{"id":393,"date":"2022-06-27T18:12:39","date_gmt":"2022-06-27T18:12:39","guid":{"rendered":"https:\/\/financialadvise.ca\/?page_id=393"},"modified":"2024-07-03T06:01:52","modified_gmt":"2024-07-03T06:01:52","slug":"investment-planning","status":"publish","type":"page","link":"https:\/\/financialadvise.ca\/investment-planning\/","title":{"rendered":"Investments"},"content":{"rendered":"

[et_pb_section fb_built=”1″ _builder_version=”4.16″ _module_preset=”default” background_color=”#3a5030″ background_color_gradient_start=”#4c683f” background_image=”https:\/\/financialadvise.ca\/wp-content\/uploads\/2022\/06\/calg.jpg” background_blend=”overlay” custom_padding=”65px||65px||true|false” custom_css_main_element=”background-attachment: fixed;” global_colors_info=”{}”][et_pb_row _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.16″ _module_preset=”default” text_text_color=”#FFFFFF” text_font_size=”18px” text_letter_spacing=”3.7px” header_font=”Barlow Condensed|300|||||||” header_text_color=”#FFFFFF” header_font_size=”48px” header_letter_spacing=”-0.1px” text_orientation=”center” global_colors_info=”{}”]<\/p>\n

Investing For Success<\/h1>\n

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Investing For Success<\/h2>\n

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Investing for success means investing in a way that meets your financial goals, risk tolerance, and time horizon. A wise investment plan is essential to your long-term financial health. We can help you invest in the right ways for your needs by reviewing your portfolio and making recommendations that meet your goals.<\/span><\/p>\n

When it comes to investing, it can feel overwhelming. There’s the research, strategizing, and all the paperwork you need to sift through. But don’t let that pique your anxiety\u2014we provide you with financial clarity so you know that you’re on track to your goals.\u00a0<\/span><\/p>\n

In our first meeting, we’ll take the time to get to know you. Then, we want to know your investment goals \u2013 whether saving up for a house, your children’s education, your retirement, a vacation property, or all of them!<\/span><\/p>\n

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[\/et_pb_text][et_pb_divider show_divider=”off” _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_divider][et_pb_button button_url=”https:\/\/calendly.com\/info-financialadvise” button_text=”Book A Meeting” _builder_version=”4.21.0″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_button][et_pb_blurb use_icon=”on” font_icon=”||divi||400″ image_icon_background_color=”RGBA(255,255,255,0)” icon_placement=”left” content_max_width=”948px” _builder_version=”4.21.0″ _module_preset=”default” image_icon_custom_margin=”||||false|false” custom_margin=”||||false|false” global_colors_info=”{}”]+1(403)-651-0012<\/a>[\/et_pb_blurb][et_pb_toggle title=”Tax-Free Savings Account (TFSA)” open=”on” open_toggle_text_color=”#14502D” closed_toggle_text_color=”#14502D” icon_color=”#F58420″ toggle_icon=”P||divi||400″ open_icon_color=”#F58420″ open_toggle_icon=”O||divi||400″ disabled_on=”on|on|on” _builder_version=”4.16″ _module_preset=”default” title_text_color=”#14502D” border_color_all=”#4C683F” disabled=”on” global_colors_info=”{}”]<\/p>\n

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Unlike the RRSP, there are no spousal TFSA contributions. Any TFSA contribution must come from the TFSA holder. Also, there is no creditor protection of a TFSA. If the taxpayer is going to be in a higher tax bracket in retirement than while working, then the TFSA should be the vehicle of choice. If the tax bracket is going to be the same, then, mathematically, the TFSA and RRSP will work out the same. You could face some tax on your TFSA income if you have invested in a foreign stock inside your TFSA. Foreign dividends-paying stocks will be subject to foreign non-resident withholding tax. Many people are still not using the TFSA. For lower-income earners, it can be more effective as a retirement savings vehicle than the RRSP, as it will not cause a loss of GIS income in retirement. For higher-income earners, it can provide a flexible supplement to the RRSP. There is no OAS clawback from TFSA.<\/p>\n

You can invest in stocks, bonds, mutual funds, segregated funds, and GICs through the TFSA account.<\/p>\n

Book A Meeting<\/a><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

[\/et_pb_toggle][et_pb_toggle title=”Registered Retirement Savings Plan (RRSP)” open_toggle_text_color=”#14502D” closed_toggle_text_color=”#14502D” icon_color=”#F58420″ toggle_icon=”P||divi||400″ open_icon_color=”#F58420″ open_toggle_icon=”O||divi||400″ disabled_on=”on|on|on” _builder_version=”4.16″ _module_preset=”default” title_text_color=”#14502D” border_color_all=”#4C683F” disabled=”on” global_colors_info=”{}”]<\/p>\n

