Safeguard your Future
What are Segregated Funds?
For conservative investors looking to grow their wealth but who are also concerned about minimizing risk potential, segregated fund contracts may provide an ideal solution. The appeal of these contracts is the combination of the growth potential offered by investment funds and the unique wealth protection features of an insurance contract.
Segregated Fund investors can limit their exposure to risk through death, maturity and in some cases, income guarantees, potential creditor protection features, and estate planning benefits. All in a single investment. These Segregated Fund contracts may be well suited for investors concerned about the effects of market volatility.
Segregated fund product offers a diverse selection of investment funds from a variety of Canadian fund managers including CIBC Asset Mangemement, CI Investments, Dynamic Funds, Equitable Asset Management Group (EAMG), Fidelity Investments, Franklin Templeton, Invesco, Mackenzie, Manulife Bank, Manulife Investment Management, Mawer, MFS, Pictet and TD Asset Management.
Whether your style is value or growth, you are seeking fixed income or equity, or you are looking for domestic or foreign, investment options can be tailored to meet your specific objectives. These products provide the protection and flexibility you need.
Registered Education Savings Plan RESP
A Registered Education Savings Plan (RESP) is a flexible and convenient way to save for a child’s future education.
• Federal government incentives are available to qualified student beneficiaries to help RESP savings grow
• Investment income generated in an RESP is tax-sheltered as long as it remains in the plan
• When withdrawn, plan growth and government grants can be taxed at the student’s tax rate (he or she could pay little or no tax on this money)
• There is no annual contribution limit with an RESP, but the lifetime maximum is $50,000 per student beneficiary
• Anyone can open an RESP – parents, guardians, grandparents, other relatives, or friends
• A segregated fund contract offers protective features, including death benefit and maturity guarantee.
• The Segregated Fund RESP includes 75% death benefit and 75% maturity benefit guarantees (reduced proportionally by withdrawals).
Government grants available with RESPs
Basic Canada education savings grant (CESG)
This grant increases the annual RESP contribution by 20% to a maximum of $500 per child per year (carry-forward of grant room can allow up to $1,000 per year) until the child is age 17, up to a maximum of $7,200.
The Additional CESG
Over and above the basic CESG, this federal grant may provide an additional 10 or 20 percent on the first $500 contributed each year. The amount that you can receive depends on the net family income of the child’s primary caregiver.
The Canada learning bond
This is a federal grant of up to $2,000 for an eligible RESP. It’s available to children born after December 31, 2003, whose family receives the Canada Child Benefit (CCB), also known as “family allowance” or “baby bonus”.
TSFA Tax-Free Savings Account
A Tax-Free Savings Account (TFSA) is a savings option that allows you to grow your savings without ever paying tax on the growth within your account. This is unique from traditional savings accounts where you are required to pay tax on the growth earned by your investment. TFSA is also a great option for retirement savings for individuals who are looking for an alternate source of income during retirement, or who expect to be in an equal or higher tax bracket once they retire. TFSA does not affect your eligibility to receive Old Age Security (OAS), Guaranteed Income Supplement (GIS), Goods and Services Tax (GST) credit, or other income-tested benefits and tax credits.
RIF and LIF: Retirement Income Fund and Life Income Fund
Both the Retirement Income Fund (RIF) and the Life Income Fund (LIF) from Equitable Life are ideal options for providing income during retirement. Retirement Savings Plan (RSP) assets transferred to a RIF and pension assets in a LIF continue to grow in a tax-sheltered environment while providing you with control over how your assets are invested. The wide investment selection allows you to change your investment mix as your needs change.
RRSP: Registered Retirement Savings Plan
Government income programs make up part of a retirement plan, but they do not provide the level of income that most Canadians look for during retirement. A Retirement Savings Plan (RSP) is one of the best ways to help ensure your financial security. You may also know it as a Registered Retirement Savings Plan (RRSP). Only when it is set up with Canada Revenue Agency (CRA) is it called an RRSP. Around for over 60 years, the tax structure allows you to defer paying income tax on your deposits and earnings. It is only when you withdraw the money that tax is applied. Since many Canadians have a higher tax rate during their working years than retirement years, this often results in overall tax savings.
GIA Guaranteed Interest Account
A Guaranteed Interest Account (GIA) is an ideal account for saving toward a special purchase, creating an emergency fund, a guaranteed holding of your investment portfolio and even guarding against market volatility. Our GIAs provide the security of the principal with a guaranteed rate of return. GIAs are also Tax-Free Savings Account (TFSA) eligible.
Annuities
A payout annuity is ideal for those who seek guaranteed income for life, or for a set period of time. Payments can be based on a single person or joint life, and payments can be indexed to help cover the costs of inflation.