Life can be complicated, investing doesn't have to be.
Do I need more than my pension for retirement?
How can I invest for my child's education?
Start an education fund with RESPs.
What can I do to minimize my taxes?
How can I save for a big purchase?
Build a scenario, find out if you can.
Pick a topic and we can point you in the right direction.
Choose a topic Assess your investment risk threshold. Starting a family? Estate planning is key. How you can benefit from market volatility? What are six key questions in building my portfolio?
Getting the most out of retirement.
Transitioning from work-life to retirement takes a bit of planning and decision-making to ensure you make the most out of this time in your life.
After putting years into your career in the education community, not to mention a portion of each paycheque going into your pension, no one wants surprises. But, retirement isn't what it used to be, educators retire earlier than most, and are retiring healthier and living longer. Planning and preparation are the primer for a rich and successful transition to make sure that you have the level of income you need to actually enjoy a long retirement. Many educators are surprised when they discover that they have a gap – will your pension alone be enough to support your retirement?
Your retirement income is determined by when you start saving and how much.
Avoid becoming a last-minute saver. We have strategies to help get your retirement income in line with your dreams and make your retirement a reality. Find out how much you'll need with our retirement income tool below.
Check with OTPP or OMERS for your amount.
* It is assumed that any pension amount taken before the age factor is reached, has already been reduced by your pension provider. It's assumed OAS/CPP is taken at age 65. This calculator is designed for illustrative purposes only. Contact an Educators Financial Specialist to create a retirement readiness plan specifically for you.
And here's the mix of investment products and account types we recommend. Explore them below.
Making smart investing decisions to build your child's education fund, and their future shouldn't come at a cost — to you or to them. Plan for tuition, living, and trips-home-to-see-parents costs.
As long as you keep the savings and investment earnings in your RESP, your money grows tax free. Withdrawals, when your child (or even your grandchild) enters post-secondary education, are also usually tax free. With an account lifespan of 35 years (it must be closed in the 36th year), diverse investment options for every risk level, tax benefits, and the ease with which to set up a family, group or individual plan, makes RESPs the easiest decision you'll make for your child's future. Not to mention that you will also be able to take advantage of the Canada Education Savings Grant (CESG) offered by the government. It provides people who invest in an RESP with a basic CESG amount equal to 20% of yearly contributions, up to an annual maximum of $500 per eligible child, with a lifetime maximum of $7,200.
How much should you invest for your child's education?
The future cost of education depends on a few things, like your child's age, how long they want to spend in school and, of course, where they plan on studying. RESPs have a max contribution of $50,000 per beneficiary. Find out how to get there.
* The maximum monthly contribution for this calculator is $208. A $208 monthly contribution optimizes grants matched by the federal government.
Maximizing returns by minimizing taxes.
Who wants to think about paying a tax bill when you've got bigger things—like life goals—on your mind?
We tend to forget (or not think about) the taxes on investment earnings but the reality is that being tax efficient with your investing means you'll have more money left over for yourself to do the things you want do to. Knowing which investments should go in tax-deferred accounts and which shouldn't, can be tricky. And, if you are receiving a gratuity payment, you will need to plan on how to minimize the taxes you pay on the additional income. Having a financial specialist with expertise in tax efficient investments is nice, combine that with our educator-specific investment strategies is better.
Tax efficient investing isn't jargon. See what we mean.
Being tax efficient with your investments can often be the difference maker in reaching your financial goals. See in this example how a little planning and insight can go a long way in maximizing your returns.
Investing and saving for a big purchase.
Reach your goals faster by putting your money to work with investments or high interest savings accounts.
A wedding, a renovation, a new house, a dream trip. Whatever your goal, you can get there faster by investing your savings rather than squirrelling it away in a low-interest bank account. Your goals, whatever they might be, all require different time horizons and dollar amounts to achieve them. Even if you don't have a lot of extra cash because alot of it goes into your pension, our specialists can help you figure out how to invest and how much to save each month and get to your goals faster.
