Investments
Figuring out the best ways to invest your money isn’t always easy. A smart investor will likely tell you that one of the keys to financial success is diversification. This is exactly why we strongly suggest investing in mutual funds.
Keep it simple.
A mutual fund is a professionally managed pool of money invested by people like you. There are many different types of mutual funds, each designed for a different type of investor with a different financial profile. When you buy a mutual fund, you are pooling your money with other investors who share your investment profile and your objectives.
Think of it as a way to invest your money in markets that you find appealing and want dedicated professionals managing the portfolio of stocks on your behalf.

RRSP Why Invest
Mutual funds are offered through Investia Financial Services Inc. The particulars contained herein were obtained from sources which we believe reliable but are not guaranteed by us and may be incomplete. The opinions expressed have not been approved by and are not those of Investia Financial Services Inc. This website is not deemed to be used as a solicitation in a jurisdiction where this Investia representative is not registered.
Information about Mutual Funds
Mutual funds are based on a simple principle: pooling your money with that of many other investors in order to offer you access to global markets and a large selection of investments, as well as the flexibility to invest whatever you want, whenever you want.
Because there are thousands of mutual funds available across Canada in order to assist our clients with creating quality portfolios, we use software to research and select only those mutual funds that meet each client’s risk tolerance and portfolio performance objectives.
Before investing, there are number of key details that every investor should first understand about mutual funds.
Additional Investments We Can Assist With
RRSP
Registered Retirement Savings Plan (RRSP)
Primary retirement savings plan tool, the RRSP lets you accumulate money for retirement. If you have employment income, you can contribute until December 31 of the year you turn 71. The registered retirement savings plan (RRSP) is a flexible savings tool that has a double benefit: your contributions provide you with a tax deduction and your investment income accumulates in a tax shelter.
Features and Benefits of an RRSP
- Each year, you can contribute a maximum amount equal to 18% of your taxable income or, if you have a high income, the ceiling set by the government.
- You can defer unused contribution rights to subsequent years.
- The amount of your contributions is deducted from your taxable income, which could entitle you to a tax refund.
- Your investment income is only taxed when you withdraw it from your RRSP.
- You can convert your RRSP into a registered retirement income fund (RRIF) or another retirement income, at the latest on December 31 of the year of your 71st birthday.
LIRA
Locked-In Retirement Account (LIRA)
- If you change jobs, you can transfer the amounts you have accumulated in your employer’s retirement plan into a LIRA.
- The amounts invested in a LIRA are locked-in, which means that they cannot be withdrawn before retirement. They can only be used for retirement income.
Employer Plan
- When you retire, in addition to your RRSPs, you will also be able to rely on your employer’s supplemental pension plan, if you have one.
- The two main types of supplemental pension plans are defined contribution and defined benefit plans.
RRIF, LIF & Annuities
When you reach retirement age, several income options are available to you:
Registered Retirement Income Fund (RRIF)
- The RRIF is an extension of the registered retirement savings plan (RRSP). It allows you to make the best use of the savings you have accumulated throughout your working life: you periodically withdraw a portion of your savings and continue to accumulate tax-sheltered income.
- You are required by law to withdraw a minimum annual amount from your RRIF. Over and above that amount, all periodic and lump sum withdrawals are taxable at source.
Life Income Fund (LIF)
- A LIF acts as an extension of a locked-in retirement account (LIRA). It allows you to periodically withdraw a portion of your savings accumulated in a pension fund and receive retirement income as you need it. A LIF is similar to a RRIF, except for the source of the funds and the withdrawal of a maximum annual amount.
- You are required by law to withdraw a minimum amount from your LIF, but you cannot withdraw more than the maximum annual amount. However, it is now possible to withdraw a higher annual income in exceptional situations.
Annuity
- The annuity is an ideal investment if you want to guarantee the payment of your fixed expenses throughout your life. It allows you to convert a portion of your savings into a fixed and guaranteed income that you receive on a regular basis. You can receive this amount for a specific period or for your lifetime. Highly volatile stock markets and low short-term interest rates make it a sound choice.
- With the RRIF and the LIF, you can periodically withdraw a portion of your retirement savings. The annuity offers fixed guaranteed payments for life.
RRSP Loan
In the event of a temporary cash shortage, an RRSP loan allows you to continue to contribute to your RRSP.
Using your tax refund, you can increase your RRSP contributions while keeping the same monthly payments to pay off your loan.
Benefits
- You receive a higher tax refund.
- You benefit from your unused contributions.
- Your reach your savings objectives more quickly.
TFSA
Tax Free Savings Account
The TFSA stands out because of its flexibility: your savings grow tax-free and you can withdraw the amounts whenever you like without paying taxes. This can be the ideal complement to the registered retirement savings plan (RRSP). The tax-free savings account (TFSA) can be a good savings tool to grow your money in a tax shelter, since the amounts invested are available at all times.
All Canadian residents age 18 years and over can open a TFSA.
TFSA Features and Benefits:
- Grow your savings in a tax shelter: the income generated and amounts withdrawn are non-taxable.
- You can make withdrawals for any amount at any time and without penalty, and the amounts withdrawn can be redeposited starting the next year.
- Unused contribution room accumulates indefinitely.
- You can assign TFSA assets to guarantee a loan.
- There are no restrictions on how you use the amounts withdrawn from your TFSA.
- The maximum annual amount that you can pay into your TFSA is set by the federal government each year and is independent of income. The annual TFSA limit for the year 2022 is $6,000.
Non Registered Savings
Non-registered savings plans play the same role as personal savings accounts. You can accumulate savings to carry out your plans (education, trips, a house, etc.) or increase your retirement income.
If you want to accumulate short-term amounts (safety cushion, vacation, etc.) or if you have reached an RRSP contribution limit, non-registered savings is a solution to consider.
Benefits:
- Your protection against financial market fluctuations could reach and even exceed 100% of the invested capital.
- We ensure the continuity of your contributions in the event of disability (certain conditions apply).
- With the majority of investment instruments, you have access to your capital and taxes are not withheld. However, your investment income is taxable.
RESP
Registered Education Savings Plan
Benefits
- The RESP is specially designed to accumulate amounts for a child’s post-secondary studies.
- The money accumulated in an RESP is meant to cover tuition fees and all study-related financial expenses, including housing, school supplies, food and transportation fees.
- The investment income from an RESP accumulates in a tax shelter as long as it’s not withdrawn from the plan.
How to accumulate more?
The federal government has created the Canada Education Savings Grant to encourage parents to invest in their children’s post-secondary education. This grant corresponds to 20% of the annual contributions paid into an RESP, up to $500 per year, per beneficiary. The maximum grant paid per beneficiary cannot exceed $7,200 for life.
Make your investment decisions wisely. Important information about mutual funds is found in the funds’ simplified prospectus. You can obtain a copy of this from your investment representative. Please read this carefully before investing. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Unit values and investment returns will fluctuate.
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