Invest



Investments can play a key role in your financial security plan. For individuals, a mix of registered and non-registered savings, income and pension plans can help achieve short- and long-term goals. For employee groups, I can offer advice on registered and non-registered savings and pension plans.



 


Tax Free Savings Accounts

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Investors looking to put their hard earned savings in an account that is more flexible than an RRSP but still offers tax benefits can consider a new Tax Free Savings Account (TSFA).


In 2009, the Canadian government introduced a new way for investors to cut down on taxes while saving money. While RRSPs are primarily intended for retirement and allow for income tax benefits, TFSAs allow for quicker access to tax free savings.


Either alone or combined with other financial products, a TFSA can help you build a strong financial portfolio.


  • While contributions are not deductible for income tax purposes, all investment and growth income earned in a TFSA, including capital gains, will not be taxed, even when withdrawn
  • Set aside up to $5,000 a year (unused contribution room can be carried forward) and watch it grow tax free in an easy to access account
  • After a waiting period, reinvest all money withdrawn from the account
  • Earnings in the account do not impact benefits that depend on income levels, like the Canada Child Tax Benefit
  • All Canadians aged 18 and older are eligible for a TFSA

Contact me today to determine whether a Tax Free Savings Account is a good choice for you.

 


Segregated fund policies

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Segregated fund policies, which are available through life insurance companies, share similarities to mutual funds. However, they are unique because they can guarantee all or part of the principle amount invested.


In a segregated fund policy, professional fund managers invest in a variety of individual securities. Depending on the performance of the segregated funds you select, your investment’s unit values will increase or decrease.


As a form of life insurance, it’s important to note that segregated fund policies have distinct advantages for some investors. These can include:


  • Potential for creditor protection
  • Savings on potential probate fees
  • No trustee fees

As a financial advisor, I have access to a wide variety of segregated funds. Contact me today to discuss how they might strengthen your investment portfolio, and to receive an information package about segregated funds.

Note that any amount allocated to a segregated fund may increase or decrease in value, and is invested at the risk of the policyholder.

 


RRSPs

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A registered retirement savings plan (RRSP) has several advantages. For investors under 72, it can allow tax-deferred compound interest and help accumulate savings to achieve long-term retirement goals. It also allows for a variety of choice of specific investment options—from stocks and bonds to mutual funds.


Some of the advantages of RRSPs include:


  • Tax-deductible RRSP contributions
  • Tax deferral of compounding income and growth

Working together, we can examine RRSP investment options in order to build a customized portfolio that takes into consideration your financial security goals, tolerance to risk and timeline. Contact me today to find out more.

 


Participating Whole Life Insurance



Participating Whole Life Insurance combines permanent protection with level premiums payable for life that will never increase. It’s been designed to provide permanent life insurance coverage at a minimum cost, with superior long-term cash surrender value and death benefit growth.


Product features include:


Benefits for individuals:


  • An effective fixed-income investment alternative that provides tax-advantaged growth opportunities within a permanent life insurance policy.
  • The potential to supplement your retirement income
  • Policy loans, with no credit application and flexible repayment schedules
  • Collateral for a personal loan or secured line of credit

Additional benefits for business owners:


  • Tax advantaged payout from your capital dividend account (if eligible)
  • Funding for business buy/sell agreements to help ensure tax effective means of transferring excess corporate assets to the next generation.
  • Financial protection from the loss of a key employee
  • Funding for split dollar agreements
  • Succession planning
  • Additional deposit option – allows you to pay additional premiums, which are used to purchase additional paid-up insurance, enhancing your policy’s death benefit and your ability to accumulate tax advantaged cash value.
  • Optional benefits: applicant death or disability waiver of premium; total disability waiver of insurance; premium payor waiver insurance; accidental death insurance; guaranteed purchase option; renewable and convertible term life insurance; spousal insurance; children’s insurance.

If you have a need for life insurance and you’re looking for a permanent life insurance product built on a foundation of comparatively stable long-term investment returns, managed by a team of professional investment managers, then participating whole life insurance may be the right product for you.

As your Financial Advisor, I can help you select the option that’s right for you.

 


Universal Life Insurance



Universal Life Insurance combines permanent life insurance with a savings fund in one policy that is tax sheltered.

Premiums have a minimum and a maximum amount. Minimum covers the cost of insurance and maximum to keep the policy tax sheltered. As long as there are sufficient funds to maintain the policy, the premium payment and premium frequency are flexible.


The investments within the policy are chosen and managed by the client, to reflect your own risk tolerance. The investments can be guaranteed interest options, equity and bond index options. There are a variety of investment options to choose from.


Advantages:


  • Flexibility of premium payments
  • Ability to manage the investment mix
  • Can have a significant equity investment component in insurance program if this type of investment option is chosen.

 


Group retirement and savings plans

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For business owners, group retirement and savings plans can play a key role in attracting and retaining quality employees.


Just like you, your dedicated employees are working towards a safe, secure future. Either provided independently or paired with group benefits, a group savings plan is a convenient, flexible and affordable way to help your employees reach their long-term financial goals.


Employees gain instant tax savings for their Group RRSP contributions, since they are made using pre-tax payroll deductions. They also receive the peace of mind that comes from knowing every month they are building towards retirement.


I can help you and your valued employees choose group retirement and savings products. We will design an investment plan tailored to fit the needs of everyone involved. Choose from products like:


  • Registered retirement savings plans designed specifically for groups
  • Deferred profit sharing plans
  • Defined contribution pension plans
  • Non-registered savings programs

Contact me today to learn about how group retirement and savings plans can benefit your business.