Investments

A TFSA, or Tax-Free Savings Account, is a Canadian financial account where individuals can save and invest money without paying taxes on the income generated. Contributions are made with after-tax dollars, and any investment gains and withdrawals are tax-free. It's a flexible savings and investment tool with an annual contribution limit.

An RDSP, or Registered Disability Savings Plan, is a Canadian savings program for individuals with disabilities. Contributions aren't tax-deductible, but the investments grow tax-deferred. The government provides grants and bonds, and withdrawals, usually taxed in the beneficiary's name.

An RRSP, or Registered Retirement Savings Plan, is a Canadian account that offers tax benefits for retirement savings. Contributions are tax-deductible, and the investments grow tax-deferred until withdrawal, typically during retirement when taxes may be lower. It's a key tool for long-term financial planning in Canada.

A mutual fund is an investment option where investors pool their money to buy a diversified portfolio of stocks, bonds, or other securities. Managed by a professional fund manager, investors own shares in the fund, and the value fluctuates based on the performance of the underlying assets. It offers a convenient way to invest in a diverse portfolio without directly managing individual securities.

An RESP, or Registered Education Savings Plan, is a Canadian account for saving for a child's education. While contributions aren't tax-deductible, the investment growth is tax-deferred. The government may offer grants, and when the child attends post-secondary education, the funds can be withdrawn to cover expenses, taxed in the student's name.

A segregated fund is an investment product provided by life insurance companies, blending insurance and investment features. Investors can allocate funds to various investments, with a guarantee of a return of part of the principal, offering capital protection and estate planning benefits.