Erickson Credit Union Logo
your community credit union

Investment Accounts

Tax-Free Savings Account, Registered Retirement Savings Plans, Mutual Funds, Qtrade Investor Online Brokerage, Registered Retirement Income Fund, Registered Education Savings Plan, Canada Savings Bonds, Term Deposits, AgriInvest, LIRA/LIF, Investment Dictionary

Tax-Free Savings Account

TFSA allows taxpayers to set money aside in eligible investment vehicles and watch those savings grow tax-free throughout their lifetime. There are no restrictions on the way the funds may by used.
  • The TFSA is available to Canadians 18 years of age and older
  • Investment income earned in the account is not taxed
  •  Each year, beginning in 2009, maximum contribution limits were $5,000. In 2013 the contribution room was adjusted to $5,500. Briefly in 2015, the deposit limit was raised to $10,000 but in 2016, the limit was reduced again to $5,500. Total contribution room since Tax Free Savings Accounts became available and to the end of 2017 is $52,000.
  • Unused contribution room can be carried forward indefinitely
  • You can withdraw funds from the TFSA at any time for any purpose although transfers or withdrawals may be restricted based on selected investment terms.
  • While contributions are not tax-deductible, tax-free withdrawals can be made anytime.
  • Any withdrawals from the plan add to future contribution room in the following year, letting you replace whatever you withdrew.
  • Neither income earned in a TFSA nor withdrawals will affect your eligibility for federal income-tested benefits and credits, such as the Guaranteed Income Supplement and the Canada Child Tax Benefit.
  • Contributions to a spouse’s TFSA are allowed and TFSA assets can be transferred to a spouse upon death.
For additional TAX FREE SAVINGS INFORMATION follow the following link:
www.rpsuccess.ca/presentations/TFSA%20Contribution%20Room/player.html
 

Caution

Your designation of beneficiary by means of designation form will not be revoked or changed
automatically by any future marriage or divorce. Should you wish to change your beneficiary in the
event of a future marriage or divorce,
you will have to do so by means of a new designation.
 

Registered Retirement Savings Plans

Erickson Credit Union offers RRSP's which are easy to understand. These plans also provide investment flexibility and are secure. A Registered Retirement Savings Plan is a tax sheltered savings plan that allows a tax break now, and allows you to tax shelter contributions and interest to provide an income for future years. Each dollar you contribute (subject to Canada Revenue Agency's limits) to your RRSP gives you a tax deduction for the same amount, reducing your taxable income. When you take money out of your RRSP, it is then treated as taxable income, but you control when and how much you take out.

Fixed Term RRSP Features

  • $500 Minimum deposit
  • Interest Compounded annually
  • Term of 1 to 5 years
  • Non-redeemable prior to maturity
  • Highly competitive rates

Variable RRSP Savings Features

  • No minimum deposit
  • No penalties for early withdrawal
  • Rate of interest varies with current rates
  • Interest compounded and paid every June and December
  • Automatic deposits free of charge
  • May be transferred to a fixed plan at any time

Caution
Your designation of beneficiary by means of designation form will not be revoked or changed automatically by any future marriage or divorce. Should you wish to change your beneficiary in the event of a future marriage or divorce, you will have to do so by means of a new designation.

 

Mutual Funds*

Erickson Credit Union is committed to providing our members access to a wide range of financial services. This commitment includes offering a choice of investment options suited to your individual needs. Today, more and more people are turning to mutual funds as a way to save for the future.
Stop in and talk to a Mutual Funds Investment Specialist, about how you can purchase our mutual fund options for your investment portfolio, and how to transfer your portfolio to Credential Asset Management.
 

About NEI Investments

NEI Investments makes excellent, independent portfolio managers accessible to Canadian investors through two award-winning fund families: Northwest Funds and Ethical Funds. Our truly active management approach and our relentless focus on risk management are designed to deliver unique investments that outperform in the long term and provide peace of mind to investors.
NEI Investments is also home to Canada's leading team of socially responsible investing specialists who provide environmental, social and governance analysis for Ethical Funds, the number one socially responsible mutual fund family in the country.

