Mutual Funds

RRSPs

Registered Retirement Savings Plans (RRSPs) are retirement savings accounts given special tax advantages by the Government of Canada. Limited contributions can be deducted from income for tax purposes, and investment growth is not taxed until money is withdrawn from the Plan. We provides a wide range of professionally managed mutual funds and GIC for RRSP investing.

T-SWPs

T-SWP is a free cash-flow service that allows you to tap into your non-registered investments in a more tax-efficient way. It can serve as an alternative to a traditional systematic withdrawal plan (SWP), or a complement to other income strategies like GICs.

Most of the cash flow you receive through T-SWP is not taxed since it is treated as part of the money that you originally invested. This allows you to defer tax until you deplete your initial investment or decide to sell the investment.

Benefits of T-SWP:

- Enjoy sustainable cash flow than many guaranteed investments
- Defer tax
- Capitalize on tax-favoured dividends and capital gains
- Potentially reduce government clawbacks like Old Age Security
- Help preserve or even grow investments for the future
- Access your money when you need it (unlike most GICs or annuities)

For additonal information, please click here.

RRIFs - Registered Retirement Income Funds

A Registered Retirement Income Fund (RRIF) is a popular retirement income option because it's essentially a Registered Retirement Savings Plan (RRSP) in reverse. You set up a RRIF by transferring money from your RRSP, or by transferring funds from a pension plan that is not locked-in.

- Investments: Generally, you can hold the same investments in a RRIF as you can in an RRSP.
- Taxes: You don't pay taxes on the amount transferred to the RRIF, and the money in your RRIF account stays tax-sheltered until it's withdrawn as income.
- Required withdrawals: You are required to make minimum withdrawals every year - after all, it is a plan for drawing retirement income - but there is no maximum amount and the minimum annual withdrawal is based on your age.

RESPs - A Registered Education Savings Plan

A Registered Education Savings Plan is an ideal financial vehicle to help you save for your child or grandchild’s post secondary education. One of the main advantages of an RESP is that it allows you to accumulate investment income on a tax-sheltered basis. Also, to encourage parents to save for their children’s education, the federal government pays an additional 20% grant up to the first $2,500 in contributions in the year. There are also other grants available. Please read RESP section in the Resource section for full details.

Corporate Class Mutual Funds Structure

Corporate Class Mutual Funds Structure offers investors the flexibility to switch and rebalance non-registered investments without triggering immediate tax consequences. Deferring tax in this way can allow you to:
- rebalance a portfolio to your ideal mix of investments, or seek out new opportunities in more attractive areas of the market
- plan when you want to trigger your capital gains tax liability
- potentially reduce your future tax bill, if your tax rate decreases, or the government lowers tax
- enjoy compound growth on deferred tax, which could result in a higher account value

Example: The Fidelity Corporate Class Structure is a tax-advantaged investment solution, comprised of 38 individual offerings (including 15 US$ options), covering a broad range of regional, sector and asset categories. Each class invests in an existing mutual fund from Fidelity's leading family of fund offerings. However, unlike these traditional mutual funds, all classes are held within one corporation, which means that the resulting capital gains on switches can be deferred within the corporation. This allows investors to enjoy tax-deferred compound growth, and ultimately increase the potential value of their investment.

When investors eventually withdraw assets from the Capital Structure, they have two options:
1. withdraw assets from the structure and be subject to a capital gains tax.
2. switch assets to Fidelity T-SWP(tm) Class and receive tax-efficient monthly cash flow

It is important to note that, as with all mutual funds, you must still pay tax on capital gains distributions that arise from the sale of individual fund holdings by fund managers, and on interest and dividend distributions.