investments

INVESTMENT Accounts

At Legacy we are serious about helping you build wealth. In order to satisfy your portfolio needs there are several account types that can be opened;

 

Non-Registered savings plan

Tax-Free Savings Account (TFSA)

Registered Retirement Savings Plan (RRSP)

Registered Education Savings Plan (RESP)

Locked-in Retirement Account (LIRA)

Registered Retirement Income Fund (RRIF)

Life Income Fund (LIF)

Annuity

 

Take advantage of one or more of these accounts for investors who wish to grow their portfolio and minimize their risk.


 

THE RISK of Not Taking Risk

How do I grow my portfolio without any risk? Unfortunately, it does not work like that. There is a specific relationship between risk and return. The higher the risk, the higher the potential return. Keeping your money safe in a ‘no risk’ investment may increase the risk of not having enough money to meet your retirement needs.

 

Safe investments may provide a very low or in some cases a negative return when taxes and inflation are considered.

 

No Risk Investments

 

Rate of Return

4.00%

Less Taxes

-          1.74%

Less Inflation

-          2.00%

Real Return

0.26%
* at a 43.41% marginal tax rate
 
A real return of 0.26% is more than likely not enough for your retirement needs. It seems that not taking any risk, may be the greatest risk of all.  

 

MARKET Watch

INVESTMENT Time-lines

Having a clear understanding as to when investments are required is an important component to determine your investment choices. In the short or medium term, investments may experience low or even negative performance.

 

Investment products are divided among three broad asset classes;

 

Security

Income

Growth

 

Your investor profile is determined by your risk tolerance and your investment time horizon. As your partner in building wealth, a Legacy representative will help you establish your investor profile and recommend products most suited to your needs.

INVESTMENT Checklist - 5 Questions to Ask

I.     Does it meet your investment needs and objectives?

II.    Do you understand its features? What are the risks? What is the earning potential?

III.   To what extent is the success of the investment dependant, upon something like interest rates, market conditions or a company’s success?

IV.   For debt investments, have you considered the direction of interest rates?

V.    How much risk are you prepared to accept?