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Investments

 

Mutual Fundsis a professionally managed pool of investments such as stocks, bonds and other securities held in trust on behalf of individual investors. Each individual investor owns units, which represent a portion of the holdings of the fund. Such a fund is managed by a third party, who upon request must repurchase the units at their net asset value.

 

Segregated Funds – is a type of investment fund that is similar to a mutual fund, but is considered an insurance product and is administered by insurance companies. Segregated fund is similar to mutual fund in many respects. It combines the growth potential of a mutual fund with the security of a life insurance policy. Although there may be a guarantee to the investor of a segregated fund, there will also likely be penalties if the investor sells shares of the fund before their maturity.

 

Group RSP  - An employer-sponsored RRSP under which each participating employee has an account. Both the employer and the employee can contribute to the plan up to a certain maximum. The employer's contributions are considered taxable income for the employee who may, however, obtain an RRSP tax deduction for the amount involved. For the employer, the contributions are tax-deductible as payroll expenditures.

 

Profit Sharing (DPSP) - A profit-sharing plan whereby an employer makes contributions based on the organization's annual profits to a trust for the benefit of employees.

Guaranteed Investment Certificates - A certificate issued by most financial institutions requiring a small investment be made for a given period of time at a fixed interest rate. This type of certificate is generally not reimbursable before the maturity date.

 

Defined Contribution Pension Plan - A pension plan that describes the plan sponsor's annual contribution to the plan on behalf of each plan participant.  At retirement, the amount of a participant's benefit is calculated based on the accumulated value of contributions made by, or on behalf of, the participant.

 

Pension Plan - A plan under which members are paid retirement benefits under certain terms starting at a given age. Such plans are usually financed with contributions paid either by the employer alone or by both the employer and the member.

 

RESPs - A plan registered under the Income Tax Act allowing the participant to accumulate tax-sheltered amounts that are held in trust to be used to cover eligible postsecondary education costs for a beneficiary.

 

RRSPs - A means by which individuals may defer taxes due on savings invested for their retirement. The funds are invested in a variety of investment instruments held in trust under the plan. Taxes due on the contributions made and return on investment are deferred until the funds are withdrawn upon retirement.

 

TFSAs - An account that does not charge taxes on any contributions, interest earned, dividends or capital gains, and can be withdrawn tax free. The contributions are not tax deductible and any unused room can be carried forward. This savings account is available to individuals aged 18 and older and can be used for any purpose.

 

RRIFs - A tax-deferral mechanism available to holders of a Registered Retirement Savings Plan (RRSP). Holders invest the amount withdrawn from their RSSP in this fund, from which they withdraw a certain fraction annually. The amount taken out becomes taxable.

 
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Mutual Funds and Segregated Funds provided by the Fund Companies are offered through Worldsource Financial Management Inc.
Other Products and Services are offered through Brad Webb Financial.

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