Investment Options
Note: This page is designed to give very general
information about these products and should not, on its own, be used to constitute any
kind of financial advice. Also, while every attempt is made to update this site on a
regular basis, complete accuracy cannot be guaranteed due to changing regulations. For
more detailed information, click here to
contact us.
Investment Types
*Mutual Fund: A pool of capital that is
managed by an investment company and invested in a number of different products such as
stocks, bonds, commodities and money market securities. For more information, please visit
our Mutual Funds page.
*Managed Solutions: A collection of mutual
funds or pools of capital invested with a specific company that is overseen by
professional managers who continuously monitor and rebalance the portfolio. We work with
many mutual fund companies who offer this type of service, which is always customized to
suit your needs and risk tolerance.
**Guaranteed Investment Certificate (GIC): A
deposit certificate usually issued by a financial institution which guarantees the
investor a specified rate of return over a fixed period of time. For more information,
please visit our GIC's
page
Account Types
Registered Retirement Savings Plan (RRSP): A
tax-sheltered vehicle to save for retirement that can hold a wide variety of investment
products. Contributions are tax-deductible within prescribed limits, and income earned
within an RRSP is not taxed until it is taken out.
Tax Free Savings Account (TFSA): A new
product which acts as an account to provide tax benefits for savings in Canada. Investment
income and capital gains earned within a TFSA are not taxed, even when withdrawn, but
contributions are not tax-deductible for income tax purposes as with an RRSP. Up to $5,000
a year can be contributed.
Registered Retirement Income Fund (RRIF):
RRIFs allow an investor to continue to shelter their savings from tax after an RRSP is
converted. A minimum amount must be withdrawn from the RRIF each year (not including the
year that the plan is opened) and everyone in Canada is required to convert their RRSP to
a RRIF by the end of the calendar year in which they turn 71.
Registered Education Savings Plan (RESP): A
tax shelter used by parents and grandparents to save for their
children’s/grandchildren’s post secondary education. Contributions made to an
RESP accumulate tax-free, and the government pays an additional 20% of these contributions
(up to a maximum of $500 per year) into the plan for children under 18 through the Canada
Education Savings Grant (CESG).
Locked-In Retirement Account (LIRA): A
tax-sheltered account designed to hold transferred pension funds. Unlike an RRSP, money
within a LIRA is “locked-in” and cannot be withdrawn until either retirement or
a certain prescribed age (although there are exceptions). The savings within a LIRA
accumulate without being taxed until used to purchase an annuity or a LIF.
Life Income Fund (LIF): A type of RRIF (see
definition above) that holds accumulations from locked-in RRSPs and provides pension
income for retirement. Amounts in the LIF are tax-sheltered, but withdrawals must be made
each year at a specified amount.
Registered Disability Savings Plan (RDSP):
Another new product designed to help parents of disabled children save for their
child’s future. Contributions to the RDSP are not tax deductible, but they attract
grants at a specified rate from the Canada Disability Savings Grant up to a maximum of
$3,500 per year. The savings within an RDSP accumulate tax free, until it is withdrawn and
taxed in the hands of the beneficiary.
* Offered exclusively through Assante Financial
Management Ltd.
** Offered exclusively through Belmont Village Financial Group
Interested in learning more about what services we can offer
you?
We’d love to hear from you! Click here to
contact us.
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