Canadian Investment Account

Registered and Non-Registered Account Overview

Canadian registered and non-registered accounts provide convenient financial services, offering diverse investment and savings options. With registered accounts, easily manage personal finances, invest in stocks, funds, and other products, enjoying tax benefits and personalized financial solutions for a convenient, secure, and tailored experience.

Registered Account

Non Registered Account

Investment Targets

FAQ

Related Reading

TFSA Appointment

Looking for advice?
We can help.

Free Consulting

or call 647-323-3231 directly

Common Registered Accounts

TFSA 免税储蓄账户

Tax-Free Savings - TFSA

A Tax-Free Savings Account (TFSA) is a registered tax-advantaged savings account introduced by the Canadian government in 2009 to encourage eligible Canadians to save. Within a TFSA, the interest, capital gains, and dividends generated by the products are tax-free. You can contribute to the TFSA account at any time after opening it, earn interest or returns, all while being exempt from taxation. The Canadian government sets the annual contribution limit, and this limit can accumulate each year.

Read more
RRSP 加拿大退休储蓄账户

Retirement Savings - RRSP

A Registered Retirement Savings Plan (RRSP) is a Canadian registered account designed for saving and investing, primarily serving the purpose of deferring taxes. The money contributed to an RRSP can be deducted from the taxable income of the current year, and taxes are paid only when funds are withdrawn. RRSPs are suited for long-term investments, and careful selection of investment targets is essential to maximize benefits from compounding.

Linked Accounts: Registered Retirement Income Fund (RRIF), Locked-In Retirement Account (LIRA)

Read more
RESP 加拿大教育储蓄账户

Education Savings - RESP

A Registered Education Savings Plan (RESP) is a Canadian government-sponsored higher education savings plan. It is designed to provide beneficiaries with an account to save for the expenses associated with higher education. Once contributions are made to the account, the government provides subsidies. When the earnings are withdrawn, taxes are calculated as part of the child's income, often resulting in lower or no tax payments.

Read more
免税首次购房储蓄-FHSA

Home Buyer's Subsidy - FHSA

The First Home Buyer Saving Account (FHSA) is a newly implemented preferential account starting in 2023, designated for specific savings purposes. To open an account, both the individual and their spouse must not have any property in their name within the past five years. After opening the account, there is an annual contribution limit of $8,000, totaling $40,000, and a combined limit of $80,000 for spouses. If the funds from this account are used for the first home purchase, they will be entirely tax-free.

Non Registered Account

非注册账户 non-reg

Non-Registered Account

A NON-Registered account is an unregistered account, where the investments held inside are subject to taxation upon earning profits. However, non-registered accounts don't have contribution limits, allowing you to store funds without penalties and with no withdrawal restrictions.

Suitable Investment Products

Choosing investment products is closely tied to your account type and risk tolerance. Many investors diversify their investments across different asset classes to help maintain a balanced portfolio.

Please note that registered plans (such as RRSP and TFSA) are limited to holding investment products that qualify under the plan's investment criteria.

Segregated Funds

The value of Segregated Funds, a type of investment product, often fluctuates and there's no guaranteed investment return. However, when the Segregated Fund contract matures or in the event of your passing, if your account is in a loss position, the contract guarantees you'll receive 75% or 100% of your principal. You can purchase Segregated Funds using various accounts, including but not limited to TFSA, RRSP, RESP, Non-Reg, etc.Learn more about Seg-Fund

Mutual Funds

The value of Mutual Funds often fluctuates and there's no guarantee of investment returns, nor is the principal protected from loss.

Stock

Stocks represent ownership in a company and serve as ownership certificates issued by the company to shareholders as evidence of holding shares. They're issued by companies to raise funds from shareholders, entitling them to dividends and potential capital gains.

Bond

Bonds are debt securities issued by governments, financial institutions, businesses, and other entities to raise funds from the public. They are issued to investors and promise to pay interest at a specified rate and repay the principal under agreed-upon conditions.

ETF

ETF, Exchange-Traded Funds, are open-ended funds that can be freely bought and sold on a stock exchange by investors. They track various indexes and provide exposure to a wide range of assets.

Cash & GIC

Guaranteed Investment Certificates, are secure investments that promise a defined amount at the end of their term. The return based on the interest rate. While the returns are guaranteed, if inflation occurs in the economy, the returns may not keep pace with inflation and the value of the GIC may be reduced.

Consider working with an Advisor

The financial market is unpredictable, offering investors a multitude of plans and products to choose from. The influx of news online and the noise in the market can affect your assessment of investment trends and make managing your investments feel challenging.

Ai Financial's Investment Advisor team is ready to offer free assistance and expert advice. They analyze your goals, customize plans, and recommend suitable investments to help you achieve your objectives. Collaborating with a personal advisor streamlines the process and ensures you make informed decisions. Reach out for support.Click to choose your preferred investment advisor..

Most Common Questions

How is the TFSA contribution limit calculated?

If you have remaining TFSA contribution room for the current year, you can accumulate and carry it forward to the next year. Your TFSA contribution room increases annually, starting from the year you turn 18, even if you haven't filed a tax return, applied for benefits, or opened a TFSA in that particular year. If you turn 18 after 2009, your TFSA contribution room begins accumulating from the year you turn 18 and continues to accumulate each subsequent year.

