There are many different types of investments with new and "better" types appearing on the market all the time. However, every few years some of these "better" investments collapse and fail to be the amazing products promoted. Though traditional products do not grab the spotlight or promise massive returns, they are still the most reliable and sustained investment tools. Since the most important part of investing is that you are providing for yourself in the future, it is important to consider all the options.

"Lill Jorgensen has been our financial advisor for a number of years and we know that she has our best interest in mind. She keeps current with the world economy and its effect on our fund portfolio. We consider Lill a friend and a very professional financial advisor."

Allan and Grace S (READ THE FULL NOTE)

Registered Retirement Savings Plans (RRSP)

The point to an RRSP is to put money in when you are in a higher tax bracket and take it out when you are in a lower tax bracket, therefore paying less tax in the long run. To do this properly you need to have a plan in place, know where your income is going to go and have other sources of long term retirement savings like a TFSA or an open account.

Tax Free Savings Account (TFSA)

A very misunderstood product that is highly underused. A TFSA is not a traditional savings account where you get a few pennies of interest; it can hold many different types of investments. It should be used as a long term planning tool not a short term slush fund. The TFSA should hold investments that have the potential to grow the most over time and therefore save the most tax. It is an excellent way to save up a lump sum of tax paid/free monies for future plans and retirement. TFSA's are limited to a $5000 per year maximum contribution retroactive to 2009.

Registered Retirement Income Fund (RRIF)

When you start drawing down your RRSP it turns into a RRIF. You can withdraw monthly income or lumps sums. When you withdraw, it is considered income and is taxable. There are minimum withdrawal requirements starting at age 72 and all RRSP's must be turned into RRIF's by the end of the year in which you turn 71.

Locked in Retirement Account (LIRA)

A LIRA is a retirement plan that comes from a pension plan when you leave a company's employment. You are unable to withdraw from the plan until a certain age and there are minimum and maximum withdrawal limits imposed on the plan, so it is less flexible than an RRSP. Life Income Funds (LIF) and Locked in Retirement Income Fund (LRIF) are a similar type of product.

Open Account

A non registered savings plan. With the creation of the TFSA, the open plans should only be used once a TFSA is maximized or if you are using a leveraging strategy. Monies in these accounts are taxable annually or upon withdrawal depending on the type of income generated.

It is with pleasure that I say the most important investment I have made is picking Lill to help me plan for retirement. Lill is always on the pulse for evaluating what options are best for me and always has a well thought out strategic plan. She is so knowledgeable and I so trust her.

~Jude L

Registered Education Savings Plan (RESP)

With the ever increasing demands for education and the increasing costs of post secondary education, an RESP is a great way to save for your children's future needs. There are many rules surrounding the RESP, but the bonus is that the government will give you a grant of 20% (up to $500) of your contribution, maxing out when you contribute 2500 per child per year.


There are many types of annuities, but they are basically income payments guaranteed for a certain time period, very much like a pension. They can be created from any source of income (RRSP, open account, TFSA, etc.) and have options like indexing for inflation, spousal benefits after the annuitant's death, or be guaranteed for a short term or for life.

Guaranteed Investment Funds (GIF)

Also known as segregated funds and are offered through life insurance companies. Although similar to mutual funds, there are many important differences. GIF's have death benefits, maturity guarantees and other options that can be added. All of the plans (RRSP, TFSA, etc.) can be set up using segregated funds.

Term Investments or Guaranteed Investment Certificates

A guaranteed interest rate for a specific period of time.

*Mutual fund products and services provided through Desjardins Financial Security Investments Inc.

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