Priority Financial Inc.

Savings

Save for retirement

Registered retirement savings plans (RRSPs) are still one of the most popular ways to save for your retirement.

Contributions are tax-deductible and taxes are deferred until you withdraw your money.

Grow your money tax-free

With a tax-free savings account (TFSA), you don't pay tax on any money earned or withdrawn. You can contribute to a TFSA at any time, and your unused contribution room is carried forward each year. Use these savings for education, a down payment on a home or other large expenses.

Help your kids get a great education

Registered education savings plans (RESPs) offer an effective, tax-free way to maximize the money available to your children or grandchildren when they enrol in a full-time post-secondary program. Parents, grandparents, other family members and friends can open an RESP for a child. As the cost of post-secondary education continues to rise, it's becoming even more important to start saving early for their future education.

Segregated funds

Protect your wealth as it grows.

Segregated funds invest in a variety of stocks and bonds. They're different than mutual funds. They offer unique protection features that are only available through insurance companies. They're a great way to save for your retirement and investment goals.

How do they work?

Mutual and segregated funds work the same way.

For both investment options, money is pooled together for the benefit of the investors, and to buy a variety of different investments based on the fund's investment goals. This does two things:

It gives you access to investment managers, which may make it easier for you, since investing on your own can be complicated.
It spreads your money among different investment options, to help reduce investment risk. For instance, if you put all your money in one stock, and it goes down, you could be in trouble. Segregated and mutual funds split money among various investment options held in a single fund, so there's less risk.

Mutual funds vs segregated funds?

A variety of options for your consideration.

Category	Mutual funds	Segregated funds
Type of investment	A pool of money spread across different investments, managed by experts.	A pool of money spread across different investments, managed by experts.
Guarantees	None	Insurance guarantees can protect much or even all your original investment at death and policies maturity date.
Fees	Less than segregated fund policies	More than mutual funds due to paying a premium for the insurance guarantee
Variety of investment options	Similar	Similar
Estate planning	Mutual funds held within a registered plan, proceeds are passed on to your named beneficiaries when you die. No probate tax.	When you die, proceeds go directly to your named beneficiaries and won't flow through your estate. No probate tax.
Potential creditor protection	For mutual funds held within a registered plan, bankruptcy protection may apply.	Yes¹

1. Creditor protection depends on court decisions and applicable legislation, which can be subject to change and can vary from each province; it can never be guaranteed. Talk to your lawyer to find out more about the potential for creditor protection for your specific situation.

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Find ways to save, achieve your goals and make sure the money you've worked hard for is working for you.