Investment Solutions

Every investment product offered by NEI is committed to producing outstanding long-term performance and high-end risk management. We engage some of the best, most forward looking investment managers in the industry today. These managers are chosen through a rigorous selection process and managed through ongoing monitoring, NEI Investments provides investors with a wide selection of stand-alone funds and managed solutions covering all major asset classes, investment styles and geographic regions.

  • Northwest Funds
  • Ethical funds
  • NEI Select Portfolios

For more information, visit us at NEIinvestments.com
 

 

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

Qtrade Investor Online Brokerage

We are pleased to partner with Qtrade Investor - Canada’s leading independent online brokerage.
Whether you currently use an online broker or are interested in doing so, Qtrade Investor is our online brokerage of choice. Qtrade Investor offers you, among other things:
  • #1 online broker in Canada by The Globe and Mail for the past four consecutive years.
  • A full range of investments including stocks, options, and fixed income securities.
  • Comprehensive investment tools and research, news, real-time quotes, portfolio watch lists, email alerts and more.
  • Low trading commissions.
  • Easy electronic funds transfer to and from your chequing account.
For more information or to open an account:
Click here to login to Qtrade Investor accounts now
Qtrade Investor is a division of Qtrade Securities Inc., Member of the Canadian Investor Protection Fund

Registered Retirement Income Fund

In the calendar year that you turn 71 years of age, you MUST close out your RRSP’s or convert them into a RRIF or alternative investment vehicle. RRIF's allow you to preserve the tax-deferred status of your RRSP investments and take the funds out slowly over your retirement years in order to lower the total amount of tax paid.
  • Monthly, quarterly, semi-annual or annual payments directly into your account.
  • No fees
  • Investment options include variable rate & fixed rate term deposits.
We can tailor an investment product to meet your needs and provide you with the comfort level that allows you to enjoy your retirement without worrying about your investments.

Caution

Your designation of beneficiary by means of designation form will not be revoked or changed
automatically by any future marriage or divorce. Should you wish to change your beneficiary in the
event of a future marriage or divorce,
you will have to do so by means of a new designation.
 

Registered Education Savings Plan

A Registered Education Savings Plan (RESP) is a government approved plan for the purpose of providing post-secondary education funding for a beneficiary. Income earned within the plan is not taxed until it is withdrawn.
  • Increase your earnings with a minimum Canada Education Savings Grant of 20% on the first $2500.00 in annual Registered Education Savings Plan contribution
  • Allows contributions to grow by compounding in a tax sheltered environment until withdrawn
  • Withdrawals are made in the name of your beneficiary, spread over a number of years. Your beneficiary pays little, if any, income tax at their marginal tax rate (which is usually lower)
  • Fixed rate deposits are available

Canada Savings Bonds

Canada Savings Bonds are available at Erickson Credit Union. Interest rates and terms are announced during the sales period, typically in October to December annually.

Term Deposits

You can count on credit union Term Deposits to earn competitive interest rates. Plus, you'll enjoy peace of mind knowing your investment is solid and secure. We can work with you to determine the amount and frequency of your deposits and help you select the terms that suit you best...
  • Terms between 1 and 5 years
  • Interest calculated daily and paid on the anniversary date of the term

Redeemable Term Deposits

Minimum of $500.00 deposit ($100.00 for HEADSTART® or FAT CAT® accounts)
  • Penalty for early redemption, varying with the remaining term.
  • Automatic renewal and compound interest available

Non Redeemable Term Deposits

  • Our highest rates of interest are paid on these term deposits
  • Minimum of $500.00 deposit ($100.00 for HEADSTART® or FAT CAT® accounts)
  • Automatic renewal and compound interest available

AgriInvest

AgriInvest helps producers manage small income declines.  Each year, producers can make a deposit into an AgriInvest account, and receive a matching contribution from federal and provincial governments.
When you open your new AgriInvest account, we will notify Agriculture and Agri-Food Canada (AAFC) that you’ve opened an account, and any existing AgriInvest funds will be transferred to your new account. Moving your accounts closer to where you live and work gives you the flexibility to keep track of your funds easily and to earn a competitive rate of interest on your deposits.

LIRA/LIF

Locked In Retirement Accounts hold money moved out of a pension plan. You may use one if you are changing companies and taking your pension savings with you. It works like an RRSP, but your money is locked in. You cannot withdraw the funds until you retire.
Life Income Funds are used to hold pension funds and LIRA funds, and eventually payout retirement income. The life income fund (LIF) cannot be withdrawn in a lump sum; rather, owners must use the fund in a manner that supports retirement income for their lifetime. Each year's Income Tax Act specifies the minimum and maximum withdrawal amounts for LIF owners.

