Frequently Asked Questions

Investing can be scary. It is natural to have have questions. We want to answer them. We’ve put together a list of commonly asked questions. For more detailed answers or for case specific questions, contact us today.

Where is your office located?

Our office is located in downtown Courtenay. We are at the bottom of Mission Hill in the Braidwood Plaza, beside the Dodge dealership.

 

How do I know which advisor is right for me?

Finding the right financial advisor for you and your goals is crucial to your investing success. We recommend interviewing different advisors to get a feel for their: personality, temperaments and willingness to sit down with you and explain their process. Asking friends and family to refer you is one of the best ways get started. 

We invite you to dop by our office or schedule a no obligation introduction meeting today. 

How do I know if I am paying too much for my advisor?

According to regulations, advisors must be disclosing to their clients all commissions and fees they receive for handling accounts.

iA Private Wealth has taken the lead on this and all commissions are labelled right on your trading confirmation slip.

Are you paying too much or don’t know what you’re paying? Contact your advisor and have them clarify for you. Our advisors are completely transparent with their clients regarding fees and commissions and make sure they understand the impact of all fees payable in their accounts.

Can I see my account value online?

Yes!

You can access your Client Portal Login here. Registering is a simple process, you can complete in minutes. Register here today

What is an ETF?

Exchange-Traded Funds offer exposure to a diversified basket of securities. For example, an S&P 500 Index ETF provides exposure to 500 different U.S. stocks. Buying all those shares on your own would be expensive and cumbersome. ETFs are convenient and cost effective way to diversify your investment portfolio.

What are Bonds?

Bonds are an unique investments that allow you to lend money directly to the issuer at a certain rate

What is a GIC?

Guaranteed Income Certificates are a secure investment which guarantees the return of your entire investment, plus interest at a pre-determined, marginal rate. GICs are low risk investments that may have earned their place in your portfolio. There is a wide range of GICs from many different providers. As we are not a bank we have an edge in finding the best rate for your chosen term.

What is a Stock?

Stocks are used by businesses and corporations to raise captial throught the issuing of shares. Shares are then offered to the public for purchase. The valuations of these shares determine the market price for that share. Mark and Dave are both certified to trade stocks on and off the market. If you wish to purchase stocks in your account, your advisor will make suggestions based on the type of investments you would like to make and match that to your tolerated risk preference. Mark and Dave are constantly keeping up to date on current market conditions and evaluating trends to ensure that their clients are as safe as possible from volatility.

What are Mutual Funds?

A mutual fund is simply a basket that holds a variety of assets – like stocks, bonds, real estate or other securities. When you purchase units of a mutual fund, you’re buying a portion of that basket and what it holds, along with hundreds or thousands of like-minded investors.

What is the difference between ETFs and Mutual Funds?

One major difference between ETFs and mutual funds is the way they’re bought and sold. As their name suggests, ETFs are traded on a centralized exchange – just like a stock – while mutual funds are purchased from the manufacturer, typically through an investment dealer like iA Private Wealth.

Another major difference is the way ETFs are managed. The overwhelming majority are passively managed, which means the ETF manufacturer will simply replicate the entire market index. If there are 500 stocks in the index, the ETF will provide investors with exposure to those same 500 stocks with approximately the same weighting as in the index. This contrasts with the active approach of most mutual funds, where a professional portfolio manager conducts extensive research and picks a select group of securities with the goal of boosting returns or reducing risk – or both.

The third key difference flows from the second: because passive ETFs are simply replicating an existing index, there’s no portfolio manager or research team to pay, which drives the cost of most ETFs down to an extremely low level. This is one of their biggest draws. Just keep in mind the objective of such ETFs is to match an index’s return, not outperform it.

For a more comprehensive understanding, we recommend or calling or dropping by our office to discuss with your advisor the pros and cons based on your specific situation

What is an RRSP?

Registered Retirment Savings Plan is an account where you can deduct the amounts you contribute to your (or your spouse’s) plan from your taxable income, reducing your taxes for the year. Plus, no tax is paid on the investment income, dividends or capital gains generated by holdings within your RRSP.

While the withdrawals you make from your RRSP in retirement are taxable, you may by that time be in a lower tax bracket, resulting in additional tax savings.

What is a RRIF?

Registered Retirment Incom Fund is a registered investment account that’s used to provide income. In other words, you don’t make contributions to your RRIF; instead, the money you’ve saved in your RRSP goes into your RRIF to fund your retirement. As with an RRSP, earnings on the investments inside your RRIF are taxsheltered until they are withdrawn. By converting your RRSP to a RRIF, you avoid cashing in your RRSP for a lump-sum payment, which would likely result in a significant tax hit.

What is a TFSA?

Tax-Free Savings Account. Investment gains on TFSA contributions are not taxed while in your TFSA account or when you withdraw the funds. Contribution limit Annual contribution limits have varied since the introduction of the TFSA in 2009. Importantly, any room you don’t use in a given year gets carried forward indefinitely.

Why didn't I receive a contribution receipt for my TFSA?

TFSA stands for “Tax-Free Savings Account,” which is not to be confused with an RRSP or “Registered Retirement Savings Plan.” The money that you put into a TFSA does not count as a contribution against your income like an RRSP contribution does. Instead, the money that you take out of a TFSA is tax-free–meaning that you do not have to pay any capital gains tax when selling an asset or upon withdrawal.

What is an RESP?

Registered Education Savings Plan is a long-term savings plan to help people save for a child’s education after high school. Education includs trade schools, CEGEPs, colleges, universities, and apprenticeship programs. An adult can also open an RESP for themselves.

When you open an RESP, you can apply for benefits like the Canada Learning Bond (CLB) and the Canada Education Savings Grant (CESG). If the child is eligible, these benefits will be received in the RESP to help with the cost of the child’s education. Eligible expenses can include tuition, books, tools, transportation, and rent. British Columbia and Quebec also offer provincial benefits.

Have other questions? We’d love to answer them.