Compare traditional bank savings account with a goal-based investment strategy.
There are many different ways of achieving the goals you want with a higher rate of return than a traditional bank savings account. Let's take a look at an example.
Assess your investment risk threshold.
Markets change daily, your goals shouldn't.
Change is the hallmark of investment markets. Just because they change constantly doesn't mean your personal goals should as well. Creating an investment plan and staying the course builds wealth over the long-term. It's easy to fall into the trap of making emotionally-charged decisions. These come in a variety of flavours but the two most common are: 1) timing the market, and 2) panic selling. Timing the market means that investors think they can follow a buy-low, sell-high strategy. However, during market volatility, investors typically will do the exact opposite and will sell low, only to gain confidence and buy again when prices are higher, thus severely limiting future returns. Panic selling can make it emotionally difficult for investors to re-enter the market, thus missing out on potential gains. An important component of an investment plan is to understand your personal risk tolerance—both financial and emotional. At Educators we can help you determine your risk threshold and design an investment plan that's right for you.
Starting a family? Estate planning is key.
Estate planning is not an elective subject.
As education members, planning is your forte, yet some of us shy away from making an estate plan. Estate planning ensures that, should you become incapacitated or die, your beneficiaries will receive your assets in a timely-and tax-efficient manner. A comprehensive estate plan should include an up-to-date Will and Power-of-Attorney. It may also include Power-of-Attorney for Personal Care and/or a Trust.
At Educators Financial Group, we are committed to providing members of the education community with financial advice and services to fulfill their unique needs. To find out more about estate planning, visit The Learning Centre.
How you can benefit from market volatility?
A pre-authorized contribution plan (PAC) is a fixed contribution at regular intervals to your investment account. During periods of down market volatility, a PAC makes your money go further because you are able to acquire more mutual fund units and lower the overall cost base of your investments.
What are six key questions in building my portfolio?
1. What are your life goals?
We all have things we wish to accomplish—whether it's taking a dream vacation, taking a leave (4 over 5), or buying your first home. The time horizon for each goal is different, therefore the investment products in your plan should reflect this. A solid investment plan addresses short-, medium- and long-term goals.
2. What is your risk comfort level?
Markets constantly fluctuate but your blood pressure shouldn't go along for the ride. At Educators Financial Group, we help clients measure and understand their risk tolerance. This way, your investment plan reflects both your financial but also your emotional tolerance for market swings.
Mutual Funds offer an easy way to diversify your portfolio across these asset classes and share in the returns of the many companies within each asset class, regardless of your account size.
Typically, when economic conditions have a negative effect on one asset class, another class may rise, or experience a more moderate drop. By spreading your risk across different asset classes, your portfolio is protected from excess volatility. Within each asset class, you can further diversify by choosing different types of investments.
4. Do you review and re-balance your portfolio annually?
Life goals and circumstances change. At a minimum, portfolios should be reviewed and, if needed, re-balanced annually. Be pro-active with your investments. Think of yourself as the CEO of your portfolio. When you experience a major life change, such as marriage or divorce, an addition to the family or a role/school board change or health change, consult your advisor. At Educators, we are here to help you reach your financial goals.
5. Do you stick with your investment plan?
Once you have established your investment plan, all you need to do is stay the course. Markets go up-and-down. But don't fall into the trap of reacting to every market change. The best way to build wealth over the long-term is to make regular contributions to your investment plan, regardless of current market levels.
6. Are you working with the right advisor?
At Educators Financial Group, we understand the unique needs of the education community. We will coach you to clarify your goals, understand potential risks and to establish realistic timeframes. Our financial specialists put your interests first— which is as it should be.
Educators Financial Group has a team of experienced financial specialists who can help you get started on your portfolio, whether you're starting from scratch, or just want a second opinion on the investments you already have.