Investment Dictionary

A
Advisory services
Annuitant
Annuity
Asset
Asset mix
B
Balance sheet
Bankers' acceptance
Beneficiary
Blue chip stock
Bond
Book value
Budget
Bullion
C
Canada Savings Bonds (CSBs)
Capital appreciation (gain or loss)
Capital risk
Cash flow
Cash instruments
Certificate
Codicil
Commission
Commodities
Commodity market or commodity exchange
Common stock
Compound interest
Coupon
D
Dealer or investment dealer
Debt instruments
Deduction limit
Deferred Profit Sharing Plan (DPSP)
Defined Benefit Plan
Defined Contribution Plan
Discount broker
Discretionary portfolio management
Diversification
Dividend
E
Earned income
Effective yield
Equity investments
Estate
Executor/Executrix
Expenses
F
Financial planning
Foreign content restrictions
Full-service broker
Futures contracts
Futures market
G
Guaranteed Investment Certificate (GIC)
H
Historical yield
I
Income
Income-splitting
Indexing
Interest
Interest rate
Intestate
Investment advisor
Investment certificate
Investment dealer
Investor
Issuer
L
Life Income Fund (LIF)
Lifetime carry-forward option
Lifetime over-contribution limit
Liquidity
Liquidity risk
Loan
Locked-In Retirement Account (LIRA)
M
Margin account
Maturity
Money market instruments
Mutual fund
N
Net worth
Non-registered investments
O
Option
Overdraft
Overdraft protection
Overdrawn
P
Par value
Pension adjustment (PA)
Portability
Portfolio
Portfolio manager
Posted rate
Power of attorney
Preferred stock
Prescribed annuity
Probatable assets
Prospectus
R
Rate of return risk
Real rate of return
Registered Education Savings Program (RESP)
Registered investments
Registered pension plan
Registered Retirement Income Fund (RIF)
Registered Retirement
S
Savings Plan (RSP)
Safe deposit box
Securities
Securities Commission
Self-directed RIF
Self-directed RSP
Share
Shareholder
Speculator
Spousal RIF
Spousal RSP
Stockbroker
Survivor benefits
T
Term deposit
Testator/Testatrix
Treasury bills (T-Bills)
Trustee
U
Undeducted contribution
Unused deduction room
V
Vested
W
Will
Withholding Tax
Y
Yield

Advisory services
A relationship with an investment professional which allows the investor to receive information and advice concerning specific investment opportunities. Ultimate investment decisions are made by the individual.
Back to List

Annuitant
The individual in whose name an annuity is registered and who receives the payments.
Back to List

Annuity
A financial contract that provides an individual with income payments of a specified amount at regular intervals for life, or for a specific period of time. The principal remains tax-sheltered until it is paid out as income. Annuities may be purchased with either registered or non-registered assets. In the latter instance, only the interest component is taxable.
Back to List

Asset
Anything of monetary value owned by an individual or a business. A potential source of collateral for a loan.
Back to List

Asset mix
The relative proportions of cash, debt and equity instruments in a portfolio.
Back to List

Balance sheet
A formal statement indicating the financial position of an individual or business at a specific point in time. Assets are usually listed on the left side, and liabilities on the right. Net worth, or the difference between total assets and total liabilities, is indicated at the bottom.
Back to List

Bankers' acceptance
A short-term debt instrument issued by a corporation, but guaranteed by a bank, and sold on a discounted basis.
Back to List

Beneficiary
The person designated to receive tangible assets such as the proceeds or benefits from an estate or insurance policy.
Back to List

Blue chip stock
Active, leading, well-known common stocks with a long record of profit growth and dividend payment, and a reputation for quality management, products and services.
Back to List

Bond
A certificate of a debt on which the issuer (usually a government or large corporation) pays a specific amount of interest for a specified length of time and promises to repay the loan to the holder at its maturity. Specific assets are pledged by the issuer as security for the bond.
Back to List

