Whether you are saving money for retirement, a child’s education, a desired trip or just putting away for a rainy day, investing is a key component to aiding in this process. It is through the power of compound interest that your dreams and desires will not be out of reach.
A TFSA is not a traditional savings account. It is a registered savings vehicle that allows you to grow your investments, and earn income on them, tax-free. If you are 18 years of age or older (in Ontario) and have a Social Insurance Number (SIN) you can take advantage of this savings opportunity. You can use your TFSA to save for a large purchase or to supplement your retirement savings plan.
Your TFSA can hold any combination of eligible investment vehicles, such as cash, stocks, bonds, GICs and mutual funds. Tax is not payable on earnings within the TFSA account or when you make withdrawals. However, unlike contributions to your RRSP, contributions to the account are not tax-deductible.
Effective January 2016, the maximum annual contribution to a TFSA is $5,500.
Contributing to an RRSP is still one of the most popular ways to save for your retirement. Contributions are tax deductible and taxes are deferred until you withdraw the money. Canadian Income Tax Act approved assets, include savings accounts, guaranteed investment certificates(GICs), bonds, mortgage loans, mutual funds, income trusts, corporate shares, foreign currency and labour-sponsored funds. Rules determine the maximum contributions, the timing of contributions, the assets allowed, and the eventual conversion to a Registered Retirement Income Fund (RRIF) at age 71.
This is an RRSP that you establish to pay yourself income at maturity, but that your spouse or common-law partner contributes to. A Spousal RSP gives you the ability to contribute to your spouse's RSP and, take advantage of income splitting opportunities. As well, spousal RSPs are an effective tool in planning for a couple's retirement. Typically, a couple with one wage earner is best suited for a Spousal RSP.
An investment option that allows you to transfer money from an RRSP, while deferring taxes on the portion of income that was not taken out. This must be done before the last day of the year in which you turn 71.
Registered education savings plans offer an effective way to maximize the money available to your children or grandchildren when they enrol in a full-time post-secondary program. Anyone – parents, grandparents, other family members and friends – can open an RESP for a child. As the cost of post-secondary education continues to rise, it’s becoming even more important to start saving early for their future education. Your investment representative can help you choose the right RESP solution.
A Registered Disability Savings Plan (RDSP) is a savings plan that is intended to help parents and others save for the long term financial security of a person who is eligible for the disability tax credit (DTC).
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 in income for 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 rollover amounts are included in the beneficiary's income for tax purposes when they are paid out of the RDSP.
The HelloLife retirement income program is a mix of income annuities for certainty and security and segregated funds for potential growth and flexibility. Your MacIntyre Financial team can use HelloLife to help you set up a spending plan that lasts throughout your retirement years.
This is an account set aside to be used as an emergency, such as a major expense, job loss, or illness. The intended use of the fund is to improve financial security by creating a safety net of funds that can be used to meet emergency expenses as well as reduce the need to use high interest debt, such as credit cards, as a last resort. You should try to keep between three and six months’ worth of your living expenses set aside in your emergency fund. Depending on your specific situation and whether or not you have children, carry substantial debt and types of insurance coverage will determine what amount is best for you.
Mutual funds allow you to pool your savings with other individuals in a portfolio of investments managed by professional money managers. Because of the large amount of money in the pool, mutual funds can diversify your portfolio more widely than you may be able to do when investing on your own.
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the Fund Facts before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.
A segregated fund is a pool of money from many individuals that’s invested in a variety of investments by professional fund managers. What makes segregated fund policies unique is that they offer valuable protection features available only through insurance companies. Segregated fund policies offer many benefits to help you reach your retirement and investment goals. These policies can provide potential growth and flexibility for your retirement income portfolio.
Segregated fund policies offer a long-term investment and can provide flexibility for your retirement income portfolio. They also provide death benefit and maturity guarantees. Other benefits include the ability for assets to bypass the estate and potential probate fees, and go directly to your named beneficiaries.
Segregated fund policies with the lifetime income benefit option - Segregated fund policies with the lifetime income benefit option provide potential guaranteed income for life, as well as all the benefits of a segregated fund policy
Buying a home may be the biggest investment you ever make. Your financial security advisor will connect you with a London Life mortgage planning specialist who has the knowledge and experience to help you find a mortgage that meets your needs and that fits your financial security plan. And once you’ve found the right home and the right mortgage, your financial security advisor can help you protect your investment and your family with the right life insurance coverage.
Mortgage insurance - You have two life insurance options after securing your mortgage: insuring through the creditor or insuring through a life insurance company. Mortgage insurance is convenient, but the benefit is limited to the amount owing on the mortgage and is paid directly to the creditor and not your family. Life insurance is paid to your beneficiary and your coverage won’t decrease as your mortgage is paid down.
You may already have accumulated wealth and are looking for ways to preserve as much as possible, whether taking an income or continuing to accrue.
Income distribution series: Investing in income distribution series may be your best option for withdrawing income from your non-registered account in a tax-efficient manner. This investment can provide you with a monthly income and allow you to defer tax. Income distribution series provides monthly cash flow based on a chosen distribution rate of approximately five or eight per cent per year. Rather than requiring you to redeem mutual fund units, the funds start off paying a monthly distribution that comprises in large part your original investment – a return of capital. Some funds may also make a year-end distribution of taxable income in the form of interest, dividends and/or capital gains.
Corporate Class: Help maximize the performance of your non-registered portfolio. Quadrus Corporate Class funds can help you reduce the income tax you pay on your non-registered investments with its capacity to consolidate expenses, income, gains and losses of multiple funds into a single entity. This helps to create tax-efficient distribution yields and ultimately provide compounding benefits for the funds.
An income option that provides regular, guaranteed income payments for as long as you live or, if you choose, for a set period of time. The guaranteed income from an income annuity can help you cover your basic living expenses. There are many income annuity features to help meet your retirement income needs.
Life income fund (LIF), Locked-in retirement income fund (LRIF), Prescribed retirement income fund (PRIF), Restricted life income fund (RLIF)- Investment options that allow you to transfer money from a pension plan, locked-in retirement income account (LIRA), locked-in RRSP, or a restricted locked-in savings plan (RLSP), while deferring taxes on the portion of income that was not taken out. This must be done before the last day of the year in which you turn 71.
Guaranteed interest options (GIOs) provide a guaranteed rate of return. With a GIO and a named beneficiary you get the additional benefits of an insurance policy such as bypassing potential probate, legal and other estate fees on death.
Find the right strategy for selling your business or handing it over to someone else, whether it be an employee, a family member, a friend or another entrepreneur. A good succession plan will help the transfer of your business go smoothly, and allow you to maintain good relationships with employees and business partners. Succession planning helps you protect the legacy of your business, maintain a service for your community, build value for your business, provide financial security for your family and your stakeholders, deal with unexpected events (illness, accident or death) and, prepare for the future.