Investments Banking
RRSP's
Registered Retirement Savings Plans are an investment tool available to all working Canadians. RRSP’s are basically the same as any traditional investment in Stocks ,Bonds, Mutual Funds, GIC’s but are registered with the government. RRSP plans are designed to provide you with a tax deduction on deposit so that you may receive a refund this year while saving for your future.
There are a couple distinct advantages of RRSP’s
- Tax deductibility
- Tax Deferred growth
Please remember that you are not buying an RRSP but contributing to a Registered Retirement Savings Plan. Your RRSP can contain different investment vehicles, such as GIC’s, Segregated Funds, Mutual Funds and Stocks.
TFSA
A Tax free savings account is the newest savings vehicle available to Canadians. It was designed to help Canadians save while providing tax sheltered growth, meaning that any growth on the investments held in the TFSA will not be taxed when the money is withdrawn. A TFSA should be used to try and generate the most growth possible or placing your riskier investments within as to maximize the advantage of this type of account.
TFSA’s can hold the same assets as RRSP’s but are treated much differently from a tax perspective . You do not receive any tax break up front from a TFSA.
The maximum contribution limit for TFSA’s for 2013 is $5,500 per family member.
TFSA Advantages:
- Tax Sheltered Growth
- Easy to make withdrawals
- Promotes Saving
RESP
An RESP is a Registered Education Savings Plan and is designed to help parents save for their child’s education. AN RESP can hold the same investments as an RRSP or TFSA and any contributions made to your childs RESP is eligible for a government grant of 20% of contributions up to a max. grant of $500 a year.
RESP advantages:
- Government Grant of 20% on first $2500 of annual contributions
- Forced savings for Children’s education
G.I.C.
A GIC or Guaranteed Investment Certificate is an interest bearing investment and one of the simplest investments to understand. You purchase a GIC and in exchange you will receive a set interest rate per year on that investment. You can purchase a GIC for varying terms from 90 days to 5 or even 10 years. GIC’s are some of the safest investments around but as you know with investing the greater the risk you are willing to take the greater the reward. Having said that GIC’s generally provide a pretty poor return vs other investment alternatives. In addition interest income is taxed at 100% so GIC’s are one of the most heavily taxed forms of investment income.
Ex. GIC of $100,000 @ 3% interest for 5 years
Interest Earned per year= $3,000.00
While GIC’s are not the greatest investment they are a valuable component to your overall financial plan. They are a safe and transparent investment which many people appreciate.
Annuities
Annuities provide you with the security and predictability of guaranteed income payments for life or over a specific term.
Ideal for the Wealth Transfer with the Back to Back Strategy
Key Features and Benefits
- Guaranteed Income for you and your loved ones
- Guaranteed Income for LIfe
- Guaranteed Income for a Specific Term
Easily enhance the enheritance for your loved ones with an Insured Annuity Strategy.
Bank Accounts
We offer high interest saving accounts for personal and business from Manulife.
