Types of Savings and Investment Accounts:

  • Registered Retirement Savings Account (RRSP)
  • Locked-In Savings Account (LIRA)
  • Tax Free Savings Account (TFSA)
  • Non-registered Account
  • Registered Education Savings Account (RESP)
  • Bank Account

These accounts can be used for ‘savings’ or ‘investments’ depending on your needs. Savings accounts are typically for shorter term needs and investments for longer term. However, your situation may require otherwise and it is important to understand you and your needs.

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Is a TFSA a good investment since it is a ‘savings’ account?

Often misunderstood is the Tax Free Savings Account. You have the ability to put your money into this account and earn returns similar to any of the other accounts. The word ‘savings’ seems to confuse people, although the RRSP and RESP also use the word. A TFSA can invest in the market just like the other accounts.

The advantage of a TFSA is your money grows tax free, so if you earned $10,000 within your TFSA you do not have to pay income tax on that money.

Remember:

Time + Amount Saved + Your Return = Your Result

Lack of one requires overcompensation by the other two.

Health & Dental Benefits

If you do not have group benefits through your employer you may want to consider the implications of medical and dental expenses for you and your family. There are numerous options available to you based on you and your family’s needs.

If you are leaving a group benefit plan you will want to look at options for an individual plan that covers your pre-existing conditions.

If you are a business owner you may want a review of your group benefits, or to put a benefit plan in place. We are able to provide options that suit your business and your employees. If you are incorporated you may also want to consider a Health Spending Account.

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Nest Wealth

We have partnered with Nest Wealth for portfolio management. Nest Wealth offers low cost customized ETF (exchange-traded fund) portfolios with a paperless digital onboarding process. With their innovative wealth technology, focus on long-term goals, low minimums, and transparency Nest Wealth can help you save more for your future. You determine your risk tolerance and Nest Wealth provides various third-party ETFs to fit your need.

Segregated Funds

Segregated Funds are investments offered through a Life Insurance Company. Unlike other investments, benefits paid from a segregated fund contract can bypass your estate upon death. Proceeds can be paid directly to your beneficiaries without being subject to the estate administration/probate process and associated taxes or fees. This allows you to leave a legacy to your heirs quickly, privately and cost-effectively.

Manulife Bank

Manulife Bank is a virtual bank that offers services remotely via online and mobile banking. Services such as high-interest chequing and savings accounts, credit cards, lines of credit and mortgages, including the Manulife One.

Guaranteed Interest Account (GIA)

A Guaranteed Interest Account (GIA) is similar to a GIC which guards against market volatility by providing security of principle with a guaranteed rate of return. 

Payout Annuities

A Payout Annuity is a lump sum investment that provides a guaranteed periodic income. Guaranteed income is important to cover fixed costs during retirement.