Investments
Your financial plan is important and there is no one-size-fits-all approach. Every individual has unique goals, timelines and risk tolerance, which means your investment plan should be tailored to you.
Most Common Investment Accounts
Tax-Free Savings Account (TFSA)
A registered account available to Canadian residents that allows you to save and invest money without paying tax on the investment income or withdrawals
Key aspects of a TFSA include:
Tax-Free Growth
All investment earnings inside the account grow tax-free
Tax-Free Withdrawals
You can withdraw funds at any time without paying tax
Contribution Room
Annual limits apply (set by the government), and unused room carries forward
Registered Retirement Savings Plan (RRSP)
An investment account designed to help individuals save for retirement
Key aspects of an RRSP include:
Tax-Deductible Contributions
Contributions reduce your taxable income, lowering your tax bill
Tax-Deferred Growth
Investments grow without being taxed until withdrawal
Contribution Limits
Based on a percentage of your earned income (up to a government-set maximum)
Wide Investment Options
Can hold mutual funds, stocks, bonds, GICs, ETFs, etc
Retirement Focused
Designed for long-term savings to provide income in retirement
Registered Education Savings Plan
A registered account designed to help parents and guardians save for a child’s post-secondary education
Key aspects of an RESP include:
Tax-Deferred Growth
Investments grow tax-free until withdrawn for education
Government Grants
Canada Education Savings Grant (CESG) adds up to 20% on contributions (up to annual and lifetime limits)
Flexible Investment Options
Can hold mutual funds, stocks, bonds, GICs, ETFs, etc
Withdrawals for Education
Funds can be used for tuition, books, and other education-related expenses
