Investment Accounts

Once you have determined your investment goals and level of involvement, the next step is to optimize registered and non-registered accounts for your overall financial strategy.

Each registered account has its own fiscal advantages: tax deferral, tax-free income and capital gains, education subsidies are some examples. These accounts have limitations on withdrawals and deposits that are determined by the federal and provincial governments. In the case of non-registered accounts, only the annual value of realized income (interest and capital gains) in those accounts must be reported in your tax return. These therefore allow for more freedom as to amounts deposited or withdrawn, and in the timing of these transactions.


Registered Accounts

Retirement Planning

Various plans are offered in order to provide a retirement capital by delaying income tax depending on whether you have a retirement plan established by your employer.

Learn more about RRSP, RRIF, LIRA and LIF

  • RRSP

    A Registered Retirement Savings Plan (RRSP) allows you to grow your assets tax-free using various investments (see our investment products). The amounts invested within the plan are a tax deduction from your taxable income at your highest marginal tax rate. Your reported income is therefore decreased, resulting in tax savings. Taxes will be applied to funds withdrawn from an RRSP, normally at the time of retirement. During this period in life, income is often lower and so a lower tax rate applies. Under certain conditions, the amounts may be withdrawn before retirement. The plan ends on December 31 of the year you reach the age of 71, at wich time your RRSP rose into a RRIF (see below).

  • RRIF

    A Registered Retirement Income Fund (RRIF) can be used when an RRSP ends. RRSP capital is then transferred to a RRIF. Your investments will continue to grow tax-free, but you must make a government mandated minimum withdrawal each year. You can of course withdraw sums greater than the minimum requirement since the goal of this product is to provide retirement income. These withdrawals are considered taxable income.

  • LIRA
    A Locked-in Retirement Account (LIRA) receives funds from a supplemental pension plan which is generally established by an employer. The plan allows you to delay the tax on investment earnings until withdrawal. These amounts may be withdrawn at retirement. You must then transfer these to a Life Income Fund (LIF) or purchase a life annuity from an insurer.
  • LIF
    A Life Income Fund (LIF) allows you to delay the tax on investment income where the amounts invested normally come from a supplemental pension plan or LIRA. At the time of retirement, a minimum amount is withdrawn each year and the maximum withdrawal is capped. Withdrawals are considered taxable income.

Goals Planning

Whether to fund your children’s or your own education, to save for a house, a car or to take a trip, there are plans that allow you to grow your investments tax-free while providing the flexibility to utilize your capital as needed.

Learn more about the TFSA, RESP and SSP

  • TFSA
    A Tax-Free Savings Account (TFSA) generates investment income that is not taxable. Each year, a maximum contribution can be made. Unused annual contributions accumulate and can be carried over to future years. The amounts can be withdrawn at anytime without tax consequences.
  • RESP
    A Registered Education Savings Plan (RESP) shelters investments, saved from post-secondary education, from taxes. Financial gains are not recognized in the RESP holder’s income until they are withdrawn. However, these amounts are taxable for the person enrolled in a postsecondary program who receives these funds. Government education grants may be deposited in this plan.
  • SSP
    The Stock Savings Plan (SSP) allows Quebecers to deduct from their taxable income the amount invested in common shares or investment fund securities issued by some small and medium Quebec businesses. Investors must hold these shares on December 31st for at least three consecutive years

Non-Registered Accounts

Accounts for the various types of investment strategies you choose to adopt.

Cash Account

For the client who plans to settle each transaction in full.

Margin Accounts

These accounts are for sophisticated investors and can amplify the impact of an investment’s value through leverage. These accounts are available in three forms: margin account, options account and short selling account.

Learn more margin accounts

  • Margin Account
    For the client who intends to borrow funds to be secured by assets that they plan to buy or already hold in their account.
  • Options Account
    Margin account in which one can trade options.
  • Short Sale Account
    Margin account in which you can, under certain conditions, sell securities you do not own.

Caution: In these types of accounts, the value of the margin granted is guaranteed by the market value of securities used as collateral. As this value fluctuates, so will the available loan value. This can lead to margin calls; requirements for additional funds to be deposited in the account.