Embedded Files
Choosing where you invest can be as important as choosing what you own.
Matthew Lawrence, QAFP®, Financial Advisor, helps you understand and coordinate investment accounts around your goals, time horizon, access needs and financial circumstances.
INVESTMENT ACCOUNT GUIDANCE IN NIAGARA. PROUDLY CANADIAN.
INVESTMENT ACCOUNT GUIDANCE IN NIAGARA. PROUDLY CANADIAN.
Choosing an investment is only half the decision.
Choosing an investment is only half the decision.
An RRSP, TFSA, FHSA, RESP, RDSP or non-registered account is not an investment itself. It is the structure that holds your investments.
That structure can affect contributions, withdrawals, taxation and access to government incentives.
When accounts are opened at different times or for different reasons, savings can become scattered across structures that no longer have a clear purpose.
Match the account to the goal.
Match the account to the goal.
The right place to begin is not with an account acronym. It is with what the money is intended to accomplish.
When will it be needed? How important is flexibility? Is the goal retirement, a first home, education, disability-related support or general wealth building?
The account provides the framework. The investments inside it provide the strategy.
Several account types may be useful at the same time - but each should have a reason for being there.
Understand the rules before making the move.
Understand the rules before making the move.
Matthew explains how different account types work, what limitations may apply and how each account could fit within your investment strategy.
His QAFP® background provides a broader perspective on how account decisions may interact with retirement, income needs, government benefits and tax considerations.
Where specialized tax or legal advice is required, decisions can be coordinated with the appropriate professional.
Which investment accounts?
Which investment accounts?
Tax-Free Savings Account (TFSA)
Tax-Free Savings Account (TFSA)
A flexible account in which investment growth and withdrawals are generally tax-free.
Registered Retirement Savings Plan (RRSP)
Registered Retirement Savings Plan (RRSP)
A retirement account offering tax-deferred investment growth and contributions that may be deductible.
First Home Savings Account (FHSA)
First Home Savings Account (FHSA)
An account designed to help eligible first-time homebuyers save toward a qualifying home purchase.
RESP and RDSP
RESP and RDSP
Registered accounts designed for education or disability-related savings, with government incentives potentially available to eligible beneficiaries.
Retirement Income and Locked-In Accounts
Retirement Income and Locked-In Accounts
RRIFs, LIRAs and LIFs hold or distribute retirement assets under specific withdrawal rules.
Non-Registered Investment Accounts
Non-Registered Investment Accounts
Flexible investment accounts without registered contribution limits, although income and gains may be taxable.
Business owners may also need to consider how funds held inside a corporation should be invested and coordinated with business needs.
Frequently Asked Questions
Frequently Asked Questions
What is the difference between an investment account and an investment?
What is the difference between an investment account and an investment?
The account establishes the legal and tax structure. The investment, such as a mutual fund or other security, is what you hold inside that account.
Which investment account should I contribute to first?
Which investment account should I contribute to first?
It depends on your goal, income, available contribution room, need for flexibility and expected timing. There is no single order that is appropriate for everyone.
Can I have more than one TFSA or RRSP?
Can I have more than one TFSA or RRSP?
Yes, but your contribution limit applies across all accounts of the same type. Opening another account does not create additional contribution room.
Do investments have to be sold when an account is transferred?
Do investments have to be sold when an account is transferred?
Not always. Some investments can be transferred directly or in kind when both institutions can hold them. Available options, costs and tax consequences should be reviewed before initiating a transfer.
Start with the goal - not the acronym.
Start with the goal - not the acronym.
You do not need to decide whether an RRSP, TFSA or another account is right before beginning.
Complete the short form and tell Matthew what you are saving or investing for. He will follow up personally to discuss your existing accounts and the next step.
Page updated
Report abuse