Registered Retirement Savings Plan (RRSP)
An RRSP is a retirement savings plan that you establish, that is registered with the Canada Revenue Agency, and to which you or your spouse or common-law partner contribute. Deductible RRSP contributions can be used to reduce your tax.
Any income you earn in the RRSP is usually exempt from tax as long as the funds remain in the plan; you generally have to pay tax when you receive payments from the plan.
To learn all the facts, please contact us.
Registered Retirement Income Fund (RRIF)
A RRIF is a fund you establish with a carrier and that is registered with the Canada Revenue Agency. You transfer property to the carrier from an RRSP, RPP, or from another RRIF, and the carrier makes payments to you. Establishing a RRIF can be done at anytime, but must be done no later than the year the annuitant turns 71. Once a RRIF is established, there can be no more contributions made to the plan nor can the plan be terminated except through death.
You can have more than one RRIF and you can have self-directed RRIFs. The rules that apply to self-directed RRIFs are generally the same as those for RRSPs.
For more information, please contact us.
Source: Canada Revenue Agency
Tax-Free Savings Account (TFSA)
The Tax-Free Savings Account (TFSA) allows Canadians, age 18 and over, to set money aside tax-free throughout their lifetime. Each calendar year, you can contribute up to the TFSA dollar limit for the year, plus any unused TFSA contribution room from the previous year, and the amount you withdrew the year before.
The annual TFSA dollar limit for 2017 is $5,500.*
All income earned and withdrawals from a TFSA are generally tax-free. Plus, having a TFSA does not impact federal benefits and credits. It's a great way to save for short and long-term goals.
To learn all the facts, please contact me.
* For more information, please visit Canada Revenue Agency's TFSA website.
Registered Education Savings Plans (RESPs)
A registered education savings plan (RESP) is a contract between an individual (the subscriber) and a person or organization (the promoter).
Under the contract, the subscriber names one or more beneficiaries (the future student(s)) and agrees to make contributions for them, and the promoter agrees to pay educational assistance payments (EAPs) to the beneficiaries.
There are two different types of RESP available: family plans and specified plans.
For more information, please contact me.
Source: Canada Revenue Agency
The Manulife Investments Guaranteed Interest Contract (GIC)
Security for your portfolio. Peace of mind for you.
GICs can provide you with the key benefits you're looking for:
- A solid foundation for your investment portfolio – reducing overall portfolio risk and providing you with more consistent returns
- A positive rate of return – guaranteeing that at least part of your portfolio is continually growing
- Peace of mind – you'll rest easy knowing that your principal is safe and secure
A Manulife Investments GIC provides certain benefits that may not be available through mutual fund organizations, banks, or trust companies, plus a broad range of investment choices:
- The Basic Account
- The Laddered Account
- The Escalating Rate Account
- The Market Growth Account
- The Daily Interest Account
For more information, please contact us.
*The Manufacturers Life Insurance Company is the issuer of the Manulife Investments GIC.
About the Basic GIC Account
A cashable GIC investment that offers you the security of a guaranteed interest rate -- but also the flexibility to cash in if the need arises.
Key Features
- Available half-year rate bonus - add six months to a standard length term and get the next year's rate (i.e. a two-and-a-half-year term would receive the standard three-year rate).
- Interest can compound to maturity or, for a non-registered GIC account, be credited monthly, quarterly, semi-annually or annually to the Daily Interest Account.
- Maturity date - Choose any maturity date you desire.
- Cashable in whole or in part, at any time*.
- Terms from one to 10 years (up to 30 years for registered retirement income GICs).
How You Benefit
- You can plan your maturity dates to line up with future investment plans, expenditures or lifestyle changes.
- You can earn a higher interest rate by simply adding six months to a standard length term.
- Your funds are available to you at any time -- when you need them*.
For more information, please contact us.
*Surrender charges may apply if withdrawals are made prior to the maturity date. Withdrawals may be subject to legislative or contract restrictions. Additional information is available from your advisor.
