Everyone. Too many people mistakenly think they need to have a lot of assets to meet with a financial security advisor.
Quite the contrary, regardless of the amount of assets, the financial security advisor can play a lucrative role in family financial planning. Indeed, according to the Investment Funds Institute of Canada (IFIC), households that have retained the services of a financial security advisor have accumulated on average 290% more assets over a period of 15 years than those who have not. Canadians who do business with an advisor are more successful in building wealth and achieving their goals. Advisors concretely change the lives of Canadian investors.
The reality is that everyone has projects, goals, and concerns, even without realizing it. Because there are as many goals as there are people, all goals are valid:
- Building a house;
- Expanding the family;
- Going on a trip;
- Supporting your children during their studies;
- Spoiling yourself in retirement.
Therefore, the financial security advisor’s mission is to lead you to achieve your goals with a credible financial plan regardless of your present reality:
- Whether you are early in your career or near retirement.
- Whether you are a finance novice or a scholar.
- Whether you have a very small sum to save or more means.
The different types of investments
Depending on your investor profile, 4 different types of investments are available for your RRSP, TFSA, RESP, LIRA, LIF, etc. and are grouped into two main fund families (guaranteed investment funds and investment funds)
Guaranteed Investments (GIF, HISA, DIA+)
- Guaranteed Interest Funds
Like Guaranteed Investment Certificates (GICs) offered by banks, guaranteeing 100% of your capital at maturity, Guaranteed Interest Funds (GIFs) are an investment option that offers a fixed and guaranteed interest rate for the duration of your investment. However, they offer, at no extra cost, advantages not offered by GICs, such as quick settlement in the event of death and possible protection against creditors.
Advantages of guaranteed interest investments
- Reduce risks associated with market volatility
- Improve portfolio diversification
- Guarantee 100% of capital at maturity
- Offer competitive returns
- Are a good alternative to bonds
- Are available in any type of vehicle (RRSP, TFSA, etc.)
- Have no management fees.
- Individuals as well as corporations can benefit from this investment instrument
High Interest Savings Account
A High Interest Savings Account (HISA) allows you to have better returns on your savings thanks to an interest rate higher than that of a chequing account.
Simple and accessible, this option is ideal for people who wish to save without risk. You can, for example, use it to build an emergency fund, save for a project, or shelter money from market volatility while waiting for the right time to invest. It also offers guarantees such as quick settlement in the event of death and possible protection against creditors.
What are the advantages of the High Interest Savings Account?
- Offers returns superior to those of a chequing account
- Reduces risks associated with market volatility
- Available in any type of registration (RRSP, TFSA, etc.)
- Improves portfolio diversification
- Represents an excellent option for building an emergency fund
Daily Interest Account +
Interest in the Daily Interest Account + (DIA +) accumulates in your investments on a daily basis and is paid to you monthly.
The DIA + allows you to make deposits yourself into your investments previously determined with your advisor, thanks to the automatic investment term (AIT). It also offers guarantees such as quick settlement in the event of death and possible protection against creditors.
Segregated Funds
Aside from similarities to mutual funds, segregated funds offer major guarantees and advantages
The main advantages of segregated funds are:
- Guarantees that protect invested sums against market downturns.
- Protection of the amount invested at investment maturity and at death
- Protection of investment gains each year thanks to resets
- Possibility to avoid probate fees
- Quick settlement in the event of death
- Protection against creditors
- Simpler and faster tax reporting
- Possibility of guaranteed income for life
- The assets of these funds are managed separately from those of the company
