Investing basics
How investing works, explained for education only.
This page explains general ideas. It does not recommend any investment, product or strategy, and it does not promise any return. David is licensed for life and accident and sickness insurance only. He does not hold a securities, mutual fund or other investment licence.
Risk and time
Investments can go down as well as up. Your time horizon, when you will need the money, and how much loss you could accept are central to any decision.
Registered accounts at a glance
A TFSA lets investment growth and withdrawals stay outside income tax, within annual contribution room. An RRSP can reduce taxable income when you contribute, and withdrawals are generally taxed. An RESP is a savings plan for a child's post-secondary education.
Rules, limits and eligibility change. Check canada.ca for current details.
Fees matter
Fees and costs reduce what you keep over time. Ask any advisor how they are paid and what each cost is.
Questions to ask any advisor
- Are you licensed, and which products are you licensed to discuss with me?
- How are you paid, and what will I pay?
- What are the risks, and what happens if the value falls?
