What to know before choosing a plan
Plain-language information, designed to help you compare meaningful differences.
Start with objectives rather than an investment product
A sound investment discussion begins with emergency savings, debt costs, time horizon, risk capacity, existing assets and the purpose of each account. Money for a home purchase in two years should not automatically be invested like retirement assets for 25 years.
We discuss registered accounts, diversified portfolios and insured investment products where suitable. Returns are not guaranteed; capital losses are possible.
RRSP, TFSA, FHSA and RESP roles
RRSP contributions may create tax deductions, while withdrawals generally become taxable income. TFSA contributions are not deductible, but eligible withdrawals are generally tax-free. FHSA can combine qualifying deductions with tax-free qualifying first-home withdrawals. RESP accounts support future education costs with possible government incentives.
Contribution room and eligibility are personal and can change; verify directly with CRA and the financial institution before transferring or contributing.
Segregated funds and contract features
Segregated funds are insurance contracts with investment exposure and specific guarantees that depend on the contract. They may offer beneficiary designation and certain estate-planning features, but typically have costs and constraints worth comparing against other investments.
Guarantees, creditor-protection considerations, fees and withdrawal consequences differ by product. Professional legal and tax advice may be appropriate.
Reviews, not predictions
Your plan should define a suitable asset mix, contribution schedule, investment expenses and how you will respond to market declines. Rebalancing and periodic reviews are more controllable than forecasting returns.
Investment and insurance solutions are subject to suitability assessment, licensing, availability and product terms.