My Financial Elements CA

Investment & Retirement

Investing and Saving

Welcome to the one place with everything you need to know about increasing wealth and securing your savings.

Preserve and grow your wealth for a better life

Let us help you find ways to save, achieve your goals and make sure the money you’ve worked hard for is now working for you.

Discover your investment options

Investing can be simple. We’ll explain how it works so you can make smart choices.

Create your plan, with our help

Our financial advisors can become your personal long-term planning partners and counselors.

Bring your goals nearer

Over time, your investments and savings can help secure the future you want for you and your family.

Investments: Start growing your wealth

Investing is a smart way to build your wealth. We can help you find your way around the world of investments and make sure your choices are well informed.

Increase your assets with segregated funds

Invest with a safety net. Segregated funds are our most popular investment choice.

Make investing easy

Managed solutions can help you be more confident in your investments, letting you focus on your financial goals and not on shifting markets.

Turn investments into steady retirement

We can help you comfortably transition into your retirement years with options for turning investments into steady retirement income.

Diversify your investments with mutual funds

The flexible way to spread your eggs amongst several baskets. Mutual funds are how many investors achieve their financial goals.

1.RRSP (Registered Retirement Savings Plan)

The foundation of your retirement

An RRSP provides short and long-term tax advantages that can help fund the retirement you want.

Pay less tax now

Contributing to an RRSP lowers your taxable income so you pay less income tax while saving for your retirement

Keep more of your investments

You don’t pay tax on the growth of your investments in your RRSP until you withdraw it so you can keep more of your money

Help buy a first home or go to school

Use money from your RRSP to help buy your first home or fund you or your spouse’s education.

What is an RRSP?

It’s an investing and retirement savings account registered with the Canada Revenue Agency (CRA) that provides Canadians benefits to save for retirement. The money you put towards an RRSP isn’t taxed as a part of your income, so you pay less income tax.

It’s different from a typical savings account as it’s a place to put your investments where any growth isn’t taxed until you take your money out. Usually you’ll be retired by the time you withdraw your money, so you’ll generally pay less tax than in your higher earning years and get to keep more of your money for retirement.

How does it work?

· Talk to an advisor to open an RRSP with the right investments depending on your retirement goals and your risk tolerance.

· Figure out the contributions that fit your situation, making sure you don’t go over your contribution room.

· Your annual contributions can be deducted from your taxable income, thereby reducing your overall tax bill.

· Any investment growth grows tax free.

· You can access money when you need it, but withdrawals are taxable.

· Alternatively, you can withdraw tax-free to buy your first home or for you or your spouse’s education, if you qualify.

· When you’re ready to retire or you turn 71, your RRSP converts to a RRIF where you must withdraw your minimum annual amount. Alternatively, you can purchase an income annuity.

What are the tax advantages?

An RRSP provides tax advantages up front and in the future.

Up front advantages

It’s almost like paying yourself twice – at the same time as you’re saving, you’ll also reduce the income you’ll pay tax on. Let’s say you earn an $80,000 salary per year and you decide to contribute your allowed maximum into your RRSP—$14,400. When it’s time to pay your taxes, the CRA will only tax you on $65,600 of income.

Future advantages

Any growth on the investments in your RRSP is sheltered from tax until you make a withdrawal, which is usually in retirement when you’re in a lower tax bracket.

What are the RRSP contribution rules?

There are 2 general RRSP contribution rules:

1. You can contribute until Dec. 31 of the year you turn 71 years old

2. You can contribute what you have available in your contribution room provided by the CRA

2.Income Annuities

Your retirement paycheque

Annuities can help you step into retirement with the certainty of a steady income stream.

Guaranteed income

Create your own paycheque for retirement and shield it from market changes.

Customizable options

Don’t settle for one-size-fits-all solutions, choose the options tailored to your life.


An income stream that can help make sure you don’t outlive your money.

What is an annuity?

