Building your savings

The world of investing can be complex, but luckily, for those who simply want to see their money grow; it doesn't have to be difficult. All it takes is some discipline and a little advice along the way.

Here are some examples of goals that you are probably familiar with:

  • Short-term saving, for example for a new car or a trip.
  • Long-term saving, for example for retirement, or for a child's education.

Your goals require your own approach to saving. Understanding your investment options will help you achieve your goals. Here's an introduction to the most common options.

Guaranteed interest savings products

   
Accumulation annuities (AAs)
  • Similar to GICs – with additional guarantees and benefits offered by Sun Life Financial.
  • You invest for a specific period of time at a guaranteed interest rate.
Guaranteed investment certificates (GICs)
  • You invest for a specific period of time at a guaranteed interest rate.
Sun Market Linked GICs
  • An investment option that can offer protection on your initial investment with the potential to earn returns based on the performance of the Canadian stock market.

Market-based investment products

Investments in stock and bond markets are intended for longer-term investing are very popular with Canadians.

We sometimes call these "market-based" investments.

The returns go up and down, they are not guaranteed.They provide a chance for your money to grow faster than with guaranteed interest investing. You can lose money at times.

   
Mutual funds

You put your money into a large pool of money, managed by investment professionals who invest in stocks and bonds. Each mutual fund has:

  • distinct objectives – make sure they are appropriate for your goals
  • a distinct management style (e.g. aggressive growth, conservative value, or focus on individual market sectors such as Canadian energy)
  • its own fee structure

Sun Life Financial provides access to some of the best mutual fund managers in Canada and around the world.
Segregated funds
  • Very similar to mutual funds, but also offer some protection of your capital through additional guarantees and benefits.
  • Available only from insurance companies, including Sun Life Financial.
Stocks, bonds, exchange traded funds, futures, derivatives, etc.
  • There seems to be no end to the variety of emerging investment options – many of them very complicated.
  • Sun Life Financial does not offer these individual products.
  • Mutual funds are available and are an easier way to invest in stocks and bonds.

Registered Retirement Savings Plans (RRSPs)

   
RRSPs
  • This government program provides a tax-deferred savings opportunity for your retirement.
  • If you contribute to an RRSP, you are usually exempt from tax for the period of time the funds remain in the plan (up to certain limits).
  • You will generally have to pay tax if you withdraw from the plan or if you cash in or receive payments from the plan.

Sun Life Financial provides many RRSP-eligible investments, including guaranteed savings products and market-based investment products.

Tax Free Savings Account

   
Tax-Free Savings Account (TFSA)
  • Save up to $5,500* a year. Your money grows without being taxed.

*Effective January 1, 2013, the TFSA contribution limit is $5,500. The $5,000 TFSA contribution limit will still apply to all years prior to 2013.

Education savings

   
Registered education savings plans (RESPs)
  • Specifically designed to help you save money for your children's education, this government program lets you save the money without tax, and you are eligible for a grant from the government!
  • Sun Life Financial provides access to RESPs through our association with CI Investments.

Sun Life Financial advisors offer products issued by Sun Life and products from other companies in the Sun Life Financial group of companies. These include:

  • life insurance, health insurance, segregated funds and annuities issued by Sun Life and offered by Sun Life Financial Distributors (Canada) Inc.
  • mutual funds offered by Sun Life Financial Investment Services (Canada) Inc.
  • guaranteed investment certificates (GICs) and principal-protected notes (PPNs) issued by Sun Life Financial Trust Inc.

Ready to buy?

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Contact us by phone

Call 1 877 SUN-LIFE (1 877 786 5433)
Monday to Friday, 8 a.m. to 8 p.m. ET

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The best first step – investing with an RRSP