Investments

Several types of investments are possible with Peak Investment Services Inc.

A mutual fund is an arrangement under which shares or units are sold to raise capital. Investors purchase units if the mutual fund is a trust or purchase shares if the fund is a corporation. When you invest in a mutual fund, your money is pooled with the money of other investors and invested on your behalf by the fund manager. Mutual fund trusts and corporations are also known as flow-through entities. For tax purposes, a flow-through entity treats the taxable income earned inside the entity as if you held the investments directly, instead of through the fund. The income that is distributed, or flowed out to you, keeps its identity. For example, dividend income remains dividend income, and capital gains remain capital gains when they are flowed out (or distributed) to investors.

Advantages of mutual funds :

  • Diversification
    Mutual funds invest in a broad range of securities and asset classes

  • Professional management
    Specialized knowledge and research in the purchase and sale of securities

  • Convenience
    Own a diversified portfolio with a single purchase

  • Ease of investing
    Investors can purchase, sell or alter their investments on any business day

  • Purchasing power
    Only wealthy investors can accumulate positions similar to mutual funds

  • Liquidity
    Investors can easily sell shares at any time

  • Flexibility
    There is a fund to match almost all investment needs

  • Record keeping service
    Confirmation of transactions and documents required for tax purposes

  • Investor protection
    Mutual funds are highly regulated, providing investors with industry operating standards

  • Distribution Options
    Profits distributed to Unitholders in several advantageous ways

  • The benefits of tax deferral
    Corporate Class funds offer further opportunity to defer tax outside an RRSP

We give you access to all types of mutual funds.

For more information, visit the Canada Revenue Agency.
-* Distributed by Gérald Desjardins adn Peter D. Stewart, Mutual Fund Representatives registered with PEAK Investment Services Inc.

These funds are investments through a life-insurance company. Often called Variable Annuities, these funds offer capital proctection at maturity or at death. In provinces other than Quebec, you can designate a beneficiary for estate planning purposes.

Segregated funds provide partial or full capital guarantees:

  • After 10 years; or
  • Upon death; and
  • The option to designate a preferred beneficiary.

Registered Retirement Savings Plan (RRSP) An RRSP is a retirement plan that we register and that you or your spouse or common-law partner establish and contribute to. Deductible RRSP contributions can be used to reduce your taxable income.

Any income you earn in the RRSP is usually exempt from tax for the time the funds remain in the plan. However, you generally have to pay tax when you cash in, make withdrawals, or receive payments from the plan. Federal laws oblige you to convert your RRSP (which allowed you to grow your retirement nest egg tax free), to a RRIF (Registered Retirement Income Fund) no later than December 31st in the year you turn 71 years of age. Note that you can convert an RRSP to a RRIF before you turn 71 if you choose to. A RRIF is similiar to an RRSP in the sense that you may choose to keep the same investments within the plan, which continue to grow tax free. The only difference is that with a RRIF you are obliged to withdraw a certain minimum amount every calendar year. The minimum amount varies from year to year and is based on your age.

For more information, visit the Canada Revenue Agency.

The Home Buyers' Plan (HBP) is a program that allows you to withdraw up to $20,000 from your registered retirement savings plan (RRSPs) to buy or build a qualifying home for yourself or for a related person with a disability.

You might be regarded as a first home buyer if you own a residential rental property or you have not recently owned a home

You can consider the HBP even if you do not currently have an RRSP.

For more information, visit the Canada Revenue Agencyor the Autorité des marchés financiers.

The Lifelong Learning Plan (LLP) allows you to withdraw amounts from RRSPs to finance training or education for you or your spouse or common-law partner.

You cannot use the RRSP funds to finance your children's training or education, or the training or education of your spouse or common-law partner's children.

You can withdraw up to a total of $20,000 from our RRSPs.

  • Up to $10,000 in a calendar year, and
  • Up to $20,000 in total.

For more information, visit the Canada Revenue Agency.

An RESP is a type of plan which encourages savings for your childrens education after high school. The federal government participates to the program by giving a 20% grant on contributions. This tax-sheltered plan grows tax-free(like RRSPs), until the child enrols in post-secondary education.

Starting in 2007, there is no annual limit for contributions to RESPs.

  • For each beneficiary, the lifetime limit on the amounts that can be contributed to RESPs is $50,000.


For more information, visit the Canada Revenue Agency.

A RRIF is an investment plan, established in accordance with Government of Canada requirements, into which you can transfer registered funds (usually your RSP) without tax liability for the purpose of establishing an income stream for life.

With a RRIF, starting the year after the plan is opened, an annual minimum payment must be taken each year and is considered taxable income. The year the plan is opened a payment does not have to be made, but you are free to withdraw any amount (however, in this case, withholding tax will apply to the full withdrawal amount).

The annual minimum payment that must be taken from a RRIF each year is determined by the Income Tax Act and is based on age. Your own age or your spouse's age can be used to calculate the annual minimum payment. Using the younger of the ages will result in a lower annual minimum payment. This means less money will have to be withdrawn and taken into taxable income for the year and more remains in the RRIF earning tax-sheltered income.

For more information, visit the Canada Revenue Agency.

Registered account to which sums from a supplemental pension plan or a life income fund (LIF) are transferred. Unlike a registered retirement savings plan (RRSP), funds in an LIRA are locked-in, that is, with some exceptions, the funds cannot be withdrawn. They must be used solely to provide retirement income by the purchase of a life annuity or transfer to a life income fund (LIF).

For more information, visit theRégie des rentes du Québec.

LIFs are investment vehicles intended to disperse the assets that have accumulated in a locked-in RSP (LIRA or LRSP). Like a RRIF, a LIF has a minimum amount that must be withdrawn every year.

However, in contrast to a RRIF, a LIF also has a maximum withdrawal limit per year.

For more information, visit theRégie des rentes du Québec.