The following are some of the investments we use to create each clients portfolio based on their goals and risk tolerance.

Guaranteed Investment Certificate (GIC) – A low risk investment option that guarantees your principal deposit and offers a set amount of fixed interest.  The principal is at risk only if the bank or financial institution defaults. Please see the following link for details on CDIC Deposit insurance. http://www.cdic.ca/Coverage/Pages/default.aspx

Term Deposit – A deposit held at a financial institution that has a fixed term and a fixed rate. These terms can range depending on the clients goals.

Segregated Fund – A type of pool investment that is similar to a mutual fund, but is considered an insurance product. This investment can have specific term or death benefit guarantees that allow for less risk to the investor. A Segregated fund also allows for a Non-Registered account to list a beneficiary. This can be a very important piece of the puzzle when completing the Estate Plan.

Types of Accounts:

Registered Retirement Savings Plan (RRSP) – This investment can be one of the ways you save for your retirement. Contributions made to an RRSP are tax deductible and taxes are deferred until the money is withdrawn from the plan. An RRSP can contain stocks, bonds, mutual funds, GICs, contracts and even mortgage-backed equity.

Registered Retirement Income Fund (RRIF) – When you are ready to start receiving payments from your RRSP you will convert your plan into a RRIF. RRIF payouts are considered a part of normal income and are taxed as such by the Canadian Revenue Agency in the year you receive money from this plan. You must convert your RRSP to a RRIF by the end of your 71st year.

Pension Plans: Locked-In Retirement Account (LIRA), Life Income Fund (LIF), Registered Pension Plan (RPP) – This is another type of retirement savings plan. A pension plan has certain regulations that need to be followed depending on the jurisdiction it was established in. There are set minimum and maximum withdrawals that allow for the plan holder to receive income throughout their retirement.

Tax Free Savings Account (TFSA) – An account that does not charge taxes on any contributions, interest earned, dividends or capital gains, and can be withdrawn tax free. Tax-free savings accounts were introduced in Canada in 2009 with a limit of $5,000 per year, which is indexed for subsequent years. The contributions are not tax deductible and any unused room can be carried forward indefinitely. This savings account is available to individuals aged 18 and older and can be used for any purpose. Current limit is $5,500 per year- increased in 2013.

Registered Education Savings Plan (RESP) –is an investment vehicle used by parents to save for their children’s post-secondary education in Canada. The principal advantages of RESPs are the access to the Canada Education Savings Grant (CESG) and a source of tax-deferred income. An RESP is a tax shelter, designed to benefit post-secondary students. With an RESP, contributions are, or have already been, taxed at the contributor’s tax rate, while the investment growth (and CESG) is taxed on withdrawal at the recipient’s tax rate. The government of Canada  will contribute 20% of the first $2,500 in annual contributions made to an RESP. After changes introduced in the 2007 Canadian federal budget, the government may also contribute up to $500 per year to a participating RESP. This income is available upon withdrawal from the RESP by a post-secondary recipient, with a maximum lifetime contribution of $50,000.

Registered Disability Savings Plan (RDSP) – The Registered Disability Savings Plan (RDSP) is a powerful savings tool similar to a registered education savings plan, but designed specifically for people living with a disability. The plan allows those living with a disability financial security well into older age avoiding the poverty trap and enabling independence. You should consider opening an RDSP if you have a long-term disability and are:

  • eligible for the Disability Tax Credit (disability amount);
  • under the age of 60 (if you are 59, you must apply before the end of the calendar year in which you turned 59);
  • a Canadian resident with a Social Insurance Number (SIN); and looking for a long-term savings plan.

You may contribute any amount to your RDSP each year, up to the lifetime contribution limit of $200,000. With written permission from the RDSP holder, anyone may contribute to the RDSP.

Non-Registered Plan – This is a savings plan that is created with ‘after tax money’. You will not receive a tax deduction when money is contributed to this plan, instead you will only be taxed on the growth of the plan ie. Interest, Capital Gains, Dividends etc.

Lending

Full Shelf Lending

  • Loans
  • Line of Credit
  • Credit Cards
  • Investment Loans
  • Mortgages (through referral)

Insurance

Life Insurance – is a contract between an Individual (Insured) and Insurance Company (Insurer), where the Insurer promises to pay a designated beneficiary a sum of money in exchange for a premium and this sum of money will be paid upon the death of the Insured person. The policy holder typically pays a premium, either monthly or as an annual lump sum.  Depending on the contract, other events such as terminal illness or critical illness may also trigger payment.

There are different types of life insurance options available depending on your need:

  • Term Insurance
  • Whole Life Insurance
  • Universal Life Insurance
  • Term to 100

Disability Insurance (DI) – is a form of insurance that insures the beneficiaries (your) earned income against the risk that a disability creates a barrier for you to complete the core functions of your work.

Critical Illness Insurance (CI) – is an insurance product, where the Insurance Company (insurer) will make a lump sum cash payment if you (the policyholder) are diagnosed with one of the critical illnesses listed in the insurance policy and survive for 30 days from diagnosis.

Long Term Care Insurance (LTC) – helps provide for the cost of long-term care beyond a predetermined period. Long-term care insurance covers the cost of care that is generally not covered by government medical programs. Individuals who require long-term care are not sick in the traditional sense, but instead, are unable to perform the basic activities of daily living (ADLs) such as dressing, bathing, eating, toileting, continence, transferring (getting in and out of a bed or chair), and walking.

Group Benefits – Benefits available through your employer that allow for additional coverage towards medical, dental, health and other basic needs. The Benefit Plan can also provide Disability, Life and Critical Illness Insurance coverage. Depending on the plan, the employer can either pay for a portion or all of the premium cost for their employees.

Individual Benefit Coverage– When you are self-employed or work for a company that does not provide group benefits you can purchase your own Individual Benefit Plan. For a monthly premium you can choose to have additional medical coverage, dental coverage, travel insurance coverage etc. You customize the plan that works for your needs and your budget.

Travel Insurance – This insurance covers you in case a medical emergency happens when you are travelling out of the country. It can also provide additional coverage in areas such as trip cancellation and loss of luggage.