An income annuity is a simple way to turn a portion of your savings into regular income – for a fixed period or the rest of your life. It’s up to you.

No matter how the markets fluctuate or how much interest rates change, you’ll continue to receive payments that can help cover your essential expenses or support your retirement lifestyle.

You can put a portion of your retirement savings, like RRSP, into an annuity. It can cover your basic needs so the rest of your money can be used to live the retirement you want – taking that dream vacation, for example.

How does it work?

· Work with an advisor, your retirement planning partner, to determine when you want to retire and how much regular income you’ll need.

· Make a lump-sum payment.

· Choose to receive income payments for life or a set period of time.

· Choose to receive income for one person or a couple.

· Choose to receive monthly, quarterly, semi-annual or annual payments.

· Customize your annuity with different options that fit your needs.

· Start receiving a retirement paycheque.

How is your income guaranteed?

Similar to a pension plan, an annuity can be thought of as pooling money from thousands of Canadians.

· The insurance company invests the money conservatively.

· The company’s expertise allows it to estimate how many people in this group are likely to live beyond the average life expectancy and how many may not.

· It’s this variability in life span, combined with conservative investments, that allows the insurance company to guarantee your income for life.

Are income annuities a fit for you?

Income annuities can be the right choice if you are:

· Near or in retirement

· Looking for a secure financial paycheque for as long as you live

· Worried about outliving the money you’ve saved

· Interested in receiving steady income regardless of how the financial markets perform

· Seeking a steady income stream to cover basic expenses

· In need of income until your Canada/Quebec Pension Plan (CPP)/(QPP) and Old Age Security (OAS) and employer pension begins

· Willing to convert your savings into a guaranteed income stream

What types of annuities are there?

Lifetime income for you from a single-life annuity

· Similar to a pension plan for one person

· Provides income payments for life

Lifetime income for a couple from a joint annuity

· Similar to a pension plan for a couple

· Pays a regular income for as long as you or your partner lives

· When one spouse dies, the survivor continues to receive income payments

Regular income for a specific period from term annuity

· Pays a regular income to you

· Provides income payments for a certain number of years, indicated by you

Popular additional options

· Take care of your loved ones

You can add a guaranteed income payment option (guaranteed period). This way, income payments will be made from your annuity to your beneficiary for a specific period (e.g. 5 years), even if you or you and your spouse/partner die.


· Arrange to secure your initial investment

After your death, the person you choose as your beneficiary can receive a death benefit equal to your initial investment or continue receiving income payments, it’s up to you. If you already started receiving income while you were alive, the death benefit will be reduced by that amount.


· Start receiving income when you choose

With the flexible income start date option, you can change the date your income payments begin. Starting your income later than your original date will increase the amount of those payments to you.


· Access your money in cash

If you have an unexpected expense and suddenly need cash, the cashable feature lets you access some or all of your guaranteed income payments. This feature is only available with a non-registered, accrual taxation annuity. Some terms and conditions may apply.

3.Retirement Planing

Planning for Retirement

Retirement is a whole new stage in your life, and it should be on your terms. We can help you prepare and plan out every part.

Let’s secure the future you worked for

Whether you’re only thinking about it or are already retired, good retirement planning is what it takes to succeed. Together with our advisors, you can create a strategy and set the stage to enjoy your golden years. We’ll tailor our solutions to fit your lifestyle, habits and aspirations.

Preparing for retirement

Learn about the steps to take to prepare for your retirement and how to secure and grow your money along the way.

Transition to retirement

Once the time comes, find out how to comfortably transition your savings into retirement income and organize your assets.

Retiring for couples

If you have a long-term partner and are planning to retire together, explore income opportunities for couples.

Ready to retire? Turn savings into income.

Your retirement income comes in many forms. You may have a guaranteed income from work, Canadian (or Quebec) Pension Plan, Old Age Security and your own savings. We can help make sure that what you have is enough for the life you want, and the money you invested is available if you need it.

