Investment solutions

Fixed Income

Creating A Well-Balanced Portfolio Using Fixed Income

Through CIBC Wood Gundy, you have access to one of the largest inventories of fixed income investments in the industry.

Fixed income securities appeal to investors for several reasons:

Diversification: By diversifying your portfolio with fixed income securities, you can reduce your investment risk and potentially increase your returns over time.
Safety: Fixed income securities provide a steady stream of income and an issuer guaranteed pay-back price if held to maturity. In addition, the safety of a fixed income security is reflected in the credit rating of the issuer.
Certainty: High quality fixed income securities can provide a series of predictable cash flows over a period of time with minimal risk to the invested capital. This feature is essential for budgeting and long-term planning.
Choice: The multitude of fixed income securities available today provides investors with a flexible means to increase the value of their investments.

Whether you're looking for government bonds, corporate bonds, stripped bonds, GICs or money market instruments, we have access to the fixed income product you need.

Retirement Solutions

Whether saving for retirement or a child's post-secondary education, registered accounts are a tax-effective addition to any investment portfolio.

Registered Retirement Savings Plan (RRSP): RRSP contributions, up to an annual maximum amount, are tax deductible, and your investments grow tax-deferred until withdrawal.
Registered Retirement Income Fund (RRIF): A RRIF is a tax-effective way to draw income from your RRSP after retirement, while continuing to earn tax-free growth on the funds within the account.
Tax-Free Savings Account (TFSA): You can contribute up to $5,000 to a TFSA each year and access your savings at any time. Your investments grow tax-free and you won't pay tax on any growth earned in the account, even when you make a withdrawal.
Locked-In Retirement Account (LIRA): A LIRA is an RRSP subject to restrictions under federal or provincial pension legislation. You may transfer eligible pension funds to a LIRA, where the funds can grow tax-deferred until withdrawal.

For more information on these accounts, and other registered and non-registered accounts and services available through CIBC Wood Gundy, please contact our office.

Registered Retirement Savings Plans (RRSP)

Whether retirement is many years away or just around the corner, maximizing your retirement savings should be one of your primary financial objectives. To maximize the benefits offered by a Registered Retirement Savings Plan (RRSP), there are several strategies you should consider:

While many Canadians wait until the annual deadline to make their RRSP contribution, setting up a regular investment plan means you can take advantage of tax-deferred growth on your investments throughout the year.
Develop a fully balanced portfolio by considering the full range of investments available, along with the risk and return potential of each.
A Spousal RRSP can help you and your spouse equalize income in retirement. You can make contributions to both a Spousal RRSP and an individual RRSP, but the total amount of contributions cannot exceed your annual contribution limit.
An RRSP is a long-term investment. When you take a long-term approach to investing within your RRSP, volatility becomes less of a concern and temporary downturns in the market can become buying opportunities.

Incorporating a registered plan into your overall financial plan is an important first step in the retirement planning process. Regardless of your stage in life, we have the registered plan option to suit your needs.

Registered Retirement Income Funds (RRIF)

Throughout your working years, you contribute to your Registered Retirement Savings Plan (RRSP) to ensure you have the income you need to spend your retirement doing the things you love. When you retire, you want to use your savings in the most tax-effective way possible.

A Registered Retirement Income Fund (RRIF) allows you to take taxable income withdrawals from your retirement savings, while deferring tax on the balance of those savings until they're withdrawn. There is no maximum amount that you can withdraw from a RRIF each year, but you must withdraw at least the minimum annual payment.

It's important to remember that a RRIF is subject to the same risks as any other investment account: potential returns can be affected by interest rates, economic factors, general market conditions, investment choices, your income planning, lump-sum withdrawals and other management decisions. This can have a major impact on income and capital.

We can work with you to find RRIF investments that will meet your income and capital needs, and help you enjoy retirement your way.

Registered Education Savings Plans (RESP)

Investing In Learning

Today, more than ever, a post-secondary education is key to a successful career. But, as tuition costs continue to increase, many students are left with overwhelming debt after university or college.

You can provide your child or grandchild with the gift of a post-secondary education by establishing a Registered Education Savings Plan (RESP), a tax-effective account that offers many benefits to help you make the most of your savings:

You can contribute up to a lifetime maximum of $50,000 per RESP beneficiary.
Contributions to an RESP are not tax-deductible, but your investment grows tax-free until withdrawal.
The first $2,500 you contribute each year may be eligible for the Canada Education Savings Grant (CESG) of up to 20 percent, to an annual maximum of $500 and a lifetime limit of $7,200.
Amounts withdrawn from an RESP to pay for eligible post-secondary education expenses will be taxed in the beneficiary's hands, generally at a lower tax rate.

Regardless of your stage of life or family circumstances, there are several effective education-funding strategies that may suit your needs.

Tax-Free Savings Accounts (TFSA)

We all want our investments to grow faster while paying less tax. And we want to know that our money will be there when we need it. A Tax-Free Savings Account (TFSA) meets both these needs by offering flexibility and tax-free growth on your investments.

Here are just a few of the features and benefits of a TFSA:

You can contribute up to $5,000 per year to a TFSA and unused contribution room can be carried forward to any future year.
Contributions are not tax-deductible, but your investments will grow tax-free within the account and you will not pay tax on any income or capital gains earned within the TFSA, even when you make a withdrawal.
You can withdraw funds from your TFSA at any time, for any reason. Withdrawals are tax free, and the amount you withdraw will be added back to your contribution room in the next calendar year.
Contributions in excess of the maximum amount will be subject to a penalty tax of one percent per month.
A Tax-Free Savings Account is one more way we can help you achieve all of your financial goals.