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Registered Investment Options

Registered Accounts


Our Mortgage Investment Corporation also supports investments from within a variety of registered plan types.

Registered Education Savings Plans (RESP)

Registered Education Savings Plans (RESPs) are a type of account that encourages parents to save for a child’s future post-secondary education. RESPs offer the following benefits:

  • Tax-deferred asset growth.
  • Both Federal and Provincial governments offer a variant of government grants for RESPs, detailed information may be found at the CRA link below.
  • Withdraws from RESPs (specifically the investment growth and government grants) are generally taxed at the recipient’s tax rate, which is beneficial given that the recipient would typically be a low income student at the time of withdraws.

Detailed information regarding RESPs may be found on the Canada Revenue Agency website, at the following link:
 
RESP – Read More

Registered Retirement Savings Plans (RRSP)

Registered Retirement Savings Plans (RRSPs) are a common account that promotes individual savings for retirement. RRSPs offer the following benefits:

  • RRSP contributions are deductible from taxable income, which in turn reduces income taxes payable.
  • Asset growth (e.g. income, capital gains) within an RRSP is tax-deferred, as funds are not taxed until they are withdrawn from the RRSP.
  • Withdraws from RRSPs are taxable as income at the time of withdraw, ideally following retirement, at which point in time the annuitant is likely to be subject to a lower marginal tax rate.

Detailed information regarding RRSPs may be found on the Canada Revenue Agency website, at the following link:
 
RRSP – Read More

Spousal RRSP

Spousal RRSPs are similar to individual RRSPs, but with some key differences. The contributor for a Spousal RRSP is different than the annuitant. For example, a wife (contributor) could contribute to her husband’s Spousal RRSP, in which case the husband would be the annuitant. The contributor would receive a deduction from taxable income, reducing income tax payable. Withdraws from the Spousal RRSP would then be taxable income for the annuitant, after a certain period of time has elapsed. The above differences mean that Spousal RRSPs can be used as a method of splitting income in retirement.

Detailed information regarding SRRSPs may be found on the Canada Revenue Agency website, at the following link:
 
Spousal RRSP – Read More

Tax-Free Savings Accounts (TFSA)

Tax-Free Savings Accounts (TFSAs) are a relatively new form of account, which began January 1, 2009. TFSAs offer the following benefits:

  • $5,000 may be contributed to a TFSA each year.
  • The annual contribution limit will increase over time, based on indexing to the Consumer Price Index (CPI), with increments of $500.
  • Unused space may be carried forward to future years.
  • Account holder may withdraw funds from a TFSA at any time, tax-free, including all asset growth since the original contribution.

Detailed information regarding TFSAs may be found on the Canada Revenue Agency website, at the following link:
 
TFSA – Read More


 

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