Registered retirement income fund (RRIF)

It’s time to live the life you saved up for. Converting your RRSP into something that can allow you to have the life you envisioned is the first step. Learn all the know-hows of this process.


Invest your savings into a stable and regular paycheque for life with a life annuity. Income annuities are an easy way to help ensure your needs are covered throughout retirement.

Take care of a legacy

Estate protection is a way to know your hard-earned legacy will be passed on to the people and causes you care about.

It helps you protect and potentially grow your wealth, secure a smooth estate transition and avoid unnecessary fees in the process.

4.RESP (Registered Education Savings Plan)

Help your kids get a great education

Take advantage of government contributions and tax-free savings to help your kids on their way to success.

Grow savings tax-fee

The money in the account grows tax-free and your contributions won’t be taxed when withdrawn.

Contribution matching

Receive up to $500 per year for a lifetime total of $7,200 per child from the government.

Withdrawn at a lower tax rate

When the money is withdrawn it is taxed at your kid’s tax rate.

RESP (Registered Education Savings Plan)

An RESP is supported by the federal and some provincial governments. It helps you save money for a child’s future education, where the investments inside the investment account grow tax-free.

There is life-time limit of $50,000 per beneficiary and amounts contributed in excess of this are subject to a penalty tax of 1% per month on the excess until the over-contribution is withdrawn.

How does an RESP work?

· Open an RESP account for one or more beneficiaries (child/children). They must be a Canadian resident and have a valid social insurance number (SIN).

· There’s no minimum amount to start.

· You can set a monthly contribution minimum of $25. You may also qualify for government grants based on your contributions.

· You and your spouse can contribute to one account.

· You may keep an RESP open for up to 35 years (or 40 years if you have a specified plan), so if the child doesn’t pursue education right away, there’s still time.

· When the money is withdrawn for post-secondary education, your own contributions will not be taxed. But grants and growth that accumulated inside the plan are taxed at the student rate. However, since many students have little or no other income, they can usually withdraw the money tax-free.

Who can open an RESP?

Generally, the following people can open an RESP:

· Parents  · Guardians  · Grandparents  · Relatives  · Friends

How federal grants work

Under the Canadian Education Savings Grant you can contribute up to $50,000 in an RESP, but there are limits to receiving help from the federal government

Annual grant

Each child can receive a maximum of $500 per year from the Canada Education Savings Grant (CESG) - Opens in a new window if you contribute the annual maximum of $2,500. If you didn’t contribute the maximum amount in previous years to receive the full amount of grants available, you can carry forward the previous years’ unused grant amounts for use in future years. However, you can only catch-up on missed grants one year at time as only contributions up to $5,000 per year will attract grant money. This a good reason to start saving sooner.

Lifetime limit

The maximum amount that each child can receive in grants is $7,200. Additionally, grants are only available on contributions made by the end of the calendar year in which the child turns 17 years of age. However, there are certain requirements for children who are aged 16 or 17 which means that in order to be eligible for the CESG, you must start to save in RESPs for your child before the end of the calendar year in which they turn 15 years of age. This is another reason to start saving sooner.

Additional grants

If your family’s net income is less than $48,535 in 2020*, you may be entitled to an additional 20% grant on the first $500 of annual contributions, for a total of $100 per year. Where a $2,500 annual contribution has been made, this can result in total annual, grants of $600, to the maximum of the lifetime limit of $7,200. And if your family’s net income is more than that but under $97,069 in 2020*, the additional grant is 10% on the first $500 of contributions each year for a total of $50. In which case, your child can receive $550 per year.

What about a child that doesn’t go to school?

School may not be for everyone. But college and university aren’t your kid’s only options. There are many other programs that an RESP can be used for, including foreign educational institutions abroad, trade schools or apprenticeships

Don’t rush

An RESP can be kept open for up to 35 years (or 40 years for a specified plan). There’s plenty of time for someone to go back to school as their career and interests change.

