Investing for the Future

Pay yourself first. We hear it all the time. While that's definitely sound advice, we would add: "Pay yourself first, even before the government taxes you."

And if ever there is a time to invest in the future, it is now. It's never too early or too late to get started, but early savers get the full benefit of the "magic" of compounding. Don't let your best intentions of financial security fall victim to procrastination.

Capital Estate Planning and MGI Financial Inc. are committed to delivering a comprehensive range of products and services in a timely, courteous and professional manner, to all clients looking to enhance their personal and family's financial health.

To read about our investing services, please choose one of the options below:

» Guaranteed Investment Certificates (GICs)
» Tax-Free Savings Account (TFSA)
» Mutual Funds
» Registered Retirement Savings Plan (RRSPs)
» Registered Retirement Income Fund (RRIF) and Annuities
» Registered Education Savings Plan (RESP)

Guaranteed Investment Certificates
GICs are considered a conservative investment vehicle that provides least risk of all options available. They provide investors with a defined rate of interest over a specified investment period, typically one to five years. At Capital Estate Planning, we offer GIC's through MGI Financial Inc. and are able to offer our clients their choice of very competitive GIC rates available from a large variety of bank and investment institutions in Canada. For current GIC top rates please visit MGI Financial Inc., our dealer.

Tax-Free Savings Account (TFSA)
This new type of registered savings account may be the most important personal savings vehicle introduced since the RRSP legislation in 1957.

• Starting this year, Canadian residents who are 18 or older can contribute up to $5,000 annually to their TFSA. Contributions will not be tax deductible. However, any amounts withdrawn and gains or income generated by investments held within a TFSA will not be taxable.
• The TFSA allows for lifetime contributions with no requirements to withdraw at a certain age. Contributions can be made monthly or lump sum throughout the year.
• Any unused contribution room will carry forward indefinitely. Any amounts an individual withdraws from a TFSA in a given year will be added to his or her TFSA contribution room for the following year.
• The TFSA is a great addition to other registered savings options (ie: RRSP, RESP). They will be particularly attractive to members of any existing pension plan (ie: LAPP). In addition to your RRSP, the TFSA allows you to tax shelter up to $5,000/year. This is extremely helpful as the increasing pension adjustment each year continually erodes personal RRSP contributions for pension plan members.
• The tax-free growth from a TFSA would be a smart alternative to Canada Savings Bonds.

Uncertain of the differences between RRSPs and TFSAs? View our comparison chart for more information. Looking for tips on how to take advantage of the TFSA account? We've pulled together a document to help you.

Get started today! Contact your Capital Estate Planning representative.

Mutual Funds
Mutual funds have become the undisputed investment vehicle of choice for Canadians, and for good reason. Even if you have little money to invest, they offer an easy way to assemble a portfolio of diversified investments that match your financial circumstances and goals, and have it professionally managed at a low cost. Capital Estate Planning offers access to over 3000 domestic and foreign mutual funds, including pooled funds.

Note: Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Mutual fund securities are not covered by the Canadian Deposit Insurance Corporation or any other government deposit insurer.

Registered Products

Registered Retirement Savings Plan (RRSPs)
The RRSP has become one of the most important financial tools for Canadians. It allows investors to reduce their annual income tax bill, and is allowed to grow tax-free until withdrawal. Capital can be deposited into your choice of registered investments including stocks, GICs and mutual funds.

Registered Retirement Income Fund (RRIF) and Annuities
RRSPs must be converted to a RRIF or Annuity by December of the year you turn 71. At Capital Estate Planning Corporation, we offer a wide range of products to suit your individual profiles.

Registered Education Savings Plan (RESP)
A RESP is a tax-deferred education savings vehicle through which the federal government allows a subscriber to save money for a beneficiary's post-secondary education.

In March, 2007 the federal budget introduced two major changes to the contribution rules: The elimination of the $4,000 annual RESP contribution limit and the increase of the lifetime RESP contribution limit to $50,000 per beneficiary from $42,000.

To promote saving for a child's education and to give a boost to RESPs, the government also enhanced the Canada Education Savings Grant (CESG). The CESG, is deposited directly into the RESP itself. The maximum annual contribution that will qualify for the 20% CESG will be increased to $2,500 from $2,000, thereby increasing the maximum annual CESG per beneficiary per year to $500 from $400 for years beginning in 2007. For beneficiaries with unused CESGs from prior years, the new maximum CESG will be $1,000, based on a $5,000 RESP contribution. The $7,200 maximum lifetime CESG limit, however, remains unchanged.

Guaranteed Products

Guaranteed Investment Certificates (GIC's)
GIC's offer principal protection and guarantee the rate of return.

Principal Protected Notes
100% of the principal is guaranteed with flexible terms, low minimum investment and not locked-in.

Segregated Funds
Segregated funds are a great investment alternative for the individual who wants principal guarantee, death benefit guarantee, with options for growth or income.

Enhanced Segregated Funds
They are segregated funds with options and riders. These multi-asset, multi-manager, multi-style funds provide a 5% bonus per year during the accumulation phase (up to 10 years), and a guaranteed minimum withdrawal benefit (rider) during the retirement income phase.

For more information about investing for the future, please contact one of our financial advisors at either our Edmonton or Calgary offices.