Insurance
What are the three types of insurance we talked about
Life, Disability, Critical illness
What does RRSP stand for?
Registered Retirement savings plan
What does TFSA stand for?
Tax Free Savings Account
What is a stock?
A portion of a company that you can buy. You will profit from the company without having to run the company
What is a mutual fund
Many investors pool their money and a manager invests it in a bunch of stocks and bonds. The manager will adjust their investing strategy as the markets change
This type of insurance pays a lump sum if you die
life
How much tax do I have to pay on the earnings of my RRSP while it remains and grows in the account?
None
Would there be any purpose in using your TFSA for a safe, low interest short term saving goal? Why or Why not?
No the only benifit a TFSA has is saving you tax money on the interest it earnes. If there is little interst earned it will not do anything
What is a Bond?
An agreement with an invester and a company to borrow money for a fixed interest rate
What is an ETF
Investors pool their money and a manager invests it for them. Investment strategy is based off an unchanging formula and will not change in different markets
Name three examples of critical ilness
Cancer, Heart attack, Stroke, MS etc
Why do you not want to take a RRSP out early?
Because it will add to your income increasing the tax you will have to pay
There is no purpose to using a TFSA if you are not investing. Is there a problem with putting non invested money in a TFSA?
Yes, you can only contribute a limited amount to your TFSA so using it improperly diminishes its use
What are the advantages and disadvantages of Stocks
High risk
Lots of research required
High reward
What is the benifit to ETFs and mutual funds
easy way to increase diversity in your portfolio. Even if you dont have that much money
How does disability insurance pay out? What form of payments?
After tax paychecks
What benefit do you recieve when you buy an RRSP?
You get the tax on that money back
What tax benifit do I recieve when putting money into a TFSA
how much tax do I pay when taking money out of my TFSA
0
Stock value- As the company grows so does the value
Dividends- The company will kick out some of its properties to its investors
What advantage does ETF have over mutual funds
Cheaper
Name one benifit of whole life insurane and one benifit of term insurance
whole does not expire
term is cheaper
How much interest does a RRSP earn?
Depends on the investment you choose, which can be ANYTHING
How much interest does a TFSA give
Depends on the investment you choose, which can be ANYTHING
Why do stock prices fluctuate so much? Dont companys usually make money?
invester speculation and market manipulation
What advantage does Mutual fund have over ETF
Actively managed, Someone will adjust my investments to the markets strengths and weaknesses