Investments & Savings

Investment and savings plans help grow your wealth and secure your financial future by providing structured methods to save money and invest in various assets, ensuring long-term financial stability and achieving your financial goals.

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PLEASE SELECT ONE OF THE INVESTMENT OPTIONS

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Mutual Funds

Segregated Funds

TFSA - TAX FREE SAVING

ACCOUNT

RRSP - REGISTERED RETIREMENT SAVINGS PLAN

RESP - REGISTERED EDUCATION SAVINGS PLAN

RDSP - REGISTERED DISABILITY SAVINGS PLAN

FHSA - FIRST HOME SAVINGS

ACCOUNT

MUTUAL FUNDS

MUTUAL FUNDS IS A PROFESSIONALLY MANAGED INVESTMENT WHICH IS WELL-DIVERSIFIED

  • The investment includes stock, bonds, money market instruments and other assets.

  • The funds include assets from various industries and companies, as well as securities from different countries.

  • Depending on what kind of fund you will choose, it can be a more risky or less risky portfolio or a different portion of various types of assets (equities, fixed income, cash and cash equivalents, real estate, commodities, futures, and other financial derivatives). For example, a fund can hold 35% equities, 15% cash, 50% fixed income.

  • An investor will pay a fee (MERs) for managing their portfolio and incurred expenses.

  • However, investors can save money by not paying fees to buy individual stocks or bonds from each company and have diversification because it will come as a package.

segregated funds

SEGREGATED FUNDS - FUNDS COMBINING INSURANCE AND INVESTMENT

Segregated Funds work the same way as mutual funds, are managed by professionals, and have diversification (mixed stocks, fixed income, and commodities in different industries and companies). Additionally, such funds have protection from losing your investment.

How insurance works:

Segregated funds provide guarantee protection from 75%-100% of your investment on:

  • Your death – guaranteed death benefits

  • Maturity (when your money is locked for a certain period of time, most common period 10, 15 years) – the principal is guaranteed

You can buy funds through insurance companies or insurance brokers.

Similarly to mutual funds, segregated funds have fees (MERs) which are usually higher than those for mutual funds because they include insurance.

However, some insurance companies offer affordable and similar fees to the ones paid for mutual funds.

Segregated funds also have a unique feature, creditor protection.

If the investor dies, the money will go directly to their beneficiaries, and thereby there will be no probate fees.

TFSA - TAX FREE
SAVINGS ACCOUNT

A TAX-FREE INVESTMENT INCOME

  • The main purpose of this account is to get tax-free on investment income.

  • The main difference from RRSP is that you will be paying tax to be able to use the money, there is no tax-deferral.

  • However, there are no fees for withdrawal for the same reason as you already paid taxes on this money.

  • This product will help you to invest without paying any tax on the investment income. It is subject to a maximum contribution per year and overall

    limit.

  • To identify your contribution room, you can check your Notice of Assessment or read more on the Government website.

RESP - REGISTERED EDUCATION
SAVINGS PLAN

SAVE MONEY FOR YOUR CHILDREN'S EDUCATION

  • All contributions are made after tax deduction but contributors do not have to pay tax on the investment.

  • Some tax implications will be in place when the beneficiary (or contributor) withdraws this money, but typically if a student (beneficiary) uses this money for education and living expenses, they will be taxed at a lower rate.

  • The Canadian Education Savings Grant (CESG) allows to add to your contribution up to 20% and up to $2500 per year. Maximum lifetime grant per beneficiary is $7200.

RDSP - REGISTERED DISABILITY
SAVINGS PLAN

A SAVINGS PLAN THAT IS INTENDED TO HELP PARENTS AND OTHERS SAVE FOR THE LONG TERM FINANCIAL SECURITY

  • Contributions to an RDSP are not tax deductible and can be made until the end of the year in which the beneficiary turns 59.

  • Contributions that are withdrawn are not included as income to the beneficiary when they are paid out of an RDSP.

  • However, the Canada disability savings grant (grant), the Canada disability savings bond (bond), investment income earned in the plan, and the proceeds from rollovers are included in the beneficiary’s income for tax purposes when they are paid out of the RDSP.

FHSA - FIRST HOME
SAVINGS PLAN

SAVE FOR THE PURCHASE OF YOUR VERY FIRST HOME

  • Contributions to an FHSA are tax-deductible, similar to an RRSP (Registered Retirement Savings Plan), meaning you can reduce your taxable income by the amount you contribute.

  • Withdrawals from an FHSA for the purpose of buying a first home are tax-free, similar to a TFSA (Tax-Free Savings Account). This provides a double tax benefit: tax-deductible contributions and tax-free withdrawals.

  • The contribution limit for an FHSA is $8,000 per year, with a lifetime limit of $40,000. Unused contribution room can be carried forward to future years, allowing for flexible saving.

  • To be eligible to open an FHSA, you must be a resident of Canada, at least 18 years old, and a first-time homebuyer (meaning you have not owned a home in the current year or the previous four calendar years).