INVESTMENTS

> Term Deposits and GICs

 

A Term Deposit may be the ideal investment for you if you have a large savings account and rarely make withdrawals. Term Deposits and Guaranteed Investment Certificates (GICs) provide a higher earning interest than a regular savings accounts. GICs and Term Deposits can help you make the most of your money without having to make a large financial commitment.

 

GICs and Term Deposits are non-registered investments that do not have the same tax benefits as registered RRSP investment accounts.

 

Features

 

• Term Deposits and GICs provide a fixed rate of return for a specific term.

• Both your original investment and interest payments are guaranteed.

• We offer short and long terms ranging from 30 days to 5 years.

• Investment is protected under the Deposit Insurance Corporation of Ontario for up to $100,000 per account holder.

 

Options

 

• Non-redeemable Term Deposits and GICs – Funds are locked in and cannot be redeemed until the maturity date.

• Redeemable Term Deposits and GICs – Funds may be redeemed before the maturity date, but are subject to an interest penalty.

 

Interest Rate

 

• Interest is paid monthly, annually or at maturity, depending on the option you have chosen.

 

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>  RRSP

 

Registered Retirement Savings Plans (RRSPs) are one of the most popular choices for long-term investment plans. The reason many people choose RRSP's are:

 

• Investments to your RRSP are tax deductible, within limits set by the Income Tax Act.

• Your RRSP investments are tax sheltered which allow your savings to grow faster.

• Generally speaking, you only withdraw the funds when you’re retired and are more likely to be in a lower tax bracket than when you are working.

 

Contributions

You can make lump-sum contributions directly to your RRSP at any time of the year.

 

Registered Investment Options

We offer access to a variety of RRSP investment options to suit your needs and goals.

 

• Fixed-rate plans – The rate of return on your retirement savings is guaranteed for the term you choose. You may choose redeemable or non-redeemable plans.

• RSP Savings Plan - No initial lump sum payment is required. Deposit automatically biweekly, weekly or monthly from your bank account.

• Mutual funds * – We offer ethical mutual funds. Credit union advisors are registered as Mutual Funds Investment Specialists through Credential Asset Management Inc.

 

Contact your Saugeen Community Credit Union advisor for more details about investing into RRSP's.

 

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>  RRIF

 

A Registered Retirement Income Fund (RRIF) provides you an income at retirement. Although you may set up a RRIF at any age, it is mandatory at age 71 when your RRSPs mature.

 

Using the funds accumulated in your RRSP or registered pension plan an RRIF provides you with a regular stream of income, subject to a minimum annual amount. A benefit to an RRIF is that you’re able to minimize taxes by spreading your RRIF income over a number of years. In addition, the money that remains in your RRIF continues to grow tax-sheltered – just as it did in your RRSP.

 

Features

 

• You pay tax only on the actual amount of RRIF income you receive each year.

• You choose the amount and the frequency of your payments, as long as the total for each year is at least equal to the mandatory minimum amount.

 

Investment Options

 

We offer a variety of RRIF investment options to suit your needs and goals.

 

• Fixed-rate plans – The rate of return on your retirement savings is guaranteed for the term you choose. You may choose redeemable or non-redeemable plans.

• Mutual funds * – We offer ethical mutual funds. Credit union advisors are registered as Mutual Funds Investment Specialists through Credential Asset Management Inc.

 

Contact your Saugeen Community Credit Union advisor for more details about investing into RRIF's.

 

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>  TFSA

 

Tax Free Savings Accounts are available to all Canadian residents 18 years of age or older who have filed a tax return and have a valid Social Insurance Number.

 

Investment Options

 

• Term Deposits

• Mutual Funds

• Savings Accounts

 

Deposits made to the TFSA

 

• You can deposit a maximum of $5000.00

• Deposits to the Tax Free Savings Account will not be deducted from your income on your income tax return and the interest you earn will not be taxed.

• If you don't make the maximum deposit you don't lose the deposit room. The unused deposit room gets carried over to the following year. There is no limit to how much can be carried forward.

• Each year, Canada Revenue Agency will determine the available Tax Free Savings Account deposit room. Unused deposit room will be reported on the annual Notice of Assessment.

 

Withdrawing from a TFSA

 

• Withdrawals do not affect federal income-tested benefits and credits (e.g. OAS, GIS, EI, GST, age credit, Child Tax Benefit, Working Income Tax Benefit, and age benefit).

• Withdrawals will increase unused deposit room after the year of withdrawal.

• Withdrawals are non-taxable.

 

Beneficiary or Successor Holder

 

The TFSA Holder May Appoint:

 

• Spouse/common-law partner as successor holder. On the death of the Holder, spouse/common-law partner will become the Holder of the Tax Free Savings Account.

• Someone other than the spouse/common-law partner as the beneficiary. On death of the Holder, proceeds of the Tax Free Savings Account will be paid to the beneficiary.

 

For more information, visit the Government's Tax-Free Savings Account information page online at http://www.tfsa.gc.ca/

 

If you have any questions, please contact the Saugeen Community Credit Union advisor.

 

*Information about the Tax-Free Savings Account is based on what is currently available from the Canadian Government.

 

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>  Spousal RRSP 

 

If one spouse earns more than the other or is anticipating a higher retirement income contributions can go into a spousal plan in your spouse’s name instead of your own.

 

With a spousal RRSP, you get the tax deduction for your contributions (if the funds are not withdrawn during the first three years). Contributions to a spousal RRSP do not affect your spouse's contribution limit to his or her own RRSP plan.

 

When your spouse reaches retirement and begins to withdraw the funds, the amount will be taxed at your spouse’s lower tax rate.

 

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>  Mutual Funds

 

 

Credential Asset Management Inc. is the national credit union system’s mutual fund dealer. Through our partnership with Credential® Asset Management, we offer our members access to a wide range of high-performing mutual funds for their RRSPs , RRIFs, TFSAs and RESPs as well as non-registered investment plans.

 

Credential Asset Management Inc. offers mutual funds from leading fund companies such as The Ethical Funds Company® (Canada’s most comprehensive family of socially responsible mutual funds).

 

Speak with a Saugeen Community Credit Union registered mutual fund investment specialist about setting up a Mutual Fund investment strategy that suits your needs and goals.

 

 

 

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>  Online Brokerage* *

 

 

 

Take advantage of the power of online trading when you sign up with Credential Direct®.

 

Credential Direct gives you access to the same products and services as major online brokerages. You can trade stocks on all Canadian and US exchanges, invest in over 1,800 Canadian mutual funds, choose from a full range of fixed income investments and more.

 

Learn more about Credential Direct®

 

Open an account with Credential Direct®

 

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* Mutual funds are offered through Credential Asset Management Inc. Commissions, trailing commissions, management fees, and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Unless otherwise stated, mutual fund securities and cash balances are not covered by Canada Deposit Insurance Corporation or by any other government deposit insurer that insures deposits in credit unions. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated.

 

®Credential is a registered mark owned by Credential Financial Inc. and is used under license.

 

®Ethical Funds is a registered mark owned by Northwest & Ethical Funds Investments L.P. and is used under license.

 

Ethical Funds® are sold in all provinces and territories across Canada.

 

** On-line brokerage is offered through Credential Direct®, a division of Credential Securities Inc, which operates as a separate business unit. Commissions, trailing commissions, management fees, and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds and other securities are not guaranteed, their values change frequently, and past performance may not be repeated. Credential Securities Inc. is a Member-CIPF. ®Credential, Credential Securities and Credential Direct are registered marks owned by Credential Financial Inc. and are used under licence.