Book value
The original purchase price of a current investment or holding. Branch-to-branch service Also known as multi-branch banking, this service allows customers to access their funds and complete financial transactions at any branch of their bank across Canada.
Back to List

Budget
A formal estimate of future income and expenses used for financial planning.
Back to List

Bullion
Gold, silver and other precious metals in the form of ingots and bars, rather than coins with a monetary value stamped on them.
Back to List

Canada Savings Bonds (CSBs)
A savings bond sold to the public in the fall and spring of each year. There are two types: those that pay interest each year (regular interest bonds) and those that accumulate interest and pay it when the bond matures (compound interest bonds). CSBs may be either registered or non-registered.
Back to List

Capital appreciation (gain or loss)
The gain (or loss) realized on an equity investment when the asset is sold for more (less) than it was originally purchased.
Back to List

Capital risk
The risk that an investor may be unable to recover the full value of the original investment when selling it. Most often related to equity investments.
Back to List

Cash flow
The movement of cash into, through, and out of a particular entity, i.e. an individual's deposit account.
Back to List

Cash instruments
Low-risk interest-bearing investments that are highly liquid in nature. Includes instruments such as deposit accounts, government treasury bills, bankers' acceptances and commercial paper.
Back to List

Certificate
The actual document which is evidence of ownership of a stock or bond.
Back to List

Codicil
A legal instrument made subsequently to a will, modifying it. It legally becomes a part of the original will it is amending.
Back to List

Commission
The fee charged by an investment dealer or broker for buying or selling securities on behalf of a client.
Back to List

Commodities
In investment terms, raw materials or semi-finished goods such as wheat, coffee, pork bellies, copper, etc.
Back to List

Commodity market or commodity exchange
A market where commodities and futures contracts for commodities are bought and sold.
Back to List

Common stock
Securities which represent ownership in a corporation and carry voting privileges.
Back to List

Compound interest
Interest earned on both the principal and the interest it has previously earned.
Back to List

Coupon
A portion of a bond certificate entitling the holder to an interest payment of a specified amount when clipped and presented at a bank on or after its due date.
Back to List

Dealer or investment dealer
(see discount broker, full-service broker, stockbroker)

Debt instruments
Investments in which an investor loans money to a government, corporation or financial institution for a pre-determined period of time in exchange for earning a specified rate of interest on the investment. At maturity, the principal (or capital) is returned to the investor along with any unpaid interest owing.
Back to List

Deduction limit
Federally legislated, the maximum allowable amount you can contribute each year to an RSP and claim as an income tax deduction.
Back to List

Deferred Profit Sharing Plan (DPSP)
A tax-sheltered plan used by employers to build a retirement fund for employees based on a share of the company's profits. Funds can be transferred to an RSP, or used to buy a RIF or an annuity.
Back to List

Defined Benefit Plan
A company-sponsored pension plan that guarantees a certain level of pension income at retirement, calculated according to a pre-determined formula.
Back to List

Defined Contribution Plan
A company-sponsored pension plan, also known as a money purchase plan, that defines the contributions to be made by the employee and the employer. It does not, however, define the amount of pension income to be received at retirement. The accumulated value of the plan is used to purchase either a life annuity, or if the pension plan permits, a Life Income Fund (LIF).
Back to List

Discount broker
Like the full-service broker, the discount broker executes orders to buy and sell securities. Commission rates are often significantly lower than those charged by a full-service broker. A discount broker does not provide research services or advice to clients.
Back to List

Discretionary portfolio management
An investment service in which an investor's portfolio is administered entirely by a professional manager and for which an annual fee is charged. The portfolio manager assumes responsibility for all investment decisions, executes transactions on behalf of the client, and reports back to the client on a regular basis.
Back to List

Diversification
An investment strategy practised by both individual investors and mutual fund managers designed to minimize the risk of market fluctuations by investing in a variety of investment instruments in a variety of markets.
Back to List

Dividend
A portion of the company's profit that is distributed to shareholders in proportion to the number of shares they hold.
Back to List

Earned income
Income eligible for consideration when calculating your annual RSP deduction limit.
Back to List

Effective yield
Return on investment after adjusting for factors such as inflation, brokerage fees, or management/administration fees. Equity The ownership interest in any tangible asset including a company (in the form of common or preferred shares); mutual funds (in the form of units); and real estate, precious metals, artwork, etc.
Back to List

