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The best first step – investing with an RRSP

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

Guaranteed interest certificates (GICs)
  • You invest for a specific period of time at a guaranteed interest rate.
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.
Linked deposit notes
  • Gives you the growth opportunity of mutual funds or other equity investments, while providing protection of your invested capital.

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

Through our association with CI Investments and other mutual fund companies, 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.

Tax Free Savings Account

Tax-Free Savings Account (TFSA)
  • Save up to $5,000 a year. Your money grows without being taxed.

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.
Published: 03/12/2007
Last updated: 03/12/2007