INVESTMENT PLANNING

 


EQUITIES

Equities are pieces of a company, also known as "stocks." When you buy stocks or shares of a company, you're basically purchasing an ownership interest in that company. A company's stockholders or shareholders all have equity in the company, or own a fractional portion of the whole company. They buy the stocks because they expect to profit when the company profits. Companies issue two basic types of stock:

  • Common and Preferred Shares
  • Fixed Income Investments



  • FEE-BASED INVESTING

    Fee-Based & Managed Programs
    BMO Nesbitt Burns offers a selection of managed and fee-based investment programs. These meet the specialized needs of investors who want greater investment flexibility and freedom or seek portfolio management on their behalf.




    MANAGED ASSETS

    A customized and sophisticated approach to investing. They are professionally managed, discretionary portfolios where the investor owns the underlying securities. Most full-service brokerage firms in Canada have an Asset Management program, which offers clients institutional-quality investment management. The transparency of the holdings and the ability to customize portfolios gives clients more visibility and control within their accounts.




    MUTUAL FUNDS

    A mutual fund is an investment that pools your money with that of other investors to purchase a portfolio of individual investments. The mutual fund units you buy represent your share of the fund's investment portfolio. Each fund is managed according to its investment objectives. Mutual funds offer many advantages, including:

  • Ease of investing
  • Professional management by investment experts
  • A wide selection of investments to meet all your needs
  • Diversification potential to maximize return potential and manage risk
  • The ability to buy and sell most funds on any business day



  • SEGREGATED FUNDS

  • RESP
  • RRSP
  • TFSA
  • RRIF
  • LIRA
  • DPSP



  • RETIREMENT INCOME FUND

    You can think of a Registered Retirement Income Fund (RRIF) as an extension of your Registered Retirement Savings Plan (RRSP). Your RRSP is used to save for your retirement while a RRIF is used to withdraw income during your retirement.
    RRIFs are similar to RRSPs in several respects. Each allows for tax?deferred growth, offers several investment options and are government regulated. A major difference between an RRSP and a RRIF is that with an RRSP, you can make annual contributions as long as you have earned income and contribution room available. Withdrawals are optional and will be taxed. With a RRIF, contributions are not allowed and you must make minimum mandatory withdrawals each year.




    RRSP

    Whatever your age or personal situation, it's never too late to take advantage of the benefits a Registered Retirement Savings Plan (RRSP) can offer. It is important to understand RRSP basics to ensure you choose the right investment options for your RRSP.
    An RRSP is a personal savings plan that allows you to save for the future on a tax-sheltered basis.




    EDUCATION SAVINGS

    Education is the key to your children's future. But it's costly - currently as much as $60,000* for a four year degree at a Canadian university.

  • A Registered Education Savings Plan (RESP) is a smart way to maximize education savings
  • Tax-sheltered investment growth and eligibility for government grants can make a big contribution to your child's future
  • By 2021 that degree is likely to cost over $100,000**
  • Provide for your children's education and keep on top of rising costs with a BMO Bank of Montreal Registered Education Savings Plan (RESP) or other investment options
  • Calculate education costs and savings needs with our Education Savings Calculator



  • REGISTERED DISABILITY SAVINGS PLAN (RDSP)

    A Registered Disability Savings Plan (RDSP) offers benefits that are too good to ignore. Created by the federal government, the RDSP provides people with disabilities with an easy and effective way to save and invest for their long-term financial security. What's more, the government offers incentives in the form of grants and bonds to help you accumulate more. If you are a person with a disability or provide care to someone with a disability, you'll definitely want to know more about RDSPs.




    TAX-FREE SAVINGS ACCOUNT (TFSA)

    A Tax-Free Savings Account (TFSA) is a great way to save without worrying about taxes eating away at your investment profits. You can save and invest up to $5,500 a year without paying tax on any earnings that may accrue. You can use a TFSA to enhance your overall financial plan and help you save for both long and short term goals.??See the difference tax-free compounding makes with our TFSA Calculator.