A mutual fund is the pooling of money from many investors to invest in stocks, bonds, short-term money market instruments or other securities. You can hold a portion of these funds by purchasing units and becoming a unitholder.
In general, mutual funds offer the following advantages:
Products generally offered in the exempt market* are securities for which the issuer is not required to file a prospectus (an official reference document) with regulatory authorities.
MICA Capital acts as a dealer in the exempt market with a selection of distinctive products - such as flow-through shares, limited partnership units - available through distribution agreements established with certain issuers. These products are intended for eligible and qualified investors.
*Exempt market products are distributed by representatives of exempt market dealers registered with MICA. In some cases, they may also be distributed by a partner to whom MICA advisors will refer their clients, who will take charge of this aspect.
Private Client Services* offers high net worth individuals a full range of financial solutions and services including enhanced banking, trust and estate services, and investment management services.
Your MICA advisor can offer you the private management service through fund companies or in collaboration with our partner.
MICA does not distribute discretionary private banking products. Through our partner, for such needs, MICA advisors are able to refer their clients to this partner, who will take care of them for this aspect.
This insurance allows the insured to receive monthly benefits based on his or her income to compensate for the loss of salary following an accident or illness that renders the insured disabled.
Disability insurance allows the insured to focus full-time on recovery without financial worries.
This insurance provides for the unexpected in the event of illness or accidental injury by covering medical and other related costs.
RRSPs, RRIFs, LIRAs, RESPs, TFSAs... so many acronyms that it's easy to get confused! Are you looking to optimize your investment returns? Do you want to invest in the right plan that will allow you to control your financial risks and minimize your taxes? You've come to the right place!
At MICA Capital, a group savings and exempt market broker, our advisors are among the most qualified to guide you through the wide range of investment plans available.
At MICA Capital Inc, a group savings and exempt market broker, our advisors are among the most qualified to guide you through the wide range of investment plans available.
A mutual fund is the pooling of money from many investors to invest in stocks, bonds, short-term money market instruments or other securities. You can hold a portion of these funds by purchasing units and becoming a unitholder.
The importance of a mutual fund
In general, mutual funds offer the following advantages:
*Mutual funds are distributed through MICA Capital Inc.
Products generally offered in the exempt market* are securities for which the issuer is not required to file a prospectus (an official reference document) with regulatory authorities.
MICA Capital acts as a dealer in the exempt market with a selection of distinctive products - such as flow-through shares, limited partnership units - available through distribution agreements established with certain issuers. These products are intended for eligible and qualified investors.
*Exempt market products are distributed by exempt market dealer representatives registered with MICA. In some cases, they may also be distributed by a partner to whom MICA advisors will refer their clients, who will handle this aspect.
Private Management* offers high net worth individuals a full range of financial solutions and services, including enhanced banking, trust and estate services, and investment management services.
Your MICA advisor can offer you the private management service through fund companies or in collaboration with our partner.
*MICA does not distribute discretionary private management products. Through our partner, for such needs, MICA advisors are able to refer their clients to this partner, who will handle this aspect.
Securities* are certificates or documents that attest to your interest in the capital, assets, property or profits of a company or business. They detail your rights as a shareholder or investor, or the obligation a company has to you.
*MICA does not distribute securities such as stocks or bonds. Through our partner, for such needs, MICA advisors are able to refer their clients to this partner, who will handle this aspect.
What is a checking account?
This is an account set up to make and manage day-to-day transactions such as purchases, deposits, bill payments and fund transfers.
What is a GIC?
Guaranteed Investment Certificates (GIC) are guaranteed investment certificates issued by financial institutions. In fact, they are loans granted for a period ranging from 30 days to 10 years.
Benefits
GICs generally pay a fixed rate of interest, except for certain GICs where the interest rate may fluctuate based on a market index, for example. Although GICs must be held to term, some can be redeemed, upon request, subject to a penalty.
Interest earned on a GIC can be compounded or regular (paid periodically to the investor).
*Exempt market products are distributed by exempt market dealer representatives registered with MICA. In some cases, they may also be distributed by a partner to whom MICA advisors will refer their clients, who will handle this aspect.
RRSPs, RRIFs, LIRAs, RESPs, RDSPs, TFSAs...so many acronyms that it's easy to get confused!
Are you looking to optimize your investment returns? Do you want to invest in the right plan that will allow you to control your financial risks and minimize your tax liability? You've come to the right place!
At MICA Capital, a group savings and exempt market broker, our advisors are among the most qualified to guide you through the wide range of investment plans available.
A Registered Retirement Savings Plan is a good way to save today for your retirement. As a result, RRSPs are an excellent tax shelter for people aged 71 and under with employment income who want to make their money grow.
Accumulated principal and investment earnings will only be taxable when withdrawn from the plan.
BENEFITS
The RRSP is one of the most advantageous savings plans from a tax standpoint. What does it offer?
The Spousal Registered Retirement Savings Plan (Spousal RRSP) allows one spouse or common-law partner to contribute to the spouse-owner's retirement plan.
BENEFITS
The contributing spouse can deduct the contribution from his/her income. However, the funds may only be withdrawn by the member of the couple for whom the spousal RRSP was created.
A Group Registered Retirement Savings Plan (Group RRSP) is a plan created by an employer for the individual benefit of each participating employee. Generally, both the employee and the employer can contribute to the plan, subject to certain limits.