Call us today to speak to a Financial Specialist.
We understand the professional lives of educators. Through that understanding, we aim to make your personal lives richer. A diverse portfolio of investing strategies and account types to help you reach your goals, coupled with salaried certified financial planners, and partnerships with professional portfolio managers, adds up to expert advice and unbiased recommendations to help you create the life you want.
Want maximum flexibility and control over your investments? Open a non-registered account today.
Educators understands our members' unique investment needs. For example, many of you retire early. To make your retirement as enjoyable and productive as it can be, it's important to build up savings in addition to your pension and RRSP. A Non-Registered Investment Account is ideal because it gives you maximum flexibility and control. It is also a tax-advantaged way to grow your retirement nest-egg because capital gains and dividends are taxed more favourably than salary income and interest. Which means you get to keep more of your money when you need it most.
Receive the Federal Dividend Tax Credit when you invest in eligible Canadian companies that pay dividends.
You control the timing of deposits and withdrawals.
More tax efficient—capital gains and dividends are taxed less than interest and income.
Need a RRIF strategy for a happy retirement?
Your RRSP will "mature" when you turn 71. The most common option is to convert your RRSP into a Registered Retirement Income fund (RRIF). RRIFs allow you to receive a regular stream of income during retirement. You can withdraw funds as needed, subject to a minimum withdrawal amount based on your age. RRIFs can contain any mix of assets, giving you a high-level of control over your investments.
RRIFs are registered with the Canadian Revenue Agency.
When money is withdrawn from a RRIF it is taxable as income.
Spreading RRIF payments out over time can lower your tax liability.
The value of a RRIF can be transferred to a beneficiary on owner's death.
Tax-deferred saving for school? It's a no-brainer.
A good education is a great investment. Contributing to a Registered Education Saving Plan (RESP) allows you to help your children or grandchildren fund their post-secondary education. There is a lifetime maximum of $50,000 per beneficiary but no annual maximum contribution. As an incentive, the federal government offers the Canadian Education Savings Grant (CESG) of up to $7,200, in addition to your maximum contribution. Investment growth inside a RESP is tax-deferred until your beneficiary withdraws it.
Contributions to RESPs are not tax-deductible.
Contributions can be made up to 31 years; plan must be collapsed within 35 years of start.
More than one beneficiary can be named.
If beneficiaries do not attend a post-secondary institution, up to $50,000 can be transferred to the contributor's RRSP, if room allows.
Ready to start tax-free saving and investing?
Tax-Free Savings Accounts (TFSAs) are pretty much perfect. As the name says, any growth, whether interest or capital gains, is tax-free when you make a withdrawal from your TFSA. Whether you need emergency funds, or a tax strategy to avoid being over-taxed on gratuities, TFSAs allow you that flexibility.
Annual contribution limit is $6,000.
Unlike a RRSP, you can make contributions throughout your life.
No income tax deduction for TFSA contributions.
Unlike a RRSP, your TFSA contributions can be from any source of funds, not only employment income.
The good news: we're living longer. Consequently, we have to fund our longer retirement. Registered Retirement Savings Plans (RRSPs) help us save for retirement in two important ways. First, RRSP contributions are tax-deductible. Second, income we earn inside the RRSP is tax-deferred until we withdraw it. The less tax we pay today, the more money we have to invest and to grow. A little planning now makes for a happier retirement later.
RRSPs allow us to invest and compound returns with tax-sheltered money.
Unlike employer pensions, RRSPs are unaffected by job transfers or job loss.
RRSPs can fund an early retirement or an extended leave of absence.
Spousal RRSPs can help lower a couple's tax rate.
A locked-in retirement account (LIRA) is similar to an RRSP, except it holds your pension from a previous, not current, employer. Unlike an RRSP which allows withdrawals before retirement, the funds in a LIRA are locked-in until you retire or turn 71. If you have changed jobs or careers throughout your life, LIRAs can help protect your pension.