Equity investments
Investments in which the investor is considered an "owner" in the asset. Usually considered higher risk than cash or debt instruments, the rate of return on an equity investment is never guaranteed.
Back to List

Estate
All assets owned by an individual at the time of death.
Back to List

Executor/Executrix
The person or corporation appointed by an individual and named in the will to administer the estate.
Back to List

Expenses
The costs incurred to purchase specific goods or services.
Back to List

Financial planning
The process of assessing your financial situation, determining your objectives and formulating a plan to achieve them.
Back to List

Foreign content restrictions
Limitations on the amount of foreign investments you can hold in your RSP or RIF, currently restricted to 20% of the total book value of your plan.
Back to List

Full-service broker
A broker who provides a wide range of services to investors including the execution of trades, advice on which securities to buy or sell, advice on financial planning and tax shelters and on new issues of stocks. Commissions are generally higher than those charged by discount brokers. Often referred to as a "stockbroker", the term is gradually being redefined to reflect the wider range of services provided.
Back to List

Futures contracts
An agreement to buy or sell a specific amount of a specific commodity or financial instrument at a stipulated price on a particular date in the future.
Back to List

Futures market
A commodity exchange where futures contracts are traded. Different exchanges specialize in specific types of commodities.
Back to List

Guaranteed Investment Certificate (GIC)
A debt security issued by a bank or trust company for a fixed sum of money, maturing after a fixed length of time and paying a fixed rate of interest, usually higher than that paid on a premium savings account. GICs are redeemable only at maturity.
Back to List

Historical yield
Statistics published by a mutual fund company identifying the rates of return of specific funds in previous years. Designed only to provide investors with information on the historical performance of funds, historical yield is not an indication of future performance.
Back to List

Income
Total revenue and/or funds received from all sources.
Back to List

Income-splitting
A strategy which enables couples to reduce the income tax they pay at retirement. Instead of one person drawing a larger amount from a single RSP, both spouses draw smaller amounts from their respective plans.
Back to List

Indexing
Payments or benefits which are periodically adjusted to reflect the effects of inflation.
Back to List

Interest
Payments made by a borrower to an investor for the use of his or her money.
Back to List

Interest rate
The rate of return a lender receives for permitting a borrower to use money for a specified term. The interest rate is usually expressed as an annual percentage.
Back to List

Intestate
The condition of dying without leaving a valid will.
Back to List

Investment advisor
(see full-service broker)
Back to List

Investment certificate
A deposit issued by a bank or trust company that pays a fixed rate of interest.
Back to List

Investment dealer
(see discount broker, full-service broker)
Back to List

Investor
One whose principal concern in making an investment is to maximize return while minimizing risk, in contrast to the speculator who is prepared to accept greater risk in the hopes of making better-than-average profits.
Back to List

Issuer
A legal entity including corporations, municipalities, governments and investment trusts with the power to issue and distribute a security.
Back to List

Life Income Fund (LIF)
A retirement income option created for Locked-In RSPs and other registered pension plan savings to provide retirement income.
Back to List

Lifetime carry-forward option
A provision that allows you to carry forward unused RSP contribution room to future years and make up for years in which you did not contribute the maximum.
Back to List

Lifetime over-contribution limit
A non-tax-deductible contribution to an RSP which exceeds the maximum annual allowable limit set by government. Current legislation allows for a lifetime maximum over-contribution of $2,000.
Back to List

Liquidity
The degree of ease with which an investor can gain short-term access to funds held in an investment vehicle.
Back to List

Liquidity risk
The ease with which an investor can convert an investment to cash without negative impact on either capital or return.
Back to List

Locked-In Retirement Account (LIRA)
An account created from pension credits held with a former employer and transferred when the employee leaves the organization. These funds can be used to purchase a Life Income Fund (LIF), a Life Retirement Income Fund (LRIF) in Alberta, Saskatchewan and Manitoba only, or a life annuity.
Back to List

Margin account
A brokerage account which permits investors to buy securities with money borrowed from the broker. The brokerage firm has the right to demand settlement of the account at any time and, if it deems necessary, can sell other securities held in the investor's account to repay the balance.
Back to List

Maturity
The date on which a loan, bond or debenture becomes due and on which the principal is repayable.
Back to List

