What’s the best way to invest your money? It starts with understanding your options and investment strategies. Compare TFSAs, RRSPs and RESPs, find out what your limits are, and explore the advantages of segregated funds and annuities. Many of our Financial Advisors are also licensed to sell mutual funds. With the right balance of investments, you can achieve your goals for today, tomorrow and beyond.
Investment products are offered by Co-operators Life Insurance Company.
Only offered by life insurance companies, segregated funds come with a guarantee of up to 100% of your principal at policy maturity and death, making them more secure than mutual funds or stocks.
The amount guaranteed depends on the guarantee level you choose. We know that life changes fast, so once you’ve selected a guarantee level, you still have the option to transfer between guarantee levels up to three times over your lifetime.
With segregated funds, you get:
Find out how much you need to save to achieve your retirement goals
Versatile Portfolios™ Navigator is an investment product, which may include features or options such as segregated funds, portfolios of segregated funds, or guaranteed rates. Guaranteed benefits are payable upon death, or maturity of funds. No guarantee is provided upon surrender or partial withdrawal of segregated fund units.
An RRSP is an easy way to save for retirement. Regulated by the federal government, it features two major benefits:
Pay less income tax
Your RRSP contributions are deductible from your taxable income. That means either a bigger tax refund or a smaller tax bill. You will pay tax when you withdraw the money from your RRSP at retirement, but it will likely be at a lower rate because of your lower income.
Tax-deferred growth
With an RRSP, your savings and interest enjoy tax-sheltered growth. You can gain a lot of financial momentum by contributing to your retirement plan early.
An RESP lets you to save for your child's or grandchild’s education tax-free, with contributions from the government. There are two types: A family plan for your children under age 21, with contributions allowable until the age 31, and an individual plan for anyone of any age.
Here are the two main benefits of an RESP:
Access to government grants
The federal government will match up to 20% of your contributions, until your child turns 17. Your contributions may also qualify for the Canada Education Savings Grant (CESG). Through the CESG, the government will match an extra 20% of your contribution to a maximum of $500 per child per year.
Tax-deferred investment growth
Contributions made to an RESP accumulate and grow tax-free over the life of the plan. When you withdraw money to pay education-related expenses, only the additional earnings and grant portions of the plan are taxable.
You can save up to $5,500 per year tax-free with a TFSA. Investment returns earned in a TFSA – including capital gains and dividends – are not taxed, even when withdrawn. Any Canadian aged 18 or over, who’s reached the age of majority in their province, can open a TFSA.
From 2009 to 2012, the contribution limit was $5,000. In 2013, the limit was raised to $5,500 and in 2015 it increased again to $10,000. However, in 2016 the limit decreased to $5,500, where it currently stands.
Based on the 2016 contribution limit, going forward $5,500 will be added to your contribution room each year and any unused contribution room can be carried forward. For example, anyone who was 18 or older in 2009, and has not yet contributed, has $52,000 of room in 2017.
The Canada Revenue Agency will advise you each year of your current TFSA contribution room.
Find out how much you need to contribute to achieve your goals.
Depending on your province, you can choose one of a few fund options to regularly receive income from your Registered Retirement Savings Plan, Registered Pension Plan, or another locked-in or unlocked plan.
RRIF
Registered Retirement Income Funds (RRIFs) are a continuation of your RRSPs. The only difference is that you must withdraw a minimum legislated amount of money each year. The latest possible date to convert an RRSP to a RRIF is December 31st of the year you turn 71.
LIF
A Life Income Fund (LIF) is similar to a RRIF, except it’s specifically designed for locked-in pension funds. LIFs are only available in certain provinces for those with Locked-In RRSPs, Locked-in Retirement Accounts (LIRAs), Registered Pension Plans (RPPs) and Locked-in Retirement Income Funds (LRIFs).
Find out how much you need to save to achieve your retirement goals
The Co-operators® used by Co-operators Life Insurance Company under license from
The Co-operators Group Limited.
Most savings plans can be used to purchase an annuity, providing you with a monthly income for the rest of your life, or a set term of your choice. They can also be combined with other income plans such as RRIFs, LIFs and Systematic Withdrawal Plans (SWP), as part of a broader financial plan. At a minimum of age 50 and a maximum of 90, there are several types available, but in most cases your income payment amount is based on:
Freeing you from the stress of difficult investment decisions, annuities are convenient as they provide a guaranteed income for the rest of your life.
Talk to a Financial Advisor
Discover your financial balance by emailing your Co-operators Financial Advisor or enter your postal code to find one locally.
