|
Annuities |
An investment option where you receive a steady
monthly income (generally for life) in exchange for a lump sum
from your RRSP, RIF or LIF. |
| Asset Allocation |
A description of the major categories of
investments your
portfolio is invested in. Generally 90% of portfolio returns
are attributable to the decision as to how much is invested in:
- Cash, Bonds, Canadian and International Equities
As a rough rule of thumb we recommend starting
with your age as a percentage in bonds. Then use a tool like
the Scotia Investment Selector and our
professional advice to tailor the allocation to match your
personal profile. Visit the Scotiabank website for more
information on Asset
Allocation
|
| CCPC
Shares |
A
Canadian Controlled Private Corporation |
| Contribution Limit |
How much you can contribute to
an RRSP, generally 18% of last year's earned income. Shown
on your Notice of Assessment. |
| Dividends and Distributions |
When you get income paid out from a fund, or have
the income re-invested in the fund |
| Dollar Cost
Averaging |
A strategy to help you buy
more of a fund when it is low |
| DPSP |
Deferred Profit
Sharing Plans |
| Foreign Content |
The percentage amount of a
portfolio invested outside of Canada |
| GIC |
Guaranteed Investment
Certificate |
| Index Funds |
A mutual fund that tracks the
performance of a major stock index by including all the company
shares in that index. No manager attempts to separate the
good and poor performing companies. |
| Labour
Sponsored Funds |
A special type of mutual fund that offers
Canadian investors additional tax savings. |
| LIF - Life Income Fund |
Like a RIF, but for your
locked in RRSP (from a pension plan) |
| Managed Account
Programs |
Also known as "Wrap"
accounts, these programs make all of the investment management
decisions for you. Essentially they are large mutual funds,
but can have the benefits of wider diversification, and
customization. An example can be found on our Lifepoints
link page. |
| MER |
Management Expense Ratio - the total
annual cost of the management fees and other expenses of running
the fund. Fund returns are posted net of fees. Eg. a
fund that reports a 10% one year return, with a 2.3% MER, actually
returned 12.3% before fees, the net return to the investor is 10%. |
| NAV |
Net Asset Value per share -
essentially the share price (value of fund divided by number of
units outstanding) |
| RESP |
Registered
Education Savings Plan A tax
assisted way to save for a Canadian child's education |
| RIF - Retirement Income Fund |
One of the best options for
your RRSP at maturity, which allows you to take a regular
(taxable) income, while still deferring taxes on the remainder of
the account. |
| Risk |
The amount of volatility that
you can expect on a fund. Generally based on the historical
standard deviation (or variance) of returns over the last 3-5
years. Good examples of Risk Return charts can be found on
our Index Funds page.
Usually included in performance
reporting on funds, or by services like Morningstar/Bellcharts. |
| Spousal RRSP |
An RRSP that you contribute to
and get the tax receipt for, however the money and account is in
your spouse's name, so he/she can take it out at retirement (or
after 3 years from your last Spousal contribution) at his/her
lower tax rate. |
| SWP |
A Systematic
Withdrawal Plan |
| |
|
| Got a question? |
E-mail us at
carl_spiess@scotiacapital.com
|
