Our representatives can help you evaluate the benefits provided by each of the products on the market and make informed choices among the many investment products available. They will help you develop customized financial solutions that best suit your objectives and needs, including your tolerance for risk.
– Mutual Funds
A mutual fund investment is an investment portfolio owned by an investment company which manages the capital of a large number of investors, to invest it in shares, bonds, and other securities without losing sight of the investment objectives. The capital you contribute to a mutual fund enables you to buy shares, or units, of that fund. Funds vary according to the types of investment objectives, the style of management, and the type of investment in a particular fund.
Botica Financial Group represents the major mutual fund companies on the Canadian market. Our financial advisors can help you determine which funds fit your financial goals and profile.
– Segregated Funds
Similar to mutual funds, segregated funds manage the capital of a large number of investors, to invest it in shares, bonds and other securities without losing sight of the investment objectives. A segregated fund is similar to a mutual fund investment however, it is comprised of additional characteristics for it is governed by the Insurance Act.
Death benefit guarantee
Possible protection against creditors
Possibility of bypassing the delays and probate fees
Botica Financial Group represents the most important companies on the Canadian market. Our financial advisors can help you determine which funds fit your financial goals and profile.
– Guaranteed funds
Guaranteed investment certificate (GIC)
A certificate issued by the bank for a duration of 30 days (short-term deposit) or more, with fixed interest rates.
Guaranteed interest fund (GIF)
Similar to the traditional GIC’s for you deposit and obtain a return on the dividends and interests however, you sign a contract with an insurance company, which allows you to benefit automatically from the exclusive advantages of that company’s products, that is; named beneficiaries and creditor protection
Either one or several deposits in an insurance company, which, in exchange provides you periodically with income payments made up of interest and capital which are determined according to age, current interest rates, the period during which the payments are guaranteed, the amount of money that will serve to pay the annuity.
Annuities can satisfy various needs, such as :
- The need for periodical income payments during one’s entire lifetime
- The need for pre-determined income payments
- As part of a retirement plan in order to receive a constant stream of payments
- Need for a simple form of investment plan to avoid juggling constantly with different investment options
- Diversified investment portfolio
Term certain annuities
Registered or non-registered annuities
Types of accounts
– Tax Free Savings Account / TFSA
This is a registered account where the income earned (ie. interest or capital gains) is tax free, even when it is withdrawn from the account.
You can contribute a maximum of $ 5,500 per year to a TFSA. The contributions you make are not deductible for tax purposes.
In general, the types of eligible investments in a TFSA are the same as those eligible in a registered retirement savings plan (RRSP). This includes mutual funds, listed securities, guaranteed investment certificates (GICs), bonds and certain shares of companies exploiting a small business.
– Registered Retirement Savings Plan / RRSP
An RRSP is a registered account that allows you tax-sheltered investments prior to withdrawal. According to certain conditions, each dollar that you invest in a retirement savings plan reduces your taxable income. Once you have invested in a RRSP, it can be tax-deferrable until its withdrawal.
The main purpose of an RRSP is to provide you with retirement income, Canada Revenue Agency stipulates that you must start withdrawing tax-deductible income after December 31 st of your 71’th year. However, this does not mean that your savings are out of reach until that moment. If you require emergency funds, you may, for example, present a simple withdrawal request and pay the applicable income on it.
Registered Retirement Income Funds represent one of the best fiscal plans proposed by the Canadian government.
– Registered Retirement Income Fund / RRIF
RRIF (Registered Retirement Income Fund) is a flexible income solution that lets you make a cash withdrawal according to your needs and determines the arrears payment period (without age limit). In fact, the RRIF can be seen as an extension of the RRSP and also resembles it in the sense that one can invest in various types of securities. However, each year, one has to withdraw at least a “minimum amount” and declare it for income tax purposes.
The Canada Revenue Agency says you must start withdrawing a fully taxable income after December 31 of the year in which you reach the age of 71.
If you have a spousal RRSP, you can convert it to a Spousal RRIF. The Spousal RRIF is also accompanied by a minimum annual withdrawal requirement.
– Locked-In Retirement Account/ LIRA – Locked-in RRSP
LIRA (locked-in retirement account) is a type of savings account that specifically allows the transfer of savings made under an approved pension plan of an employer. With the same kind of benefits of an RRSP, it is a solution that also gives you the opportunity to increase your retirement income by term deposits and investments. The notable difference between the LIRA and the RRSP is that the possibilities of disbursement in a LIRA are subject to somewhat stricter regulations.
LIRA, locked-in RRSP? It’s the jurisdiction (federal or provincial) under which your employer’s pension plan was established that determines which of the systems you need to transfer the money derived from it.
Unlike an RRSP, investments are capitalized as they are intended to provide you with a retirement income that you cannot usually redeem.
You must convert your LIRA or locked-in RRSP to a LIF / LRIF or life annuity by December 31st of the year in which you turn 71.
-Life Income Fund / LIF and Locked-in Retirement Income Fund LRIF
Life Income Fund (LIF) and Locked-in Retirement Income Fund (LRIF) allows you to grow tax-free during your retirement payments from your LIRA or locked-in RRSP or from your locked-in investment.
Many Canadians have locked-in funds such as locked-in RRSPs, LIRAs and registered pension plans. For many years, the pension was the only choice of withdrawal of these funds. Now in many provinces, it is possible to transfer funds to a life income fund (LIF), with a flexibility of arrears and a minimum withdrawal, but (instead of the RRIF) with a maximum limit.
In all provinces except Quebec and New Brunswick, investors who reach 80 years should use the remaining funds in their LIF to purchase a life annuity.
- You must transfer the investments you hold in your LIRA, LRSP or LIRA to a LIF or LRIF at the latest December 31 of the year you turn 71.
- Once you have entered your lifetime withdrawals, you must withdraw each year an amount that is between a minimum and a maximum prescribed by the tax rules. The maximum withdrawal is explained by the fact that this amount will be sufficient to provide an income until your death.
- The money you withdraw from your LIF or LRIF are included in your taxable income for the current year.
– Registered education Savings Plan / RESP
The Registered Education Savings Plan (RESP) allows you to easily accumulate capital for post-secondary education for your children or grandchildren. By investing in an RESP, you enjoy advantageous Government grants and your savings grows tax-free.
An RESP is one of the best ways to invest in your child’s future. The government grants that are added to your contributions are equivalent to an impressive return of at least 30%.
- Canada Education Savings Grant (CESG): up to $500 per year, for a maximum of $7,200
- Québec education savings incentive (QESI): up to $250 a year, for a maximum of $3,600
- The Canada Learning Bond (CLB) – This link will open in a new window. helps modest-income families save toward the education of children under the age of 15. Eligible families receive an initial amount of $500 the first year the RESP is opened. After that, the CLB pays an additional $100 per year up to a maximum of $2,000 each year the family remains eligible.
– Registered disability savings plan / RDSP
A registered disability savings plan (RDSP) is a savings plan that is intended to help parents and others save for the long term financial security of a person who is eligible for the disability tax credit (DTC).
Contributions to an RDSP are not tax deductible and can be made until the end of the year in which the beneficiary turns 59. Contributions that are withdrawn are not included in income for the beneficiary when they are paid out of an RDSP. However, the Canada disability savings grant (grant), the Canada disability savings bond (bond), investment income earned in the plan, and rollover amounts are included in the beneficiary’s income for tax purposes when they are paid out of the RDSP.