Customplan Financial

Investments

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Mutual Funds

Mutual Funds – they pool the investments of many individuals together into one big fund. Professional investment managers invest the money following an investment policy established for that particular fund. These include bond funds, equity funds, and treasury bills. A mutual fund portfolio can be designed to suit the individual’s investment objectives.

For more information please contact us at (604) 687-7773 or email solutions@customplanfinancial.com

Mutual funds products are offered through Investia Financial Services Inc. and Peak Investment Services Inc..

Commissions, trailing commissions, management fees and other expenses may be associated with mutual fund investments. Please read the Fund prospectus carefully before investing. Mutual fund investments are not guaranteed, their values change frequently, and their past performance may not be repeated.

GIC Term Deposits

GIC/Term Deposits - offers a guaranteed rate of return over a fixed period of time, most commonly issued by trust companies or banks. Due to its low risk profile, the return is generally less than other investments such as stocks , bonds , or mutual funds . GIC’s can be Registered or Non Registered, and come in many forms, from conventional term deposits to market investments. GIC's regularly have life spans of 1, 2, 3, 4, or 5 year terms. At maturity they can be cashed as taxable income or renewed for another term. Usually, regular term deposits for financial institutions carry an interest rate from 1-5% pending on the various factors, such as the length of the term and specified interest rates from the Bank of Canada.

For more information please contact us at (866) 253-0030 or email GICBC@customplanfinancial.com to get a current Top Rate summary.

Guaranteed Investment Certificates (GICs) are offered via brokerage through Investia Financial Services Inc, PEAK Investments, GIC Direct, and/or multiple carriers.

Segregated Funds

Segregated Funds – sold by life insurance companies, a segregated fund is similar to a mutual fund but has unique feature, such as the guarantee of all or part of the principal. If the fund loses value because of poor market performance, you get part or all of your original capital back but only if you keep the fund for a specific period of time, typically ten years. Segregated funds offer the possibility of protection from creditors. They are held separately from the insurance company's other assets.

For more information please contact us at 604.687.7773 or email us at solutions@customplanfinancial.com

Segregated funds products are offered through Customplan Financial Advisors, Investia, PEAK Investments, and/or multiple carriers.

Annuities

Annuities - An annuity contract is financial product, typically offered by a financial institution that may accumulate value and take a current value and pay it out over a period of years.

For more information please contact us at at (604) 687-7773 or email solutions@customplanfinancial.com

Insurance products are provided through multiple insurance carriers.

Individual Pension Plan

Individual Pension Plan: A defined benefit pension plan for one person. An IPP is typically most appropriate for key executives of an organization, self-employed professionals or owner-managers. It provides all the benefits permitted under the Income Tax Act of Canada in order to maximize tax-sheltered retirement savings.

For more information please contact us at at (604) 687-7773 or email solutions@customplanfinancial.com

Life Income Fund

Life Income Fund: A Life Income Fund (LIF) is an investment vehicle used in retirement. Once funded by converting a LRSP or LIRA, a LIF allows for periodic withdrawals while the remaining balance remains tax deferred. The withdrawals have a specified minimum and maximum, depending on age.

For more information please contact us at at (604) 687-7773 or email solutions@customplanfinancial.com

Group RRSP

Group RRSP: A Group RSP enables employees of a company to save for retirement by contributing to an RRSP through payroll deductions and receiving a tax break every pay at source.

For more information please contact us at at (604) 687-7773 or email solutions@customplanfinancial.com

Locked In Retirement Savings Plan

Locked In Retirement Savings Plan – A LRSP or Locked In Retirement Account (LIRA) originates from Registered Pension Plans. It is typically the result of termination of employment. Investment growth is not taxed as it is earned.

For more information please contact us at at (604) 687-7773 or email solutions@customplanfinancial.com

Pensions

Pensions - is a steady income given to a person. Pensions are typically payments made in the form of a guaranteed annuity to a retired or disabled employee. Some retirement plan designs accumulate a cash balance (through a variety of mechanisms) that a retiree can draw upon at retirement, rather than promising annuity payments. In either case, a pension created by an employer for the benefit of an employee is commonly referred to as an occupational or employer pension. Labor unions, the government, or other organizations may also fund pensions. Occupational pensions are a form of deferred compensation , usually advantageous to employee and employer for tax reasons. Many pensions also contain an insurance aspect, since they often will pay benefits to survivors or disabled beneficiaries, while annuity income insures against the risk of longevity.

For more information please contact us at at (604) 687-7773 or email solutions@customplanfinancial.com

Registered Education Savings Plan

Registered Education Savings Plan – is a special trust arrangement, it is not subject to trust rules in the Income Tax Act. It must be terminated by the end of the year that includes the 25th anniversary of the particular plan. Contributors can be made during the first 22 years of the plan's existence. There are two types, family and individual.

For more information please contact us at at (604) 687-7773 or email solutions@customplanfinancial.com

Registered Retirement Income Fund

Registered Retirement Income Fund: A Registered Retirement Income Fund (RRIF) is an investment vehicle used in retirement. Once funded by converting an RRSP, the RRIF allows for periodic withdrawals while the remaining balance remains tax deferred. The withdrawals have a specified minimum, depending on age, and now maximum.

For more information please contact us at at (604) 687-7773 or email solutions@customplanfinancial.com

Registered Retirement Savings Plan

Registered Retirement Savings Plans – RRSP’s are personally managed savings plans with tax assistance, contributions are tax deductible and investment growth is not taxed as it is earned. Tax is paid when funds are withdrawn from these plans. Anyone with an earned income is eligible to contribute to an RRSP, prior to their 72nd year.

For more information please contact us at at (604) 687-7773 or email solutions@customplanfinancial.com

Tax Free Savings Account (TFSA)

Tax Free Savings Account or TFSA is an account that provides tax benefits for saving. Contributions to a TFSA account are not deductible for income tax purposes but investment income, including capital gains, dividends and interest earned in a TFSA are not to be taxed while invested nor is there any tax implication upon withdrawal

TFSA is an investment option for individuals wanting to save for the future. The flexible structure in TFSA allows the holder to be able to withdraw money from the account any time free of taxes. The allocations into the account are non-deductible; however this represents a lucrative opportunity for individuals with left-over income to invest in a saving vehicle, without the pressure of time constraints. TFSA account also alleviates the burden of the capital-gain tax, which means the interest-income will be able to compound tax-free. In essence, the account holder can withdraw any amount out of the account, free from capital gains and/or withdrawal taxes.

One mechanism in the design of the TFSA is the carry-over aspect. Any unused space under the $5,500 cap can be carried forward to subsequent years, without any upward limit. The TFSA also allows income splitting to an extent, because a higher earning spouse can contribute to the TFSA of a lower-earning spouse.

The tax treatment of a TFSA is the opposite of a Registered Retirement Savings Plan (RRSP). There is a tax deduction for contributions to an RRSP, and withdrawals of contributions and investment income are all taxable. In comparison, there will not be any tax deduction for contributing in a TFSA, in addition there is no tax on withdrawals of investment income or contributions from the account.

Up to $10,000 per year can be placed into a TFSA. This money can then be withdrawn at any time without incurring a penalty. Unlike an RRSP, which must be withdrawn after the holder turn 71, the TFSA does not have an expiry date. The contribution room for funds withdrawn from a TFSA is then reallocated in the tax year after the withdrawal, unlike an RRSP, where contribution room is permanently reduced once a contribution is made.

For more information please contact us at at (604) 687-7773 or email solutions@customplanfinancial.com