Ideal for short-term and long-term investing.
Non-registered accounts are investment accounts offered by banks and financial service providers in Canada. These accounts are a type of brokerage account and may also offer margin borrowing. Many financial advisors recommend using non-registered accounts for short-term and long-term investing. These accounts offer a lot of flexibility with consistent liquidity and no contribution limits. They also include a tax benefit. Capital gains from investments in non-registered accounts are taxable at only 50% of the account holder’s marginal tax rate.
Non-registered accounts can be used in conjunction with other types of investment accounts including registered retirement savings plan (RRSP) accounts. Non-registered accounts are sometimes compared to RRSPs. RRSPs have specific requirements for contributions and withdrawals. Withdrawals from RRSPs must be reported as income. At age 71, an RRSP must be converted to a registered retirement income fund (RRIF).
A non-registered account can play an important role in your overall investment strategy, especially if you’ve maxed out a registered account like your RRSP. While they’re not tax sheltered, non-registered accounts enable you to invest an unlimited amount of money in an array of investments. A non-registered savings plan is for you if you have reached your RRSP and TFSA contribution limits and would like to continue to save for a project or for your retirement. You will enjoy a higher rate of return than with your bank account and can put money into investment funds. A financial advisor can explain all the investment opportunities at your disposal.
Unique benefits of a non-registered savings plan:
Our qualified consultants will take the time to review your current investment account and see if your investments holding have the right asset allocation and are managed according to your risk tolerance.