Will TFSA affect other benefits?

A particularly advantageous aspect is that the capital appreciation and withdrawals from your TFSA account won't impact your eligibility for government benefits such as the Ontario Pension Plan, low-income subsidy benefits, federal tax credits, and more.

Lastly, and most importantly: Never exceed your contribution limit; otherwise, the tax authorities will impose a monthly penalty of 1% on the excess amount. For the specific limit of your TFSA, you can log in to your CRA account to check.

Is it necessary to buy RRSP with low income?

Yes, you can purchase RRSP. RRSP not only provides a tax refund but also has a significant tax deferral feature. The deferral feature means that if you buy RRSP while working, the contribution will not be counted as part of your income for that year, and thus, you won't need to pay taxes on the amount contributed.

Here's an example: Let's consider an individual with an annual income of $30,000. If they do not invest in an RRSP, they would owe the government $4,550 in taxes that year. However, if they contribute $2,000 to an RRSP, their taxable income for the year would be reduced to $28,000, resulting in a tax payment of $4,100. This would lead to a tax refund of $450. When this $2,000 contribution is withdrawn after retirement when they have no employment income, it would be subject to very little or no taxation. This is because each individual has a tax-free income threshold every year; for this year, it's over $10,000. Therefore, the $2,000 contribution might not be subject to taxes at all, and even if it is, it would likely be much lower than the tax rates applied to their current salary. This exemplifies the tax deduction and tax deferral benefits of RRSPs. (View the original case study)

Can RRSP be withdrawn before retirement? When is the best time to buy?

After you've contributed to your RRSP, the funds can be withdrawn at any time. However, if you withdraw from your RRSP account before retirement, the withdrawn amount will be treated as income for that year. Additionally, you'll need to pay a withholding tax, which varies based on the province and the amount withdrawn. On the other hand, if you withdraw after retirement, you won't have to pay the same withholding tax.

RRSP can be purchased at any time during the year. Purchasing RRSP outside the "RRSP Season" allows you to deduct the contribution from your current year's income, reducing the income tax you need to pay. On the other hand, buying RRSP before March 1st of the following year allows you to claim it as a deduction against your previous year's income, reducing the taxes owed for the previous year. Therefore, the period from the beginning of the year to this deadline is known as the "RRSP Season."

How to withdraw from an RESP? What are the requirements?

After you've contributed to your RRSP, the funds can be withdrawn at any time. However, if you withdraw from your RRSP account before retirement, the withdrawn amount will be treated as income for that year. Additionally, you'll need to pay a withholding tax, which varies based on the province and the amount withdrawn. On the other hand, if you withdraw after retirement, you won't have to pay the same withholding tax.

How much should I contribute to RESP to maximize the CESG grant? Can I transfer it to someone else?

The minimum monthly contribution is $208.33, or $2,500 annually. Any excess contributions won't receive government grants. Making contributions for 14 to 15 consecutive years allows for full CESG grant eligibility.

Yes, the beneficiary can transfer an amount equal to the current year's maximum of $500 and the previous year's $500, making the maximum annual transferable amount $1,000.

What is RRIF?

A Registered Retirement Income Fund (RRIF), automatically converts from an RRSP once you exceed 71 years old. Each year, you are required to withdraw a minimum amount, as per government regulations, and the withdrawn amount is considered part of your taxable income for that year, requiring normal tax reporting and payment. Funds within the RRIF account, like in an RRSP, are used for investments, and with proper management, they can provide long-term income, serving as a financial safeguard for retirement.

What is LIRA?

A Locked-In Retirement Account (LIRA), like most similar retirement accounts, is designed for saving funds for retirement. This account cannot be accessed by the account holder until certain conditions are met, typically upon reaching a specific age (or according to agreed-upon terms). It must be transferred to another retirement plan, such as an RRIF, before reaching the age of 71.

Explore Ai Financial and products and services

Investment Basics >

Canadian Investment Guide: Includes but is not limited to account introductions, basic investment concepts, investment tips, and more.

Explanation of Investment Loans >

Leveraging for Maximum Returns and Tax Minimization

Fund Products >

With segregated funds, AiF's professional investment capabilities deliver double-digit annual returns.

Personalized Financial Consultation >

Tailored strategies based on individual investment goals for stable profitability.

Recent Activities >

Regularly organizing offline and online events aimed at enhancing financial literacy among Canadians.

Investment Insights >

Market Tracking, News Analysis, Professional Insights

探索Ai Financial
及相关产品和服务

Investment Basics >

Canadian Investment Guide: Includes but is not limited to account introductions, basic investment concepts, investment tips, and more.

Explanation of Investment Loans >

Leveraging for Maximum Returns and Tax Minimization

Fund Products >

With segregated funds, AiF's professional investment capabilities deliver double-digit annual returns.

Personalized Financial Consultation >

Tailored strategies based on individual investment goals for stable profitability.

Recent Activities >

Regularly organizing offline and online events aimed at enhancing financial literacy among Canadians.

Investment Insights >

Market Tracking, News Analysis, Professional Insights

Start Investing Today

Explore our registered plans and investment products.
Investing doesn't have to be complicated. From growing your funds to future planning, we offer a range of investment choices for you. (Phone, ZOOM, In-person).

You can call+1 647-323-3231for more information.