What is Universal Life Insurance? Universal Life Insurance is a type of Permanent Life Insurance that includes investments that can grow over time and can be used to fund your policy. How does it Work? Universal life insurance is a great option for those who need life insurance and want to invest. Depending on how …
What is a Dividend? A dividend is a share profit of a company’s earning to a particular class of its shareholders. The amount is determined by the company’s board of directors. When a company makes profit and accumulates retained earnings, those can be reinvested in the company or paid out as dividends. Dividends are paid …
What is an Exchange Traded Funds (ETFs)? An exchange-traded fund (ETFs) is a financial security that tracks a particular index and is traded on a stock exchange. ETFs can contain stocks, bonds, commodities or a mixture of these investment types. Advantages Diversification ETF gives you a more diverse portfolio. Can explore a broader market for …
What is a Mutual Funds? A Mutual Fund is a financial vehicle which uses pooled money from the investing public to purchase stocks, bonds, money market instrument etc. Mutual Funds allow you to take advantage of professional investment management as it is operated by professional money managers. The investment vehicles also give individual and small …
What is Alternative Funds? An alternative fund is a financial bridge gap asset between Mutual Funds, ETFs and hedge funds. It is a liquid alternative that is not categorized as conventional investments (eg. Stocks and Bonds). Alternative funds investments include venture capital, managed futures, arts & antiques, commodities, derivatives contracts and private equity. Real estate …
What is a Bond? When the government or cooperation wants to raise money they issue a bond. A bond represents debt to a company and a source of fixed income to an investor. Bonds are used by the government or a company to fund projects and operations. Bonds give you no ownership rights from the …
What is Segregated Fund? A Segregated funds is an insurance investment product that functions similar to a mutual fund. The difference between mutual funds and segregated funds is they offer guarantees such as maturity and death benefits. The management expense ratio is usually higher than that of a mutual fund because of these guarantees. Segregated …
What is Interest? Interest is the premium someone is willing to pay to borrow your money and expressed as an annual percentage rate (APR). Inflation rates, length of the loan, liquidity and risk of default can all affect the interest rates. The amount of interest you earn or pay depends on: The interest rate The …
What is Investing? Investing is a way of allocating money or resources in the hopes of generating an income or profit. The future value of every investment is a function of its present price; whether it be positive or negative. The objective of investing is to produce a positive return. Examples of Investments Stocks, Bonds, …
What Is TFSA? The Government of Canada introduced the Tax Free Savings Account (TFSA) in 2009 to provide Canadians with a personal savings vehicle, tax free. TFSA Facts Tax-free on any investment earnings Tax-free withdrawals No age limit Contribution limits are not determined by income No impact on government benefits Spouses (and common-law partners) can …