Once a LIRA is created, you can no longer make contributions to it.
Under certain conditions, such as reduced life expectancy, low income, or a low balance, you may be able to withdraw funds from a LIRA prior to retirement.
At retirement or at age 71, a LIRA must be converted to either a Life Income Fund (LIF), Locked-in Retirement Income Fund (LRIF), or a Prescribed Registered Retirement Income Fund (PRRIF).
LIFs give you flexibility and control over your retirement income. Learn more.
Just like a RRSP is converted to a Registered Retirement Income Fund (RRIF) at retirement, a Locked-In Retirement Account (LIRA) is converted to a Life Income Fund (LIF). But there are a few twists. Whereas you can convert your RRSP into a RRIF at any age, there are minimum age requirements for establishing a LIF, usually 55 years old. There are minimum and maximum annual withdrawal limits. Like RRIFs, LIFs allow you to choose the types of investments held within them.
LIFs may be purchased with locked-in retirement savings from a LIRA or another LIF, or other locked-in pension funds.
The maximum you can withdraw from a LIF is based on an annuity formula to age 90; this prevents you from cashing out early.
LIF payments are taxed as income in the year they are received.
Find out which GIC is right for you.
There are few guarantees in life. Fortunately, guaranteed investment certificates (GICs) are one of them. GICs guarantee your original deposit and pay interest for a fixed term. At Educators we understand that your income may vary. We offer a variety of GICs with different terms and interest payments schedules.
*Below are our best rates on GICs. Rates are subject to change, some conditions apply. Speak to a financial specialist for full details.
GICs offer higher interest rates than term deposits and savings accounts.
Both your original deposit (principal) and your interest payments are guaranteed.
Unlike equities, GICs provide a predictable and secure source of income.
The Canada Deposit Insurance Corporation (CDIC) covers GICs with terms of 5 years or less.
You choose the frequency of interest payments (monthly, semi-annual, annual).
GICs can be used as collateral for loans.
GICs can be renewed at maturity.
Some GICs may be redeemed early in the case of specific emergencies.
Looking for principal protection and returns? PPNs may be for you.
Principal Protected Notes (PPNs) are similar to bonds. When you buy a PPN, you are actually lending the issuer, usually a bank, money (principal) to invest. At maturity, your original deposit is returned, along with any interest. PPNs are designed to protect your capital and give you a better return than a conventional GIC. Your deposit is guaranteed by the bank but interest payments may vary depending how well the investments perform.
Your original PPN deposit is guaranteed by the issuer, not the CDIC.
The principal protection feature means returns may be lower than investing in equity mutual funds.
PPNs have maturity dates from 5-12 years.
Gains in PPNs held to maturity are taxed as interest income.
HISAs give you flexibility and control over your money. Find out more.
Do you want easy access to your money as well as interest payments? The High Interest Savings Account (HISA) through Educators may be the answer. HISAs pay a competitive interest rate, calculated daily and paid monthly. Unlike term deposits or GICs, you can easily access HISA funds. A HISA can be held in any registered (RRSP, LIRA, RESP, TFSA), or Non-Registered account.
ISAs are a good source of emergency funds, or for anticipated expenses in the near future.
ISAs are insured by the CDIC up to $100,000 (principal and interest).
While you are deciding on your investment strategy, the money in your ISA continues to grow.
A savings account can be an important part of a balanced and diversified investment plan.
Maximizes the long-term capital growth.
This fund is suited to investors who want to maximize the long-term potential growth of their capital. They have a long-term investment time horizon, and prefer a medium tolerance for investment risk.
Find out more about this portfolio.
Maintains a balance of investments across several asset classes.
Provides long-term capital growth with low to moderate interest income.
This fund is designed for those investors who want long-term growth of their capital and low to moderate interest income. They have a long-term investment time horizon, and prefer a medium tolerance for investment risk.