The Laddered GIC Account
The Laddered GIC Account is a GIC investment that will automatically diversify your portfolio by ensuring that a portion matures each year and is reinvested at attractive long-term rates.
Key Features
- Your investment is evenly divided into multiple term lengths, all receiving the same initial competitive interest rate (i.e. into one-, two-, three-, four- and five-year terms).
- Laddered terms of one to five years or one to ten years.
- A portion of your investment matures each year and can either be automatically reinvested into five- or 10-year terms or withdrawn.
- Interest can compound to maturity or, for a non-registered GIC account, be credited monthly, quarterly, semi-annually or annually to the Daily Interest Account.
- Cashable in whole or in part, at any time*.
How You Benefit
- You have greater protection against fluctuating interest rates in the future.
- One attractive initial interest rate for all your investment terms.
- Your GIC investments can renew automatically into attractive long-term rates, with minimal involvement by you.
- Your funds are available to you at any time -- when you need them*.
For more information, please contact us.
*Surrender charges may apply if withdrawals are made prior to the maturity date. Withdrawals may be subject to legislative or contract restrictions. Additional information is available from your advisor.
About the Escalating Rate GIC Account
A GIC investment that provides you with increasing interest rates each year.
Key Features
- Guaranteed increasing rates for each year of the term.
- Very attractive interest rates for the final years of the term.
- Interest will compound to maturity.
- Cashable in whole or in part, at any time*.
- Terms of three or five years.
How You Benefit
- Regardless of whether interest rates rise or fall, the rate on your Escalating GIC investment is guaranteed to increase during each year of the term.
- You can lock-in now to guarantee higher interest rates in later years.
- Your funds are available to you at any time -- when you need them*.
For more information, please contact us.
*Surrender charges may apply if withdrawals are made prior to the maturity date. Withdrawals may be subject to legislative or contract restrictions. Additional information is available from your advisor.
About the Market Growth GIC Account
A GIC investment that enables you to participate in the growth potential of market-based investments while guaranteeing your principal.
Key Features
- Links your returns to market-based investments selected by Manulife Investments.
- Investment growth during the term is credited on the maturity date*.
- Your principal investment is 100% guaranteed at the maturity date.
- Non-cashable during the term.
- Offered by Manulife Investments during limited time periods.
How You Benefit
- You can participate in the growth potential of market-based investments -- and your principal is 100% guaranteed.
- Enables you to diversify your GIC portfolio and to benefit from a unique investment type, while guaranteeing your principal.
For more information, please contact us.
*Interest is based on the performance of a market-based investment and is credited on the maturity date. At any date prior to the maturity date, the interest is zero and the value of the investment is the principal amount.
About the Daily Interest GIC Account
A GIC account that provides easy access to your money, without fees.
Key Features
- A short-term holding account.
- Money is available any time without fees.
- Interest is compounded daily and credited monthly.
How You Benefit
- A convenient place to "park" your money while you take time to make longer-term investment decisions.
- Gives you access to your money any time, without fees, to meet your short-term liquidity needs.
- Also useful if you want to consolidate your funds for future investment purchases.
For information on the Daily Interest GIC Account, please contact us.
What is an Annuity?
An annuity is a plan that makes payments to you on a regular basis. It might be a general annuity, a payment from a registered retirement income fund (RRIF), or a variable pension payment. These payments are part of your total income and are reported on your tax return.
To learn all the facts, please contact me.
Source: Canada Revenue Agency
Manulife Private Investment Pools
MPIP Segregated Pools
The Manulife Private Investment Pools (MPIP) program is an exclusive wealth management initiative with the comprehensive resources needed to fulfill your distinct preferences and priorities. It’s where you’ll find the vision, innovation, value, expertise, service and integrity that you expect and require to answer your sophisticated investment objectives and goals.
To learn more, please click here or contact us.
*The MPIP Segregated Pools insurance contract is offered by The Manufacturers Life Insurance Company.