Transfer to another RESP

You may be able to transfer the money between RESPs with the same beneficiaries without having to pay taxes. Additionally, grants may be shared with a sibling if they have grant room available, otherwise they must be reimbursed to the government.

Withdrawing from an RESP

Your contributions

If the child doesn’t attend post-secondary school, you can withdraw your contributions, which could be as much as $50,000, with no tax consequences or penalties. But all earnings from your investments are taxed as regular income in the year you receive them and could be subject to an additional tax of 20%.

Government grants

A formula is used to return an amount of CESG, QESI and SAGES to the government if you request a refund of contributions and no students are eligible for an EAP because they haven’t started post-secondary education. If contributions that attracted CESG are withdrawn before a student is eligible for an EAP, all students under the RESP aren’t eligible to receive the additional CESG for the remainder of the year and the next 2 calendar years. Repayments of CLB and BCTESG are not triggered by a refund of contributions.

Transfer to an RRSP

You can transfer $50,000 of earnings tax-free to your or your spouse’s RRSP as long as the child is over 21 years old, the RESP has been open for 10 years and there is sufficient contribution room in your or your spouse’s RRSP. This will avoid the 20% additional tax.

The information provided is based on current laws, regulations and other rules applicable to Canadian residents. It is accurate to the best of our knowledge as of the date of publication. Rules and their interpretation may change, affecting the accuracy of the information. The information provided is general in nature, and should not be relied upon as a substitute for advice in any specific situation. For specific situations, advice should be obtained from the appropriate legal, accounting, tax or other professional advisors.

Footnote * * Thresholds are subject to an annual indexation adjustment.

5.(TFSA) Tax-free Saving Account

Let your money bring your goals closer

Take advantage of the flexibility to access your savings for what you want, when you need it.


It’s set up for short and long-term goals so you can use your money for what you really want.

Access your money tax-free

Your money can grow in your account and you can withdraw it tax-free when you need it.

Get contribution room back

When you take money out, that room gets added back the next year so you can use it again.

What is a tax-free savings account?

Despite its name, it’s not a typical savings account – it’s a place where you can put investments like mutual funds or segregated funds.

It’s versatile, so you can use it to save for a more immediate goal, like saving for a new car or a trip, but you can also use it to save for your retirement. It’s partner, the RRSP, on the other hand, is just typically used for long-term investing.

How does it work?

When you’re 18 and have a valid Social Insurance Number, you can open a TFSA with help from an advisor who can set you up with investments that meet your goals.

· You can contribute monthly but make sure to stay within the yearly limits, which is $6,000 for 2022. Your contributions aren’t deductible for income tax purposes.

· Your investments can grow tax-free.

· Withdraw your money tax-free when you’ve reached your goal or if something unexpected happens.

· After you take money out, your contribution room is restored in the following year, so you can put the money back (recontribute) then with no penalties.

· If you skip a year, or even 10, unused contribution room just rolls over to the next year.

Is a TFSA a good choice for you?

It’s a perfect option if you:

· Want to save but might need quick and easy access to cash.

· Just started working but don’t earn enough to benefit from RRSP tax breaks.

· Have a financial goal in mind, like buying a car or a house.

· You want your savings to grow tax-free and be able to take out money without paying taxes on investment income.

· Looking for an investment account to complement your RRSP.

How can you open a TFSA?

It’s easy to open a TFSA. There are 3 main criteria:

· 18 or older

· Have a Canadian social insurance number

· Are a Canadian resident

How much money can you put in a TFSA?

The Canada Revenue Agency (CRA) allows a specific amount of contribution room each year. Contribution room is cumulative so any room from previous years continually carries over – meaning you can continue contributing as your total contribution room grows annually.

Find your own limit

You can find out how much money you’re currently allowed to contribute to a TFSA by signing into the Canada Revenue Agency website .