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Investment Plans to Suit Your Lifestyle

Properly investing your money is essential to your financial well-being. New World Agency will take the time to learn your short-term and long-term financial goals, and from there we will help craft an investment plan that puts these goals within reach.

We will work to maximize your investments and adapt as your career and stage of life changes over time.

Investment Options

New World Agency offers several investment options that can be used to tailor your finances to your specific goals. If you have any questions regarding our investment solutions, don’t hesitate to contact us.

There are four main investment account options in Canada.

Tax-Free Savings Account (TFSA)

Registered Retirement Savings Plan (RRSP)

Registered Education Savings Plan (RESP)

Non-Registered Accounts.

  TFSA RRSP RESP Non-Registered
Contribution Limits Per Year $6,000 along with any contribution room that was left unused from the previous year (up to a max of $75,500 as of 2021). Either: The lesser of 18% of earned income OR $27, 830 (as of 2021). There is no limit per year with this type of account.
Age Requirement 18 and up Anyone up to the age of 71 (w/ earned income) Anyone up to the age of 71
Tax-Deductible Contributions
Taxable Withdrawals EAP (Educational Assistance Payments) aren’t taxed until withdrawn (will be classified as taxable income). Many students may not need to pay tax depending on their situation (if they have little to no income from another source). In this instance, the money can be withdrawn tax-free.  on capital gains only.
Government Grant Availability Yes. This will be the CESG. CESG is only for those 17 and under). Depending on the province you’re in, other educational assistance programs are available as well.
Can you claim Capital Losses?
Tax Payable on Growth (Within your account)
Can you Re-Deposit Withdrawals? (The following year)

Still unsure of which one is best for you? Read more about these accounts below.

Tax-Free Savings Account (TFSA)

The TFSA is one of the best investment account options available to Canadians. It’s flexible and ideal for both short and long-term savings, even for when you are saving for retirement. Explore the details below.

Allows you to save for a wide variety of purposes (E.g. a new home, retirement, etc.)

Works for anyone 18 years of age and over (Or 19, depending on the province you reside in)

Set contribution limit per year

Contributions can include bonds, stocks, cash, segregated funds, and more

All contributions will grow over time, tax-free

Savings can be withdrawn at any time, regardless of the reason, tax-free

Your annual income is not reduced via this account

You can re-contribute anything that has been withdrawn, as long as it is re-contributed in another year to not go over your contribution limit

Registered Retirement Savings Plan (RRSP)

Prepping for retirement? An RRSP is a great way to set up savings for your post-career lifestyle. Investing money in an RRSP ensures that once you retire you can live comfortably knowing you have money set aside. Explore the details below.

Contributions are tax deductible

Can contribute to this type of account until you are 71 years of age

An RRSP can accept contributions from mutual funds, GIC’s, and more (TFSA and RRSP can have the same exact investments inside of them)

There is a set annual contribution limit

If over-contribution happens, you will be penalty taxed

Withdrawals are allowed before you retire, however, these are often taxed higher (you must note withdrawals as income on your tax return)

Registered Education Savings Plan (RESP)

If you’re a parent, grandparent, or guardian interested in saving for the education of your beneficiary – this is a great investment option for you. Explore the details below.

Ideal for saving for your beneficiary’s post-secondary education (This may include your child, grandchild, or even your niece/nephew)

The beneficiary will have to be a Canadian Resident along with having a SIN (Social Insurance Number)

The federal government will contribute up to 20% of what you invest into your RESP

Tax-deferred growth of your investments

There is no annual limit for contributions; Please note that there is an overall limit (lifetime limit) for each beneficiary of $50,000

Non-Registered Accounts (NRA)

Non-Registered investment accounts are not registered with the federal government, as opposed the other options mentioned above, which are registered. Explore the details below.

Can be used for short- or long-term investing

If used to their advantage, can have tax benefits

No limit on how much you can contribute

Capital gains from investments are taxable at 50% of your marginal tax rate.

Interest income is fully taxable at your tax rate

Did you pick the perfect account? Great! Now it is time to decide how you want to invest!

We offer two options for investments:

Segregated Funds

Mutual Funds

What are the similarities, and what are the differences? Let’s break it down.

  Segregated Funds Mutual Funds
Actively Managed by Professional Money Managers
Ability to Access Your Money Easily
Ability to Diversify Your Investments
Creditor Protection
Ability to Bypass Probate
Principal Guarantee at Maturity
Principal Guarantee at Death
Utilize Resets to Lock in Capital Gains

Let us go one step further to show you more about these two options

Segregated Funds and Mutual Funds do have a handful of similarities. Including:

Each are professionally managed by qualified individuals in the investment field.

Pooled investments (poll contributions from investors)

They can each be used in any of the following: RRSP, RESP, TFSA, RRIF, RDSP, or a non-registered account.

In most instances, you can retrieve your funds at market value.

They differ in several different areas, including:

Contract guarantee

Fees

Creditor protection 

Segregated Funds

  • These are offered via life insurance companies and are also known as Individual Variable Contracts (IVIC).
  • Maturity & death benefit guarantees. The investment you make initially has guaranteed benefit at maturity or death (choose between 75% or 100% so that you get as much back as possible even if there are fluctuations in the market).
  • You have the ability to lock in and secure your market gains. This means that there may be a new guaranteed total upon maturity or death if your investment grows.
  • Potential for protection from creditors.
  • Ability to bypass probate. Your beneficiary can receive the money quickly in the event of your death.
  • Death benefit reset. This helps to protect the growth of your investment when there is a premature death occurrence.

Mutual Funds

  • Offered via investment companies/investment firms.
    • When you pass away, this type of fund can be subject to probate fees and other fees.
    • Typically have lower fees than segregated funds do.
    • Many types of mutual funds, so your specific needs can be met. There are many more types of mutual funds than segregated funds.

Our experts will advise you on the best investment strategy for your current financial standing using a combination of the above investment options.

Take your investments to the next level with a variety of funds managed by some of the world’s top asset managers and firms! Head over to our Fund Managers page, here.

Ready to start making the most of your investments?