SEGREGATED FUNDS - A Segregated Fund is an investment with built in protection. It comes with maturity and death guarantees and has the ability to bypass probate upon death.   It is safe from creditors and you can name a beneficiary. This means your money can pass directly to whomever you wish, completely confidential.  

TFSA - Tax Free Savings Account is a type of tax shelter for an investment of your choosing. Any growth on an investment inside a TFSA will be completely tax free - as it grows and when it is taken out.  The amount an individual can contribute to their TFSA grows every year starting at age 18.  

RRSP - A Registered Retirement Savings Plan is a type of tax shelter for your investments.  Any growth on an investment inside a RRSP is considered tax deferred.   Putting money into a RRSP generates a tax deduction based on your current tax bracket.  However any money taken out of an RRSP is considered income the year it is withdrawn.  This means you pay taxes at your full tax rate on the full withdrawal.  

RESP - A Registered Education Savings Plan is a type of tax shelter for your investments. Any growth on an investment inside an RESP is considered tax deferred.  Canadian Education Savings Grant will match approximately 20% of annual contributions (Up to a maximum of $500 per year).  Money taken out of an RESP is considered income in the hands of the student in the year it is withdrawn. This means they will pay taxes on the full amount including the growth and grants at which ever tax bracket they are in. 

ANNUITY- An Annuity is an agreement between an individual and an insurance company.  The individual pays a lump sum to the insurance company and in return the insurance company pays the individual a set annual income.   This set income may begin immediately or at some point in the future. As a result, the risk is transferred from the owner to the insurance company, and the owner then has a steady stream of income usually during retirement. 

GIC/GIA - A Guaranteed Investment Account  or Guaranteed Investment Certificate is a deposit with an insurance company or bank by an individual with an agreement of interest to be paid in return over a set period of time.  GIAs have the ability to bypass probate and are creditor protected. GIAs can also have designated beneficiaries, this means your money can pass directly to whoever you wish, completely confidential.  


The articles and information provided on this website are intended to raise issues and help you find solutions and should not be construed as advice for any specific situation or individual. Always consult

your representative and your tax or legal professional, as applicable, before taking personal action.

Mutual funds are offered through Networth Financial Corp. (NFC), member of the MFDA and MFDA Investor Protection Corporation. Commissions, trailing commissions, management fees, and expenses

may all be associated with mutual fund investments. Please read the Fund Facts Sheets before investing. Mutual funds are not covered by the Canada Deposit Insurance Corporation or by

any other government deposit insurer and are not guaranteed, their values change frequently and past performance may not be repeated.

Our  representatives may be dual licensed for the sale of insurance products. As such, you may be dealing with more than one company depending on the products or services provided. NFC is responsible only for business licensed under the Provincial Securities Act & Regulations. It does not supervise or review any other business. All other services are the responsibility of another licensed entity and not the responsibility of NFC.