Investments can play a key role in your financial plan. For individuals, a mix of registered and non-registered savings, income and pension plans can help achieve short- and long-term goals. For employee groups, I can offer advice on registered and non-registered savings and pension plans.
- Tax-Free Savings Accounts
- Registered retirement savings plans and Registered education savings plans
- Segregated Fund Policies
- Mutual funds
Investors looking to put their hard-earned savings in an account that is more flexible than an RRSP but still offers tax benefits can consider a new Tax-Free Savings Account (TFSA).
In 2009, the Canadian government introduced a new way for investors to cut down on taxes while saving money. While RRSPs are primarily intended for retirement and allow for income tax benefits, TFSAs allow for quicker access to tax-free savings.
Either alone or combined with other financial products, a TFSA can help you build a strong financial portfolio.
- While contributions are not deductible for income tax purposes, all investment and growth income earned in a TFSA, including capital gains, will not be taxed—even when withdrawn
- Set aside up to $5,500 at year (unused contributions can be carried forward) and watch it grow tax-free in an easy-to-access account
- After a waiting period, re-invest all money withdrawn from the account
- Earnings in the account do not impact benefits that depend on income levels, like the Canada Child Tax Benefit
- All Canadians aged 18 and older are eligible for a TFSA
Contact me today to determine whether a Tax-Free Savings Account is a good choice for you.
A registered retirement savings plan (RRSP) has several advantages. For investors under 72, it can provide tax-deferred compounding investment income and help accumulate savings to achieve long-term retirement goals. It also allows for a variety of choice of specific investment options—from GICs to mutual funds. For families with children, a registered education savings plan (RESP) can help finance post-secondary education.
Some of the advantages of RRSPs and RESPs include:
- Tax-deductible RRSP contributions
- Tax deferral of compounding income and growth
- Based on a family’s net income and the amount contributed, a government RESP grant is available
- When money is withdrawn from an RESP for post secondary education, the student typically pays little tax, due to the low income tax rate of the recipient
Working together, we can examine RRSP and RESP investment options in order to build a customized portfolio that takes into consideration your financial goals, tolerance to risk and timeline. Contact me today to find out more.
Segregated fund policies, which are available through life insurance companies, share similarities to mutual funds. However, they are unique because they can guarantee all or part of the principle amount invested, as per the given contract.
In a segregated fund policy, professional fund managers invest in a variety of individual securities. Depending on the performance of the segregated funds you select, your investment’s unit values will increase or decrease.
As a form of life insurance, it’s important to note that segregated fund policies have distinct advantages for some investors. These can include:
- Potential for creditor protection
- Savings on potential probate fees
- No trustee fees
As a financial services professional, I have access to a wide variety of segregated funds. Contact me today to discuss how they might strengthen your investment portfolio, and to receive an information package about segregated funds.
Note that any amount allocated to a segregated fund may increase or decrease in value, and is invested at the risk of the policyholder.