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Investment Planning

Investing isn't about owning more funds. It's about knowing what your money is meant to do.

Build an investment plan around your goals, time horizon, tax accounts and comfort with risk — then choose investment solutions that fit the plan.

Investment values can rise or fall. Past performance does not guarantee future results.
Canadian family building an investment plan
Your RRSP isn't the goal. Retirement is. Accounts and investments are tools. Start with what the money needs to accomplish.
Start With Your Life

Before asking what to invest in, decide what you're investing for.

Someone saving for a home in three years shouldn't necessarily invest the same way as someone building retirement wealth over the next 25 years.

The goal, timeline, tax structure and amount of market volatility you can realistically tolerate should shape the investment plan.

The investment product comes after that.

What is the money for? Retirement, home, education, future income or another family goal?
When will you need it? Three years and thirty years can require very different decisions.
How much uncertainty can you live with? A plan only works if you can realistically stay with it.
Quick Answer

What is investment planning?

Investment planning is the process of connecting your money to specific financial goals and then deciding which accounts, contribution strategy and investment solutions may help support them.

It can include decisions around TFSA, RRSP, FHSA, RESP, retirement income, non-registered savings and investments held by an incorporated business.

TFSA RRSP FHSA RESP Retirement Planning Corporate Investing
Give Every Dollar a Job

Different goals deserve different investment decisions.

One family may be saving for retirement, a first home and a child's education at the same time. Those dollars do not necessarily belong in the same place.

01

Retirement

Build long-term wealth and coordinate how TFSA, RRSP and other savings can eventually create income.

02

First Home

Coordinate FHSA and other savings while respecting a shorter and more important withdrawal date.

03

Children's Education

Use an RESP to combine family contributions, available government incentives and a suitable investment timeline.

04

Future Flexibility

Build accessible wealth for goals that may change long before retirement arrives.

Where You Invest Matters

Choosing the investment is only half the decision. The account holding it matters too.

A TFSA, RRSP, FHSA and RESP can all hold investments, but they were created for different planning purposes and have different contribution and tax rules.

The right account depends on your income, financial goal, timeline and when you may need access to the money.

Family organizing TFSA RRSP FHSA and investment goals
The account is the container. The investment is what goes inside. Both decisions can affect your overall plan.
Which Account Is For What?

Don't choose an account just because someone said it saves tax.

Start with what the account is designed to help you accomplish.

TFSA

Flexible tax-free growth

Contributions are not deductible, but qualifying income and withdrawals are generally tax-free.

RRSP

Retirement-focused savings

Deductible contributions can reduce taxable income, while withdrawals are generally taxable.

FHSA

Saving for a first home

Designed for eligible first-time home buyers, combining deductible contributions with qualifying tax-free withdrawals.

RESP

Saving for education

Designed for post-secondary education and can provide access to eligible government education incentives.

Risk Is Personal

“I'm comfortable with risk” sounds different when your portfolio is actually down.

Investment risk isn't only a questionnaire score. It also depends on your timeline, financial capacity to absorb losses and how you are likely to react during volatility.

Timeline

When do you need the money?

Someone decades from retirement may have more time to recover from volatility than someone buying a home next year.

Capacity

Can your plan financially absorb a decline?

Emergency savings, income stability and other assets affect how much investment risk your financial plan can carry.

Behaviour

Can you stay invested?

A portfolio that causes you to abandon the plan during every market correction may contain more risk than you can comfortably live with.

Segregated Funds

Market-based investing with insurance-contract features.

Segregated funds are investment contracts issued by life insurance companies.

Like other market-based investments, their value can rise or fall. What makes them different is that the insurance contract may include features such as maturity guarantees, death-benefit guarantees and beneficiary designations.

Those features can make segregated funds useful for certain clients — but they are not automatically the right investment simply because guarantees are available.

What can make a segregated fund different?
Features, guarantees, fees and conditions vary by insurer and individual contract.
01
Maturity guarantee Certain contracts guarantee a percentage of eligible deposits at a specified maturity date, subject to contract terms.
02
Death-benefit guarantee The contract may provide a guaranteed minimum amount to the beneficiary when the last annuitant dies.
03
Beneficiary designation Eligible beneficiaries can be named directly under the insurance contract.
04
Investment choices Available contracts may offer different fund choices and levels of investment risk.
Parents saving for a child's education through an RESP
Education has a deadline. The investment plan should gradually respect it as your child gets closer to school.
RESP & Education Planning

Saving for school isn't just about opening an RESP when the child is born.

An RESP can help families save for post-secondary education and may qualify for government education incentives.

But the investment strategy should change as the beneficiary gets closer to needing the money.

