Many have taken the Financial Peace University courses from Dave Ramsey. All of his principles are excellent and they have helped a lot of people to get out of debt.
However, all the investing information applies to the United States only.
As a person trained in financial services, I decided to explain how Canadian Investments work.
First: An investment could be defined as any use of money which has the potential of earning more money back than taxation and inflation take away.
In Canada we have savings accounts and GIC’s [Guaranteed Investment Certificates] which may earn you some money but SELDOM enough to even pay for inflation and the taxes on the interest.
However we do have investments: For our purposes we will discuss only actual money investments, not real estate, not gold, not rare coins or famous art pieces.
In Canada we can invest in stocks and bonds, mutual funds and ETF’s.
There are various vehicles which we can use to grow our money.
- TFSA’S
- RRSP’s
- RESP’S
- RDSP’S
Some have tax advantages in the present as deductions from income tax, some do not, some provide for investing in a child’s education, or possibility investing in order to provide for children with disabilities as they get older.
[more later]
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