BENEFITS
Although employer contributions are considered taxable income to the employee, the employee will be able to obtain a tax deduction up to the maximum allowable as an RRSP, as indicated on the employee's federal notice of assessment for the previous calendar year.
As for the employer's contribution, it will be tax deductible in the same way as salary.
A locked-in registered retirement savings plan (locked-in RRSP) is created to receive funds transferred from a registered pension plan on the condition that they are used only to generate retirement income. These funds are generally locked-in, meaning they cannot be accessed until retirement.
A locked-in RRSP differs from a LIRA in that the money transferred into it must come from a federally registered pension plan.
At the appropriate time, the money in the locked-in RRSP must be transferred to a Life Income Fund (LIF) or used to purchase a life annuity from an insurance company.
BENEFITS
A locked-in RRSP allows the holder to defer taxation on investment income until the funds are withdrawn for the sole purpose of providing lifetime retirement income.
Through the Registered Disability Savings Plan (RDSP), people with disabilities and their families can save for the long-term financial security of a person eligible for the Disability Tax Credit (DTC). In addition to the contributions made to the RDSP, beneficiaries can receive up to $90,000 in grants, supporting the financial independence of people with disabilities.
Grants are tax-sheltered as long as they remain in the RDSP.
BENEFITS
If you are the parent or legal representative of a minor with a disability, or if you are an adult with a disability, the RDSP is an advantageous savings plan for you. What does it allow?
This is a non-registered savings account in which money is deposited by the holder (individual or corporation) in order to make investments through various financial products.
This type of account is subject to the tax rules applicable in Canada and Quebec regarding the taxation of income, dividends and capital gains generated by the investments held in the account. This type of account allows you to invest amounts that you expect to need in the short, medium or long term.
The Tax-Free Savings Account (TFSA) is a unique and flexible savings account that allows you to grow your savings tax-free for a personal project. Why flexible? Because you can withdraw money from the plan whenever you want without having to pay tax on it.
BENEFITS
The TFSA is, after the RRSP, the most advantageous instrument created by the Canadian government to encourage personal savings. What does it allow you to do?
A locked-in retirement account (LIRA) is designed to receive funds from a registered pension plan. Generally "locked-in" (unless otherwise provided), the funds allow the owner to defer taxation on investment earnings until the funds are withdrawn to provide lifetime retirement income. At the appropriate time, the money in the LIRA must be transferred to a Life Income Fund (LIF) or used to purchase a life annuity from an insurance company.
BENEFITS
Investing in a LIRA allows you to control your investments until age 71. Unlike an RRSP, the amounts accumulated in a LIRA are locked-in and can usually only be withdrawn at retirement, or before, under certain specific conditions stipulated by law.
The Individual Pension Plan (IPP) is a defined benefit plan designed for one person. Unlike an RRSP, the amount of benefits payable at retirement is predetermined, not the amount of contributions allowed.
The annual contribution amount is determined by an actuary based on various factors, such as age and income. An IPP generally offers the opportunity to contribute more tax-deductible amounts than an RRSP.
BENEFITS
All IPP contributions and plan administration fees are tax deductible. No employee contribution is required.
For business owners or executives whose income requires a more optimal tax deferral strategy, an Individual Pension Plan (IPP) can be a very interesting option.
Are you a parent, grandparent, uncle, aunt or godparent who cares about a child's future? The Registered Education Savings Plan (RESP) allows you to accumulate funds for the sole purpose of financing your child's post-secondary education.
The money accumulated in an RESP will cover tuition fees as well as all expenses related to education: housing, school supplies, food, transportation, etc.
BENEFITS
An RESP is to education what an RRSP is to retirement: your investments are tax-sheltered until you withdraw them. However, RESP contributions are not tax-deductible. What does it allow you to do?
The Voluntary Retirement Savings Plan (VRSP) is designed specifically for SMEs that do not already have a group retirement savings plan in place at work.
Unlike an RRSP, a VRSP pools the savings of several workers, which allows for economies of scale in management fees.
In Quebec, an employer is required to establish a VRSP if it does not already offer a workplace retirement savings plan and has a defined number of eligible employees.
BENEFITS
If you are self-employed or an individual who wants to save for retirement, the VRSP may be a wise solution for you. What does it allow?
The Registered Retirement Income Fund (RRIF) is an extension of the RRSP. It allows you to dispose of savings accumulated during your working life. The RRSP must be converted into a RRIF by December 31 of the year in which you turn 71.
BENEFITS
A RRIF allows you to withdraw money periodically while your capital continues to grow tax-free. What does allow you to do?
A Life Income Fund (LIF) is an extension of a Locked-In Retirement Account (LIRA) after retirement.
Almost identical to the Registered Retirement Income Fund (RRIF), the LIF differs only in the source of the funds and the maximum annual income payment.
BENEFITS
The money accumulated in your pension plan and transferred to a LIF can be withdrawn periodically to live comfortably for the rest of your life. Only withdrawals are taxable.
The First-Time Home Buyer's Tax-Free Savings Account is dedicated to saving for the purchase of a first home. The TFSA-FPSA combines the advantages of a TFSA and an RRSP to save for your down payment. Your contributions reduce your taxable income.
BENEFITS
The TFSA contribution deadline is December 31 of each year.