The objective at age two may be growth. The objective at age seventeen may be protecting money that will soon pay tuition.

Retirement Planning

At some point the question changes from “How much can I grow?” to “How much can I spend?”

Building retirement wealth is only the first half of retirement planning.

Eventually TFSA, RRSP, RRIF and other assets need to work together to support spending while managing taxes and investment risk.

How much income will you need? Start with the lifestyle rather than a random retirement number.
Which account should money come from first? TFSA, RRSP/RRIF and non-registered withdrawals can have different tax consequences.
How much market risk can retirement income tolerate? Your portfolio may need a different role once withdrawals begin.
Couple planning retirement income in Canada
Retirement isn't an account balance. It's turning years of savings into years of life.
Investing Inside a Corporation

Not every dollar sitting in the company needs to stay in cash forever.

An incorporated business may eventually accumulate capital beyond what it needs for payroll, taxes, debt and near-term opportunities.

Long-term surplus may then become part of a broader corporate investment plan.

Corporate taxation can be more complex than personal investing, so investment decisions should be coordinated with the client's accountant and other appropriate professionals.

Before investing corporate cash

Separate the money the business may need from the capital that genuinely has a longer time horizon.

Operating cash Payroll, suppliers, tax and normal expenses.
Opportunity capital Hiring, equipment, acquisitions or business expansion.
Long-term surplus Capital the business does not reasonably expect to require for near-term operations.
Investing Is Ongoing

Your investments may be long term. Your life won't stand still.

Career changes, children, home purchases, businesses and retirement can all change what your money needs to do.

01

Define

Give each financial goal a timeline and purpose.

02

Structure

Choose appropriate account types and investment solutions.

03

Contribute

Build a contribution strategy your cash flow can sustain.

04

Review

Revisit the plan when your goals, timeline or circumstances change.

MK Financials advisor helping a family organize investment planning
How We Help

We don't start with “Which fund should you buy?”

We start by understanding what you're trying to accomplish, when you'll need the money and how the investment fits alongside the rest of your financial life.

From there, we can help you understand appropriate account structures and insurance-based investment solutions available within the scope of the services we provide.

Where tax, legal or other specialized professional advice is required, we believe the better plan is one that works alongside those professionals rather than pretending one advisor should do everything.

Organize your goals. Know what each pool of money needs to accomplish.
Coordinate registered accounts. TFSA, RRSP, FHSA and RESP should serve different purposes where appropriate.
Understand investment risk. Your timeline and ability to tolerate volatility matter.
Connect protection and wealth. Growing the financial plan and protecting it should not happen in isolation.
Investment Planning FAQs

Questions families ask before putting their money to work.

The account, investment product and financial goal are related — but they aren't the same decision.

It depends on factors such as your income, current and future tax situation, employer benefits, financial goals and when you may need the money. Many families eventually use both.
Yes. A TFSA can hold eligible investments as well as savings products. Investment income and qualifying withdrawals are generally tax-free, subject to TFSA rules.
A segregated fund is an individual variable insurance contract issued by a life insurance company. It provides investment exposure while potentially including insurance-contract features such as maturity and death-benefit guarantees, depending on the contract.
No. The market value of a segregated fund can rise or fall. Certain contracts provide guarantees at specified maturity or death-benefit events, but guarantee percentages, conditions and reset provisions vary by contract.
An FHSA is designed for eligible first-time home buyers and can provide deductible contributions with qualifying tax-free withdrawals toward a first home. TFSA contributions are not deductible, but qualifying investment growth and withdrawals are generally tax-free.
An RESP is designed to help save for post-secondary education and can provide access to eligible federal and provincial education savings incentives.
Corporations can hold investment assets, but investment income inside a private corporation can have specific tax consequences. Operating needs, future business opportunities and tax planning should be considered before investing long-term corporate surplus.
Review the plan when meaningful changes occur in your family, income, financial goals, time horizon or comfort with risk. Regular periodic reviews can also help keep the strategy aligned.
Investment Disclosure

Investments involve risk and values can fluctuate. Past performance does not guarantee future results. Investment products, fees, guarantees, taxation and availability vary by product and provider. Any investment recommendation should consider the individual's objectives, time horizon, financial circumstances and risk tolerance. Segregated funds are individual variable insurance contracts issued by life insurance companies and are subject to the terms, guarantees, fees and conditions of the applicable contract. Tax information on this page is general in nature and should not be considered tax or legal advice.

Build the Plan Before Picking the Investment

Your money should have a purpose. Your investment decisions should follow it.

Tell us what you're saving for, how long you have and what accounts you already use. We'll help you organize the investment planning decisions around your goals.

Start Planning