Investments
Segregated Funds
Segregated funds are investment products that are offered by insurance companies. They offer a rate of return and have a diverse choice as well as a guarantee that your investments will hold some or all their value.
Seg Funds are unique compared to other investments because they are creditor protected. One of the key benefits of seg funds is that they offer a guarantee of principal, which means that investors are protected from market downturns. This guarantee typically ranges from 75% to 100% of the original investment, depending on the specific product and the insurance company offering it. They offer what is known as a “Reset” usually every 1 to 3 years which resets the guarantee at the number your investment has grown to.
Segregated funds offer excellent estate planning benefits that are often overlooked by most individuals. They are a very crucial part of the estate and financial planning process. Contact us to learn more about how segregated funds can fit into your investment portfolio and help you take care of your estate and reach your financial goals.
RRSP, RRIF
An RRSP (Registered Retirement Savings Plan) is a government-approved investment account designed to help Canadians save for retirement. It allows you to contribute pre-tax income, so you can reduce your taxable income while saving for the future.
You can claim your contributions as a deduction on your income tax, reducing the amount of taxes you pay now. This tax deferral can help you accumulate more money for retirement. You can take the refund you get at tax time every year and roll it over into your RRSP for the next year. We call this the RRSP Roll and we utilize it to help our clients achieve the maximum amount of growth every year.
Your investments grow tax-free within the RRSP until you withdraw them at retirement age. You can share your RRSP contributions with your spouse, This is called income splitting and it can reduce your overall tax burden.
An RRIF (Registered Retirement Income Fund) is a type of retirement income plan that can be set up with the funds from your RRSP. It provides you with a regular stream of income during retirement, and you are required to withdraw a minimum amount each year.
Once an individual reaches the age of 71, they are required to convert their RRSP into a RRIF, which requires them to withdraw a minimum amount each year as taxable income. The minimum amount that must be withdrawn each year is determined by a formula based on your age and RRIF value.
It's important to note that the tax implications of a RRIF can be complex. Contact us today to learn how to best utilize this retirement savings option.
As an independent broker, we can help you with a customized retirement plan that takes into account your RRSP and future RRIF withdrawals. Book a consultation with us today so that we can get started planning for your future!
TFSA
A Tax-Free Savings Account (TFSA) is a financial savings instrument that allows Canadians to invest and earn tax-free income. The government started the program in 2009 to encourage Canadians to save more and put money aside for the future.
Contributions to the TFSA are not deductible for income tax purposes, but any growth inside the TFSA is tax-free even when you withdraw from it.
A Tax-Free Savings Account is a bit of a misleading term. You can use it for straightforward savings, but it may be better to think of it as an investment holding account and save your money for the future like an RRSP. This is typically a better way to utilize a TFSA as you can put the tax-free growth aspect to good use over years of compounding. A TFSA is a flexible savings option that allows for a range of investment options much like an RRSP does.
If you're interested in making the most of your Tax-Free Savings Account (TFSA), contact us today so we can help you select the best investment options that align with your financial goals and risk tolerance.
GIC’s
Guaranteed Investment Certificates (GICs) is a type of investment product that provides a guaranteed rate of return over a fixed term. This term can typically be between 90 days and 30 years with 1-5 years being the most common.
With a GIC, you deposit a lump sum of money for a specific amount of time and then get a guaranteed return after the term is over. GICs are a great option for those who are risk-averse or looking for a stable, low-risk investment option.
If you’re interested in learning more about how GIC’s fit into your investment portfolio, contact us today so we can get planning for your future.
Group Pension Plans
A Group Pension Plan is a retirement savings plan offered by an employer to its employees. This plan allows employees to save a portion of their income for retirement, with contributions made by both the employee and employer.
Group RRSPs are becoming increasingly popular with employers offering the same options as other types of plans. Contributions made by employers form part of the employee's deduction limit and are taxable income, offset by an RRSP contribution receipt. Defined Contribution Plans and Defined Benefit Plans are other forms of common plans offered
Defined Contribution Plans involve contributions from both the employee and employer, with the retirement benefit based on investment performance. Defined Benefit Plans offer a guaranteed retirement benefit based on factors such as years of service and salary. If an employee leaves their job, they can usually take their contributions with them if they leave the company.
If you are an employee and have a Group Pension Plan through your work, we can go over your plan with you and evaluate if it will meet your goals now and in retirement.
Our team will assist employers in selecting the best type of Group Pension Plan for their employees, as well as provide ongoing guidance and support to ensure the plan remains effective and meets the needs of the employees.
Contact us today to book a free consultation and learn more about Group Retirement Plans.
High-Interest Cash Accounts
High-interest cash accounts can offer a competitive return on their deposits without locking people into a specific fixed rate or term.
They are good to use for people who want a safe place to park their cash for near-future use and for those who wish to stay out of the market temporarily. It can be used as a “just-in-case” account to store your emergency fund or extra cash or as an everyday banking account like a typical chequing.
They offer a higher interest rate than a traditional saving account at your bank while giving you the option of withdrawing whenever you like. Wouldn’t it be nice to have a bank account offering you usually a 5x greater interest rate than a traditional bank for doing nothing extra?
Contact us today to learn how we can help you set up a high-interest cash account to start building and preserving your wealth.