Page 9 - A Canuck's Guide to Financial Literacy 2020

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Step 3 - Choose the Investment Vehicle

In Canada, we have the option to invest our funds in many investment vehicles such
as Registered Retirement Savings Plan, Tax Free Savings Accounts, Registered Education
Savings Plan and much more! Depending on your goal, it’s important to choose the right
type of account that will help you achieve your goal.

▪ If your goal is to save for retirement, then a Registered Retirement Savings Plan will
make sense

▪ If your goal is short term in nature, then a Tax-Free Savings Account will work.
▪ If you’re thinking about saving for your child’s university, then a Registered Education
Savings Plan will help you get there
▪ If your goal is to save on taxes each year, then a Registered Retirement Savings Plan
and a Tax-Free Savings Account could help you do that

Each goal is unique and there is no all in one solution. A proactive investor would take
advantage of all possible investment vehicles as they would have more than one goal.
We’ve broken down each type of account in detail throughout the book.

Step 4 - Choose Your Investment

Inside your investment vehicle, you can purchase thousands of investments and the list to
choose is endless. The investment that you choose should align with your risk appetite
mentioned above. Essentially, whatever you choose will most likely have a combination of
stocks and bonds also known as equities & fixed income, discussed below.