Making informed desictions in Colony
Investment
& Protecting Your Future
Making informed desictions in Colony
Investment
& Protecting Your Future
Services
Segregated Funds in Canada
Segregated Funds in Canada
Read moreRegistered Retirement Savings Plan (RRSP)
Retirement planning in Canada
Read moreRegistered Education Savings Plans and related benefits (RESP)
Registered Education Savings Plans and related benefits (RESP)
Read moreTax free saving accounts (TFSA)
Tax free saving accounts (TFSA)
Read moreRegistered disability savings plan (RDSP)
Registered disability savings plan (RDSP)
Rad more
Segregated Funds in Canada
Segregated Funds,are an investment product sold by life insurance companies. They are individual insurance contracts that invest in one or more underlying assets, such as a mutual fund . Unlike mutual funds, segregated funds provide a guarantee to protect part of the money you invest (75% to 100%). Even if the underlying fund loses money, you are guaranteed to get back some or all of your principal investment. But you have to hold your investment for a certain length of time (usually 10 years) to benefit from the guarantee. And you pay an additional fee for this insurance protection.
Registered Retirement Savings Plan (RRSP)
An RRSP is a retirement savings plan that you establish, that we register, and to which you or your spouse or common-law partner contribute. Deductible RRSP contributions can be used to reduce your tax.
Any income you earn in the RRSP is usually exempt from tax as long as the funds remain in the plan. You generally have to pay tax when you receive payments from the plan.
Registered Education Savings Plans and related benefits (RESP)
The Registered Education Savings Plan (RESP) is a long-term savings plan to help people save for a child’s education after high school, including trade schools, CEGEPs, colleges, universities, and apprenticeship programs. An adult can also open an RESP for themselves.
When you open an RESP, you can ask your financial institution (the promoter) to apply for benefits like the Canada Learning Bond (CLB) and the Canada Education Savings Grant (CESG). If the child is eligible, these benefits will be received in the RESP to help with the cost of the child’s education. Eligible expenses can include tuition, books, tools, transportation, and rent. British Columbia and Quebec also offer provincial benefits.
Adults born in 2004 or later may also receive the CLB for themselves until the age of 21.
Tax free saving accounts (TFSA)
The TFSA program began in 2009. It is a way for individuals who are 18 years of age or older and who have a valid social insurance number (SIN) to set money aside tax-free throughout their lifetime.
Contributions to a TFSA are not deductible for income tax purposes. Any amount contributed as well as any income earned in the account (for example, investment income and capital gains) is generally tax-free, even when it is withdrawn.
Administrative or other fees in relation to a TFSA and any interest on money borrowed to contribute to a TFSA are not tax-deductible.
When you open an RESP, you can ask your financial institution (the promoter) to apply for benefits like the Canada Learning Bond (CLB) and the Canada Education Savings Grant (CESG). If the child is eligible, these benefits will be received in the RESP to help with the cost of the child’s education. Eligible expenses can include tuition, books, tools, transportation, and rent. British Columbia and Quebec also offer provincial benefits.
Adults born in 2004 or later may also receive the CLB for themselves until the age of 21.
Registered disability savings plan (RDSP)
A registered disability savings plan (RDSP) is a savings plan intended to help an individual who is approved to receive the disability tax credit (DTC) to save for their long-term financial security.
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 as income to the beneficiary when 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 the proceeds from rollovers are included in the beneficiary’s income for tax purposes when paid out of the RDSP.
For more information on RDSPs, go to Savings and pension plan administration.
What is an FHSA?
An FHSA is a tax-free savings account designed to help future homeowners save for the purchase of a qualifying first home in Canada.
Combining the advantages of an RRSP and a TFSA, the FHSA gives you a deduction that reduces your annual taxable income and allows you to generate tax-free returns.
You can then use the accumulated funds to finance the purchase of a first home without having to pay taxes on withdrawals, and without having to repay the amounts withdrawn from the FHSA.
Investment planning involves :
- setting financial goals,
- Assessing your current financial situation.
- Risk tolerance.
- Choosing an investment strategy.
- Selecting appropriate investments.
- And regularly reviewing and adjusting your plan to stay on track.