Invests primarily in mutual funds that invest in securities of Canadian and foreign governments and corporations.
Low to moderate interest income.
Potential for long-term capital growth.
Provides a balance of interest income and long-term capital growth.
This fund is appropriate for investors who want to earn a balance of interest income and long-term growth of their capital. If they have a medium-term investment time horizon, and prefer a low to medium tolerance for investment risk, it's the right choice.
This fund is suitable for those who want interest income as well as some potential for low to moderate long-term growth of their capital. It's ideal for those with a low tolerance for investment risk, who have a medium-term investment time horizon.
Potential for low to moderate long-term capital growth.
Preserve capital and produce regular interest income.
The Educator Money Market fund invests primarily in Canadian government treasury bills and high-quality short-term Canadian corporate debt instruments maturing within one year. At Educators we understand that income can sometimes be irregular. Money market funds allow you to access your money easily while still getting the benefit of competitive returns.
Money market funds are the least risky of all mutual funds and provide a moderate level of income.
It's easy to access your funds making them ideal for all types of investors.
Earned interest is either paid out or reinvested in additional units.
Provide income with lower volatility than longer-term bonds.
The Educators Mortgage & Income Fund seeks to achieve diversification of assets by investing in high quality fixed income securities including mortgages, mortgage related securities, corporate and government bonds. At Educators we understand that your income may fluctuate. The Fund provides a steady stream of income to smooth out a variable cash flow.
Returns are a mix of income and capital gains.
This fund provides a steady stream of income from both mortgages and bonds.
Tax-efficient when held in a registered account such as, RRSP, TFSA, RRIF, RESP, LIRA.
The Educators Bond Fund invests primarily in fixed-income securities of Canadian governments and corporate issuers. It provides a stream of income.
The Fund provides a steady stream of income from both mortgages and bonds.
Bonds are less risky than equities; the Fund helps to smooth out fluctuations in the equity markets.
Maintain stable asset growth with lower potential volatility of return than growth investments.
The Educators Balanced Fund invests in a mix of short-term fixed income securities, common and preferred shares, index participation units and bonds. Up to 30% may be invested in foreign equities. Its asset mix will vary according to the economic and market outlook. Balanced funds add diversification to your portfolio across asset classes and protect it from excessive market risk.
The Fund generates both income and capital growth.
Over the long-term, total returns are typically higher than fixed-income funds alone.
Returns are a mixture of income, capital gains, and dividends.
Provide a consistent stream of monthly income and some capital appreciation.
The Eduators Monthly Income Fund invests in a portfolio of fixed income, investment trust units and equity investments. Up to 30% may be invested in foreign equities. A predictable and steady flow of monthly income can smooth out a period of irregular cash flow to help cover recurring expenses.
The Fund provides a moderate level of monthly income.
The Fund is appropriate for anymore who wants a more predictable monthly income.
Provide tax-efficient dividend income with long-term capital growth.
The Educators Dividend Fund invests primarily in dividend-producing preferred and common shares of Canadian corporations as well as debt securities. Up to 25% may be invested in foreign equities. It offers good diversification and investments in debt securities. Get the benefits of both growth and income with the potential for greater total returns over the long-term.
Canadian dividends provide tax-advantaged income.
High-quality dividend-paying companies have a history of consistent dividend payment and dividend growth.
Dividend-paying equities provide the possibility of capital gains in addition to dividend payments.
Provide above-average long-term capital growth.
The Educators Growth Fund invests in growth-oriented medium and large size companies that have strong management, above-average earnings growth and a reasonable valuation. Up to 25% may be invested in foreign equities. Historically, equity funds have provided above-average, long-term capital growth.
Gains are tax-advantaged in the form of capital appreciation and dividends.
Growth-oriented equities tend to out-perform other asset classes, such as bonds, over the long-term.
A portfolio of income (from dividends) and growth (capital appreciation) helps protect your portfolio from excessive downside risk.