Money market instruments
A collective term that refers to the full range of interest-bearing, short-term investments with maturities of less than one year.
Back to List

Mutual fund
A fund operated by a professional investment firm that raises money from shareholders and invests it in a variety of stocks, bonds, money market instruments, futures or commodities that meet the investment objectives of the fund. Mutual funds allow investors to benefit from professional management and asset diversification, for which a fee is charged.
Back to List

Net worth
The difference between an individual's total assets (what they own) and their total liabilities (what they owe).
Back to List

Non-registered investments
Non-tax-sheltered investments, or those on which earnings are recognized as income in the year they are earned and taxed according to Revenue Canada regulations.
Back to ListOption
The right to buy or sell a specific security or property at a specified price within a specified period of time.
Back to List

Overdraft
An overdraft occurs when money is withdrawn from an account and the available balance goes below zero. In this situation the account is said to be "overdrawn". If there is a prior agreement with the account provider for an overdraft, and the amount overdrawn is within the authorized overdraft limit, then interest is normally charged at the agreed rate. If the negative balance exceeds the agreed terms, then additional fees may be charged and higher interest rates may apply.
Back to List

 Overdraft Protection
This valuable service helps you manage your cash flow by offfering protection for those times when you dont have sufficient funda available in your account to complete a transaction. Overdraft protection is like a safety net - it makes the funds available when and if you need them, up to your approved limit.
Back to List

Overdrawn
Your account is considered overdrawn when you have taken more money out of your account than the account contained, resulting in a negative balance. 
Back to List

Par value
The stated face value of a bond or stock (as assigned by the company's charter) expressed as a dollar amount per share.
Back to List

Pension adjustment (PA)
The amount contributed annually to a registered pension plan, either by an employer or employee.
Back to List

Portability
In pension plans, the ability to take the benefits promised by a company's pension plan when changing jobs and move them to another company plan, or to another approved plan such as a Locked-in Retirement Account. In mortgages, the ability to transfer the terms and conditions of an existing mortgage to a new home when moving.
Back to List

Portfolio
Holdings of securities or investments by an individual or institution.
Back to List

Portfolio manager
A professional investment counsellor who personally manages a client's portfolio, making the investment decisions on behalf of the client (see also discretionary portfolio management).
Back to List

Posted rate
Publicly announced rate of interest guaranteed by a financial institution and paid on personal bank accounts and on specific debt instruments such as term deposits and GICs.
Back to List

Power of attorney
A legal designation which permits an individual (the attorney) to act on behalf of another individual (the principal) and to conduct the principal's financial affairs while he or she is still alive.
Back to List

Preferred stock
A class of share capital that entitles its owners to certain preferences over common stock such as a fixed rate of dividend or the return of the stock's par value in a liquidation.
Back to List

Prescribed annuity
Purchased with non-registered assets, a prescribed annuity provides the annuitant with a regular stream of pre-specified income payments throughout the term of the annuity. Because income tax would have been previously assessed on the original principal, only the interest portion of the payments are taxable.
Back to List

Probatable assets
Assets which form part of a deceased's estate as named in the will including personal investments, RSPs, RIFs, insurance and real estate.
Back to List

Prospectus
A legal document constituting a formal written offer to sell securities. The prospectus includes relevant information and facts concerning the security, enabling investors to make informed decisions.
Back to List

Rate of return risk
Risk that returns may not meet an investor's expectations. Most often relates to equity investments where the return is never guaranteed and can only be measured once the investment is sold.
Back to List

Real rate of return
The adjusted after-inflation return, calculated by subtracting the current rate of inflation from the rate of return earned on a specific investment.
Back to List

Registered Education Savings Program (RESP)
A registered investment vehicle that allows an individual to save for a child's (or children's) higher education on a tax-sheltered basis.
Back to List

Registered investments
Investments recognized by Revenue Canada which allow individuals to defer paying income tax on principal and earnings until the income is removed from the account. A general term that includes plans such as Registered Retirement Savings Plans (RSPs), Locked-in Retirement Accounts (LIRAs), Registered Retirement Income Funds (RIFs), Registered Educational Savings Plans (RESPs) and annuities purchased with the proceeds of an RSP.
Back to List