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It\u2019s a registered retirement savings plan that can be used to enhance your income during retirement years and take advantage of tax deductions while working. To contribute to an RRSP, the contributor must have RRSP contribution room available. RRSP contribution room is based on the contributor\u2019s deduction limit, which is calculated each year based on earned income. It could be Net employment income, Unemployment benefits other than EI, Net rental income, Taxable support payments, Grants, Royalty income, and CPP disability benefit income. The contribution room is 18% of the total earned income. Unused RRSP room can be carried forward indefinitely. A taxpayer who has $10,000 in unused RRSP deduction limits from previous years and a new RRSP deduction limit of $16,000 for the current year would be able to contribute $26,000 in the following year and deduct that full amount from that year\u2019s taxable income. The over contribution allowance is $2000. The taxpayer does not simply contribute funds to their RRSP and be done with it. The RRSP is only a tax measure to encourage investing. The taxpayer will select an investment (or investments) which the financial institution in question will then register with CRA.<\/p>\n<\/div>\n<\/div>\n

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A great variety of investments are available within the RRSP.<\/p>\n

You can invest in stocks, ETFs, Bonds, Currency exchange, Annuities, GICs, Call\/put options, Mutual funds, segregated funds, investment-grade gold or silver; the taxpayer can contribute to his RRSP up until December 31st of the year that the taxpayer turns 71. After that, no further contributions to the taxpayer\u2019s own RRSP are permitted.<\/p>\n<\/div>\n<\/div>\n

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A taxpayer can also contribute to the spouse\u2019s (or Common-Law Partner\u2019s) RRSP. This is generally only appropriate in circumstances where one spouse earns a relatively high income and the other earns a relatively low income. This allows the taxpayer to use his own deduction limit and obtain the tax deduction, but to put funds in the spouse\u2019s RRSP. The attribution rules apply when the withdrawals from a spousal RRSP is done in a specific period. Withholding taxes apply to withdrawals. By naming just any beneficiary, the amount in the RRSP transfers directly to that person at death, and the annuitant\u2019s terminal tax return incurs the tax liability. Effectively, this reduces the assets available in the estate to pay out to the heirs. Any amount paid as a result of a beneficiary designation is likely to bypass probate. RRSP is a great tool to use the Home buyer\u2019s plan and Lifelong learning plan.<\/p>\n

Book A Meeting<\/a><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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[\/et_pb_toggle][et_pb_toggle title=”Individual Pension Plan (IPP)” open_toggle_text_color=”#14502D” closed_toggle_text_color=”#14502D” icon_color=”#F58420″ toggle_icon=”P||divi||400″ open_icon_color=”#F58420″ open_toggle_icon=”O||divi||400″ disabled_on=”on|on|on” _builder_version=”4.16″ _module_preset=”default” title_text_color=”#14502D” border_color_all=”#4C683F” disabled=”on” global_colors_info=”{}”]<\/p>\n

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For a business owner, it\u2019s a great tool to save funds for retirement. It\u2019s a form of defined benefit plan. As compared to RRSP the contribution room in an IPP is way higher so it allows you to save more and enhances your financial security in retirement. It’s very well suited for a business owner aged 40+ who has had $100,000 of earnings in T4. It helps to reduce the passive income in corporations. The cost of the plan is tax-deductible for the corporation. The plan provides credit protection benefits as well. The contribution room increases from 18% up to 65% when you save in IPP as compared to the RRSP.<\/span><\/p>\n

Book A Meeting<\/a><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

[\/et_pb_toggle][et_pb_toggle title=”Registered Education Savings Plan (RESP)” open_toggle_text_color=”#14502D” closed_toggle_text_color=”#14502D” icon_color=”#F58420″ toggle_icon=”P||divi||400″ open_icon_color=”#F58420″ open_toggle_icon=”O||divi||400″ disabled_on=”on|on|on” _builder_version=”4.16″ _module_preset=”default” title_text_color=”#14502D” border_color_all=”#4C683F” disabled=”on” global_colors_info=”{}”]<\/p>\n

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RESP<\/strong>\u00a0<\/span>is the most widely used education savings tool in Canada. The RESP is administered by Employment and Social Development Canada (ESDC). ESDC is represented by Service Canada, which has a robust physical and online presence and is a valuable source of information about most Federal government programs. CRA also has a hand in RESP administration, given that the program features some tax benefits, and that there is some connection between income and grants and bonds.<\/p>\n

The child is the beneficiary of RESP and must be a resident of Canada with a valid Social Insurance Number. There is no minimum or maximum age. The subscriber of the plan is typically a parent or grandparent. Curiously, it is also possible for the estate of the deceased to act as the subscriber of an already established RESP, even though a trust (which the estate is) cannot normally act as a plan subscriber.<\/p>\n