Investment Holdings

Wealth Management

We at estate nest offer professional service with a blend of safeguarding your life and your financial assets to help you and your family achieve your retirement goals with strategic planning around your unique financial needs. Our aim is to strategize financial plan during buildup years to make sure your investment holdings have the anticipated longevity and endurance to outlast your retirement years and transfer your estate to your loved ones

Retirement Planning
Government of Canada Resources of Revenue

Old Age Security

Taxable compensation to Canadians 65 years or older with salary less than $ 122,843
Basic amount is $ 586.66 per month as of Jan 2018- Amounts are indexed to Canadian Consumer Price Index and are attuned on a quarterly basis
No revenue splitting and no survivor reimbursements
OAS Claw-back occurs over $ 74,788 income (as of 2017) and an individual must refund a part of their OAS at 15% of the net income
Must meet the entitlement rules to be qualified to OAS [more information available on Government of Canada website]

Canada Pension Plan or Quebec Pension Plan

Canada’s contribution dependent retirement income system that forms the backbone of Canadians’ social insurance plan set up by the federal government.
CPP gets subsidized by contribution grants of workforces', companies, entrepreneurial and freelancers’ as well as revenue generated on CPP investments Province of Quebec have their own plan – QPP
Canadians above 18 years of age are mandated to contribute a fraction of their wage to federal government managed pension plan [more information available on Government of Canada website]

Segregated Funds

A valuable and niche estate planning tool presented by Canadian insurance companies that safeguard monetary investment assets with the insurance guarantee

Pros

Bypass Probate
Creditor and liability protection
Securing your principal investment against market volatility
Reset option allowing the holder to lock in market gains

Account Types

Registered Education Savings Plan - RESP

RESP is an ideal financial tool offered by the government of Canada to support families put aside funds to lay the groundwork for their kid’s strong and bright educational future in life
Parents acknowledge the tax-sheltered environment to stockpile and capitalize funds and take complete advantage of government grants for their angels (kids)
RESP providers are financial institutions that can assist families to open RESP accounts; can be either bank, credit unions, group plan dealers, insurance companies
The subscriber registers the RESP contract with sponsor and names one or more beneficiaries under the RESP plan
RESP contributions are matched by government grants – Canadian Education Savings Grant (CESG) and Canadian Learning Bond (CLB). CESG is 20% of the contribution and with a maximum of $500 per year and $ 7,200 lifetime. CLB is to encourage low-income families to contribute to RESP
Funds within RESP can be invested in mutual funds, segregated funds, stocks, GICs, bonds etc.
RESPs have administrative fees; therefore, it is important to take time to read before countersigning the contract
Penalties may be applied if regular payments to RESPs are stopped and or accounts are closed

Registered Retirement Savings Plan - RRSP

Tax-adjourned savings program designed by the government of Canada encouraging Canadians to economize, save and capitalize for retirement. Contributions within RRSP are tax deductible. There is an annual limit of 18% of eligible income up to $ 26,230. This limit is called contribution room or contribution limit
Unused RRSP contributions can be carried forward to the subsequent following year
Contributions can be made for spouses as spousal RRSPs by the spouse with the higher salary. These contributions are tax-deductible to contributing partner. It is one of the efficient ways of splitting income in retirement. Please refer to three-year attribution rule on CRA website to understand the withdrawals from spousal RRSP contributions
RRSP contributions can be used as down payment for first time home buyer under home buyers plan – maximum loan amount available to buyers is $ 25,000 – loan must be repaid in 15 years
RRSP contributions can be used for lifelong learning plan – maximum loan amount available while enrolled in education is $ 20,000 – loan must be repaid in 10 years
RRSP withdrawals are taxable income
RRSP gets converted to Registered Retirement Income Fund at the age of 71

Locked in Retirement Account - LIRA

LIRA is designed to accumulate and holds pension funds in a company’s pension plan for employees (defined benefit or defined contribution plan) when you are no longer employed for that company and are not the part of their pension plan and are not retired
Cannot make any contributions and cannot make withdrawals to funds within LIRA
LIRA is guided by pension laws. It is registered provincially and is subject to the rubrics and protocols by the laws of that province.
Funds within LIRA are not entitled to any home buyers or lifelong learning
LIRA gets converted to Life Income Fund (LIF) or Locked Retirement Income Fund (LRIF) at the retirement. The earliest age to convert is 55 and the latest it can be done by 71 years of age

Locked Income Fund - LIF

The plan offered by the government of Canada that is designed to create regulated retirement income for pension funds
LIF is a treasured thought of consideration for Canadians with a Defined Contribution Pension Plan
Assets within LIF can be invested n GICs, Mutual Funds, Segregated Funds, Stocks, etc.

Registered Retirement Income Fund - RRIF

The tax-deferred plan offered by the government of Canada, designed to generate revenue from savings amassed within Registered Retirement Savings Plan
RRIF is regulated by the Canada Revenue Agency (CRA), designed for steady retirement income

Tax-Free Savings Account - TFSA

Tax-Free Savings Account is the government of Canada’s tax-sheltered savings program started in the year 2009 encouraging Canadians to economize, save and capitalize for short-term like emergency funds, and long-term goals like retirement.
The TFSA account can be opened at the age of 18 by Canadians. The contribution limit for the year 2019 is $ 6,000. This limit is decided by Government of Canada and shall be verified before opening the account from the Government of Canada 's website.
Since contributions are after tax within TFSA account the interest earned or capital gains for investments within TFSA and the withdrawals from TFSA are all tax-free.
You need a valid Social Insurance Number to open and set the money tax-free throughout the lifetime.

Non-Registered Account

Investment holding accounts offered by financial institutions for Canadians.
Usually opened by an individual after maximizing their RRSP and TFSA contributions and the individual still has capital funds to invest
Non-Reg accounts have the suppleness and flexibility with steady liquidity and no set rubrics for contribution and limits
Capital gains from investments within non-registered accounts are taxable at 50% of the account holder’s marginal tax rate