Many investment products are available to help you reach your financial goals, whether it’s saving for your child’s education or saving for your retirement.
In general, an investment product will fall into one of five main categories called asset classes:
- Cash and cash equivalents
- Fixed income securities
- Investment funds
- High-risk investments
Each asset class has different characteristics and level of complexity. Each earns money differently and has different fees and risks. Each also has their own tax considerations. For example, the timing and amount of taxes you pay on any earnings may change if the investments are held in or out of a registered plan, such as:
- A registered retirement savings plan (RRSP)
- A tax-free savings account (TFSA)
- A registered education savings plan (RESP).
It’s important to know which account(s) works best for you and your financial goals. For more detailed information on risk, return and costs, check out the Canadian Securities Administrators Investments at a glance brochure. A tax professional can provide more information about registered plans and tax considerations. You can also find more information about registered plans on Canada Revenue Agency’s website.