At Camlife Financial, we help you choose an investment strategy that is specific to your needs. We take into consideration your life goals and circumstances. Before deciding on your investment strategy and determining your asset allocation, we make sure we understand your investment horizon and long-term financial goals. Your money needs to keep working for you far into the future, and beyond your retirement. We will do the work to project your long-term cash flow, and revisit this and then revise as needed periodically.
In addition, we will find out what your investment return requirements are in order to determine how conservative or aggressive your investment strategy needs to be. Also importantly, we will find out what your risk tolerance is. The higher the return you wish for, the more risk you must take.
Furthermore, we make sure we fully understand your tax situation now and in the future. We can work with your accountant or work with our accounting advisors to ensure we choose the most optimum investment vehicles for your tax situation. We cannot predict the market 100%, but we certainly can predict your taxes and save you a whole lot of money for using the best investment strategy for your tax situation.
It is very true that capital (investments) and not income makes you rich. Investment is defined as putting capital into an asset with the expectation of a positive return. Real estate, factories, stocks, bonds, funds, GICs and even the employees of a company could all be considered investments. Camlife Financial offers funds composed of stocks and bonds, GICs, high rate savings accounts and some real estate based investments. Please note that RRSPs, TFSAs and RESPs are NOT investments themselves but rather a tax status as determined by Canada Revenue Agency (CRA).
Most everyone knows that a GIC is a guaranteed investment certificate, also known as a term deposit or certificate of deposit (CD) in the USA. The interest rate is fixed and guaranteed for a fixed term. There is virtually no risk with these investments. We offer GICs from major financial institutions that are comparable to the banks. One advantage that we can offer which banks cannot is tax efficient GICs. Some of our GICs, (those with insurance companies) accrue interest that is eligible for the pension tax credit thereby, minimizing taxes.
Investment funds are low cost, market based, professionally managed investment vehicles. They are comprised of stocks, bonds and other financial instruments. An investor can get in or out of funds at any time. They offer a high degree of diversification that would typically not be available to the average individual.
Segregated funds are mutual funds offered by insurance companies. They have all the advantages of other investment funds described above along with other advantages that can only be offered by insurance companies. Notably, segregated funds can achieve probate bypass (see our article on estate planning), have 100% death benefit guarantees and provide an income (like an annuity) for life.
Guaranteed minimum withdrawal segregated funds
Some segregated funds have growth and income guarantees. These policies usually form the cornerstone of our clients’ retirement plans and we use them to create pensions. Prior to drawing an income, (this usually but does not always coincide with retirement) a minimum income growth rate of 5% is guaranteed. Once the income phase is entered, (the investment is being drawn upon for income) a further guarantee of an income for life is guaranteed. The percentage varies depending on age.
Annuities are pensions that are purchased from an insurance company. They are very straight forward. An investor deposits a fixed amount of money with an insurance company and the insurance company guarantees a certain income level for life. This can be an option to maximize income but one must be aware that unlike a segregated fund, once an annuity is purchased, in most cases the capital is no longer accessible.
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Camlife Financial…………….fostering prosperity and peace of mind.
Mutual funds and/or approved exempt market products are offered through Investia Financial Services Inc. (“Investia”). Mutual funds and exempt market products are sold exclusively by Representatives who are licensed by provincial regulators and registered with Investia.
Commissions, trailing commissions, management fees and other expenses may be associated with mutual fund/exempt market product investments. Please read the Fund Fact or prospectus carefully before investing. Mutual fund and exempt market product investments are not guaranteed, their values change frequently, and their past performance may not be repeated.
Segregated fund products are offered through Investia Financial Services Inc. and/or multiple carriers.
Subject to any applicable death benefit guarantee, any part of the premium or other amount that is allocated to a segregated fund, is invested at the risk of the policy owner and may increase or decrease in value according to the fluctuations in the market value of the assets of the segregated fund.
Guaranteed Investment Certificates (GICs) are offered through Investia Financial Services Inc. and/or multiple carriers.