contributions are tax-exempt while they stay in the plan. When earnings are withdrawn as part of a disability assistance payment, they are taxable in the hands of the beneficiary. 


 

Mutual funds

Mutual funds can be the foundation of a diversified investment portfolio. By allowing individual investors to pool their savings in a portfolio of investments managed by professional investment managers, they allow you to diversify your portfolio among many different companies and industries within Canada and around the world.

As an investment representative, we have access to products offered by a leading mutual fund dealer and we can help you build a portfolio tailored to your specific financial security needs and goals.

The advantages of mutual funds include:

  • Liquidity
  • Diversification
  • Potential for increased returns
  • Expertise of professional investment managers

Depending on your needs and goals, adding mutual funds to your portfolio can help you:

  • Save for retirement or a child's education
  • Build a home or a business
  • Plan for an event or a legacy

Contact us today to find out more about how mutual funds can play a key role in building your financial security plan.

Make your investment decisions wisely. Important information about mutual funds is found in the funds' simplified prospectus. Please read this carefully before investing. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Unit values and investment returns will fluctuate.


 

Segregated fund policies

Segregated fund policies are similar to mutual funds, but they’re only available through life insurance companies. Professional investment managers invest in a variety of individual securities, and the value of your policy’s units increase or decrease with the performance of the segregated funds you select. However, because segregated fund policies are a form of life insurance, they have advantages for some investors.

These advantages can include:

  • Ability to designate a beneficiary to bypass the estate
  • Potential for creditor protection1
  • Savings on potential probate fees, if any
  • Maturity and death benefit guarantees
  • No trustee fees
  • Lifetime income benefit option

We have access to a wide variety of segregated funds. Contact today to find out how segregated funds could strengthen your investment portfolio.

A description of the key features of the segregated fund policy is contained in the information folder.

Any amount that is allocated to a segregated fund is invested at the risk of the policy owner and may increase or decrease in value.

1Creditor protection depends on court decisions and applicable legislation, which can be subject to change and can vary from each province; it can never be guaranteed. Talk to your lawyer to find out more about the potential for creditor protection for your specific situation.

 

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