Provide broad exposure to growth opportunities in the US.
The Educators U.S. Equity Fund invests in equity securities of established U.S. companies providing broad exposure to economic growth opportunities in the U.S. market. Equity funds have historically provided above-average, long-term capital growth.
Returns are a mixture of income, capital gains and dividends.
Smaller companies tend to have a higher potential for growth than large, established ones. Since these companies typically reinvest profits into expansion, they rarely pay dividends.
Small Cap funds are focused on capital gains rather than income or dividends.
Small Cap funds can increase total returns in your portfolio.
An allocation to Small Cap funds adds the advantage of diversification to your portfolio.
International funds invest in global equities, excluding those within Canada. These funds diversify against domestic bias and country-specific risk. Proper diversification offers the best risk/reward balance with greater potential for long-term capital growth and less volatility.
Gain exposure to sectors and high-quality companies located outside Canada.
Index funds offer cost-effective exposure to global markets.
An allocation to International Equity adds the advantage of diversification to your portfolio.
These funds invest in global equities, including those within Canada. By diversifying investments outside the country, there is greater potential for capital growth on a global basis and lower country-specific risk. These funds offer exposure to high-quality international companies.
Gain exposure to industry sectors not available in Canada.
Gain exposure to high-quality companies located outside Canada.
Smaller companies tend to have a higher potential for growth than large, established ones. Furthermore, some of the fastest growing companies are now located outside Canada.
Global Small Cap funds are focused on capital gains rather than income or dividends.
Global Small Cap funds can increase total returns in your portfolio.
Global Small Cap funds add the advantage of geographical and sector diversification to your portfolio.
The United States provides a wealth of investment opportunities not found in Canada. Many U.S. multi-national companies also offer global exposure. Geographical diversification is important for reducing risk in a portfolio.
Gain exposure to high-quality, multi-national companies for income and capital growth.
US Equity can be held in registered and unregistered accounts.
US multi-national companies with global exposure bring added diversification to your portfolio.
Fixed income funds help you preserve your capital. This is especially important during economic downturns. They are interest-bearing and deliver a modest return over the long-term.
Lower risk compared to equity funds.
Benefit from capital preservation during market downturns.
Fixed-income funds diversify your portfolio and reduce risk.
Unbiased and easy to understand financial advice includes being transparent about the fees that impact the investments you have with us. We have some of the lowest fees in the industry and here's why.
Learn about how fees can impact your investments.
While we offer a diverse range of investment products, we believe that active management and strict oversight of the portfolio manager's performance will lead to solid returns and help manage risk over market cycles. That is why we offer the Educators family of mutual funds. This way, we are able to select and partner with portfolio managers who have a proven track record in varying market conditions and extensive institutional pension plan experience.
Our service is designed with the education community in mind.
Evening, early morning — even lunch time appointments just scratch the surface of the kind of experience we want you to have with us. We're here to make your financial goals a reality in the most convenient way possible.
We understand your unique needs as an educator. Our goal is to work with you to help you achieve your financial goals, while navigating pension income fluctuations and potential gaps. We take a practical and team-based approach of reducing risk while balancing your life goals with a sound investment strategy.
With a PAC, a pre-arranged amount (determined by you) is withdrawn from your chequing account on a regular timeframe, such as weekly, biweekly, semi-monthly and monthly, then deposited directly into your investment account. That's the beauty of a PAC – it's automatic and you control how much you want to contribute.
Making contributions to your account(s) has never been easier. Simply add "Educators Financial Group" as a bill payee to your personal online banking account. Now you're ready to transfer cash from your bank account to your Educators' RRSP, RESP, TFSA, and Non-Registered accounts.
We want to provide "Smarter, Faster, Greener" solutions when it comes to everything from the products we offer, to the way you receive information from us. Sign up to access your account through our client portal and request paperless statements. It's that easy!
Why wait to plan your future?