INVESTMENT & SAVINGS SOLUTIONS
Investment decisions should reflect your financial goals, time horizon, liquidity needs, risk tolerance and tax situation.
Different investment products and registered plans offer different levels of market exposure, guarantees, tax treatment and access to funds. A suitable strategy should consider how these features work together within your overall financial plan.
SEGREGATED FUNDS
Segregated funds are investment funds offered through an insurance contract. Like mutual funds, they may invest in diversified portfolios such as equities, fixed income and other asset classes, and are professionally managed.
Depending on the contract selected, segregated funds may also provide insurance-based features such as maturity guarantees, death-benefit guarantees, beneficiary designations, reset options and potential creditor protection. Investment values can rise or fall, and guarantees and other features are subject to the terms of the contract.
✓ Professionally Managed Investment Options
✓ Diversified Market Exposure
✓ Maturity Guarantees, depending on the contract
✓ Death-Benefit Guarantees, depending on the contract
✓ Beneficiary Designations
✓ Potential Estate-Planning Advantages
✓ Potential Creditor Protection in Certain Circumstances
✓ Different Investment Styles & Risk Levels Available
✓ Reset Options May Help Lock In Higher Guarantee Values
RESET FEATURE
Depending on the contract, a reset feature may increase the death-benefit guarantee to a higher market value when the investment has grown. This may help preserve a higher guaranteed amount for beneficiaries if markets later decline.
TAX-FREE SAVINGS ACCOUNT (TFSA)
A TFSA is a registered account that allows eligible Canadian residents to save and invest while generally earning interest, dividends and capital gains tax-free. Contributions are not tax-deductible, and eligible withdrawals are generally tax-free.
For 2026, the annual TFSA dollar limit is $7,000, in addition to any unused contribution room carried forward from previous eligible years.
Amounts withdrawn are generally added back to your available contribution room in the following calendar year, so re-contributing a withdrawal in the same year requires sufficient unused contribution room.
✓ Tax-Free Investment Growth
✓ Tax-Free Eligible Withdrawals
✓ Unused Contribution Room Carries Forward
✓ Withdrawn Amounts Generally Restore Contribution Room the Following Year
✓ Can Hold Different Eligible Savings and Investment Options
✓ Flexible for Short- or Long-Term Financial Goals
REGISTERED-RETIREMENT SAVINGS PLAN (RRSP)
An RRSP is a registered savings plan designed primarily for retirement. Eligible contributions may be deducted from taxable income, and investment growth is generally tax-deferred while funds remain in the plan. Withdrawals are generally included in taxable income.
Your available contribution room is based on factors such as prior-year earned income, unused room carried forward, and applicable pension adjustments. For 2026, the RRSP annual dollar limit is $33,810, although each person’s actual deduction limit is determined individually by CRA.
✓ Potential Tax-Deductible Contributions
✓ Tax-Deferred Investment Growth
✓ Unused Contribution Room May Carry Forward
✓ Spousal RRSP Options May Be Available
✓ Designed for Long-Term Retirement Savings
✓ Certain Eligible Withdrawals May Be Available Through Programs Such as the Home Buyers’ Plan, subject to applicable rules
REGISTERED EDUCATION SAVINGS PLAN (RESP)
An RESP is a registered savings plan designed to help save for a beneficiary’s post-secondary education. Contributions are not tax-deductible, while investment growth is generally tax-deferred while funds remain in the plan.
There is no annual contribution limit, but the lifetime contribution limit is $50,000 per beneficiary across all RESPs opened for that beneficiary.
Eligible beneficiaries may also receive the Canada Education Savings Grant (CESG). The basic CESG generally adds 20% on the first $2,500 of annual contributions, up to $500 per year, with a $7,200 lifetime maximum. Unused grant room may allow up to $1,000 of basic CESG in a later year, subject to eligibility.
✓ Save for Post-Secondary Education
✓ Tax-Deferred Investment Growth Within the Plan
✓ $50,000 Lifetime Contribution Limit per Beneficiary
✓ Basic CESG of up to $500 per Year
✓ $7,200 Lifetime CESG Maximum
✓ Individual and Family RESP Options May Be Available
REGISTERED DISABILITY SAVINGS PLAN (RDSP)
An RDSP is a long-term registered savings plan designed to help support the financial security of an eligible beneficiary who qualifies for the Disability Tax Credit (DTC). Investment growth is tax-deferred while funds remain in the plan.
There is no annual contribution limit, but the lifetime contribution limit is $200,000 per beneficiary. Contributions may generally be made until the end of the year in which the beneficiary turns 59.
Eligible beneficiaries may also receive:
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up to $70,000 in lifetime Canada Disability Savings Grants
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up to $20,000 in lifetime Canada Disability Savings Bonds
Grant and bond eligibility depends on factors such as family income, contributions and age. No personal contribution is required to qualify for the bond where eligibility requirements are met.
✓ Long-Term Savings for an Eligible Beneficiary
✓ $200,000 Lifetime Contribution Limit
✓ Up to $70,000 in Lifetime Grants
✓ Up to $20,000 in Lifetime Bonds
✓ Tax-Deferred Investment Growth Within the Plan
✓ Grant and Bond Carry-Forward May Be Available, subject to eligibility
FIRST HOME SAVINGS ACCOUNT (FHSA)
An FHSA is a registered plan that allows eligible first-time home buyers to save and invest toward the purchase or construction of a qualifying first home. Contributions are generally tax-deductible, while qualifying withdrawals are tax-free.
In the year you open your first FHSA, you receive $8,000 of participation room, with a $40,000 lifetime limit. Unused participation room may be carried forward, subject to applicable limits.
✓ Tax-Deductible Contributions
✓ Tax-Free Qualifying Withdrawals
✓ $8,000 First-Year Participation Room
✓ $40,000 Lifetime Limit
✓ Unused Participation Room May Be Carried Forward
✓ May Be Combined With the Home Buyers’ Plan, subject to eligibility
NON-REGISTERED ACCOUNT
A non-registered account can be used to save and invest without the contribution limits that apply to registered plans. It may hold eligible investments such as segregated funds and other investment products, depending on the account and provider.
Unlike registered accounts, investment income earned in a non-registered account may be taxable. Interest, dividends and capital gains are generally reported for income-tax purposes according to the applicable tax rules.
When held through a segregated fund contract, a beneficiary may generally be named directly. This can allow the death benefit to be paid directly to the beneficiary rather than through the estate, subject to the contract and applicable provincial law.
✓ No Registered Contribution Limit
✓ Flexible Access to Funds
✓ Can Support Short- or Long-Term Investment Goals
✓ May Hold Segregated Fund Investments
✓ Direct Beneficiary Designation May Be Available with Segregated Funds
✓ Potential Estate-Planning Advantages
✓ Tax Treatment Varies by Type of Investment Income