Registered pension plan
A private pension plan, usually established by an employer on behalf of its employees, and recognized by Revenue Canada. There are two basic types of pension plans -- Defined Contribution Pension Plans and Defined Benefit Pension Plans (also referred to as a money purchase plan).
Back to List

Registered Retirement Income Fund (RIF)
A type of registered plan that allows an individual to withdraw a stream of income from the savings or investments previously held in an RSP. The principal remains tax-sheltered until withdrawn from the plan as income.
Back to List

Registered Retirement Savings Plan (RSP)
A formal investment plan which allows an individual to accumulate savings and earnings for retirement on a tax-sheltered basis.
Back to List

Safe deposit box
A personal storage box located in a bank that can be rented on an annual basis to keep valuables and important papers.
Back to List

Securities
Representing the full range of investment opportunities, a security can refer to an instrument which allows the holder to claim an ownership position in a corporation (a stock); a creditor relationship with a corporation, a government or its agency (a bond); or other rights to ownership as stipulated in specific contract (a futures contract).
Back to List

Securities Commission
A provincial body responsible for the administration of a province's securities legislation and entrusted with the regulation of public securities trading. Provincial securities commissions ensure that potential investors receive pertinent financial information and other data to permit informed decision-making, and establish safeguards against fraudulent trading activities.
Back to List

Self-directed RIF
A RIF held with a brokerage firm which permits you to choose from the full scope of RIF-eligible investments.
Back to List

Self-directed RSP
An RSP held with a brokerage firm which permits you to choose from the full range of RSP-eligible investments.
Back to List

Share
Ownership of a part of the capital stock of a corporation as represented by the possession of share certificates registered in the name of the shareholder.
Back to List

Shareholder
The owner of one or more shares or stocks in a corporation.
Back to List

Speculator
One who is prepared to accept calculated risks in the marketplace in anticipation of higher returns.
Back to List

Spousal RIF
A RIF set up from the proceeds of a spousal RSP. There may be tax consequences to the contributor if withdrawals in excess of the minimum annual RIF payment are taken in the year, or subsequent two years, after the plan is converted.
Back to List

Spousal RSP
An RSP to which one spouse (usually the one with the higher earnings) makes contributions on behalf of the other spouse (usually the one with the lower earnings) and receives a tax deduction on the contribution.
Back to List

Stockbroker
One who acts as an agent in the buying and selling of securities and charges a commission for these services (see also full-service broker, discount broker).
Back to List

Survivor benefits
Benefits to which a surviving spouse is entitled with regards to pensions, health care benefits, etc.
Back to List

Term deposit
Very similar in nature to a Guaranteed Investment Certificate (GIC), term deposits generally pay a slightly lower interest rate as they may be redeemed at any time.
Back to List

Testator/Testatrix
A person who makes a will.
Back to List

Treasury bills (T-Bills)
Short-term interest-bearing money market instruments issued weekly by the federal government and sold in maturities ranging from 30 days to one year.
Back to List

Trustee
The person or persons who take legal title to a trust property and who are required to follow the terms of the trust. The trustee may be a trust company and/or an individual.
Back to List

Undeducted contribution
The difference between the amount of tax deduction taken in a specific year and the (greater) amount of the individual's actual RSP contribution. May be claimed as an expense on future tax returns.
Back to List

Unused deduction room
The difference between your annual allowable RSP deduction limit and the actual (lesser) amount of your contribution. May be made up in future years in additional RSP contributions.
Back to List

Vested
The point at which you earn the right to keep an employer's contribution made to a company pension plan on your behalf.
Back to List

Will
A written document conforming to strict provincial rules which gives instructions to the executors appointed under it concerning the distribution of the property and assets of a deceased person.
Back to List

Withholding Tax
The amount of money a financial institution is legally obliged to withhold at source and remit to Revenue Canada on funds withdrawn from an RSP, or on RIF income payments which exceed the minimum annual income payment amount.
Back to List

Yield
Return on an investment, reflected in historical terms. Yield is not guaranteed.
Back to List

 

Printer Friendly

SUMMER LOAN SALE

Vehicle Financing rates as low as 3.15% Contact our Lenders for more details!

Learn More

We've Got You Covered

When you use your debit card, purchases are protected if broken or stolen, and their warranties are extended. A unique benefit for credit union members!

Learn More