iA Securities & HollisWealth* are now iA Private Wealth

We are excited to introduce our new company name, iA Private Wealth. The new name is designed to better reflect the essence of what our advisors do – provide holistic wealth management solutions tailored to the unique needs and goals of investors across Canada.

Please take a few moments to browse our newly redesigned and updated website to learn about the many benefits of working with an iA Private Wealth Investment Advisor.

*Refers solely to the Investment Industry Regulatory Organization of Canada licensed advisors within HollisWealth.

Your Wealth, Our Passion

Building, growing and preserving wealth takes planning and a comprehensive, holistic vision. When you work with an iA Private Wealth Investment Advisor, you have a trusted partner who is fully dedicated to your success at every stage of your lifelong financial journey.

Holistic planning for every facet of your life

We believe comprehensive personal wealth planning, supported by unbiased advice, collaboration and transparency, is the key to meeting your needs and helping you achieve your goals. Our advisors focus on six main priorities to create a plan that’s tailored to you:

Investing

A proven wealth management philosophy is one that takes emotion out of the equation and relies on a disciplined, long-term approach. Your objectives, risk tolerance, return expectations and time horizon will be the key factors your Investment Advisor takes into account in designing a plan that can help meet your retirement and other goals.

Saving & borrowing

Your Investment Advisor will help you set and achieve saving goals aligned with your needs and objectives, and develop a borrowing and debt management strategy for your unique circumstances.

Education planning

Whether you’re looking to fund a child’s education or returning to school to upgrade your credentials, your Investment Advisor can help you understand your options and maximize the value of a Registered Education Savings Plan (RESP).

Tax planning

Your Investment Advisor will conduct a thorough assessment of your circumstances to determine the most tax-efficient way of building your portfolio.

Risk management

Your Investment Advisor will develop a risk management plan that addresses the full range of factors that could affect your financial well‑being.

Will & estate planning

To plan for the preservation and transfer of your assets, your Investment Advisor can help you keep an eye on the horizon by understanding your situation and wishes, including tax-efficient legacy planning.

Latest insights

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Give Your Child the RESP Advantage

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By iA Private Wealth, September 22, 2021

As the school year begins, many parents devote more thought to saving for their child’s post-secondary education. Truth is, it’s always a good time to think about funding education as the cost of schooling continues to rise.

One of the best ways to save for post-secondary education is through a Registered Education Savings Plan (RESP).

How RESPs work

There are two types of RESP accounts: individual and family. As long as the person opening the account (the subscriber) and the beneficiary (student) reside in Canada, anyone can open an individual RESP account. The subscriber of a family RESP must be the beneficiary’s parents or grandparents, but an advantage of family RESPs is that the plan may be designated for one or more children in the family.

You can contribute any amount to an RESP in a given year, but keep in mind the current lifetime limit is $50,000 per RESP beneficiary. While RESP contributions are not tax deductible, any investment growth within the plan will compound on a tax-deferred basis until the beneficiary heads to college or university.

To encourage saving for education, the federal government matches up to 20% of contributions each year – until the beneficiary turns 17 – through its Canadian Education Savings Grant (CESG) program. The maximum annual grant is $500 and the CESG lifetime limit is $7,200. If you don’t take full advantage of the CESG in a given year, any unused grant room may be carried forward, to a maximum of $1,000 granted annually.

The earlier you contribute to an RESP, the more your child will benefit from compound, tax-sheltered growth. RESP contributions can be invested in a wide range of products, including mutual funds, ETFs, stocks and bonds. Your Investment Advisor can help you decide which investments are suitable for your particular circumstances.

5 common RESP questions

  1. How many RESPs can I open?
    You may open as may plans as you wish at different financial institutions, but the lifetime combined contribution limit of $50,000 per beneficiary remains.
  2. How does my child use RESP funds?
    Contributions may be withdrawn to pay for the child’s qualifying post-secondary education program. Withdrawals from CESG (and other) grants, or the interest earned, can be used to pay for tuition, books or transportation. These withdrawals are taxed in the hands of the beneficiary, who is typically in a lower income tax bracket.
  3. Can I transfer an RESP to another child?
    Yes. For example, if one child does not attend post-secondary school, you may change the RESP beneficiary or add another child to an existing family RESP.
  4. What happens to unused RESP funds?
    RESPs mature after 36 years and unused contributions are returned to the subscriber. Any income from the contributions may be transferred (up to $50,000) to the subscriber’s (or their spouse’s) RRSP, or taxed at the marginal rate plus a 20% surtax. Unused CESG-related funds must be repaid to the government.
  5. Can I withdraw RESP funds?
    Contributions can be withdrawn tax-free at any time by the subscriber, but certain restrictions may apply on future CESG payments.

An RESP is a great vehicle to help save for your child’s education in a tax-efficient manner. To learn more, speak to an iA Private Wealth Investment Advisor.

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Investing as a Post-secondary Student

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By iA Private Wealth, September 15, 2021

Apartment rented for the school year? Check. Class schedule finalized? Check. Laptop in good working order? Check. Investment portfolio optimized? Check.

If the last point seems out of place to you, you’re not alone. Most post-secondary students have many things on their mind, but investing usually isn’t one of them.

It should be. Paying bills and managing student debt are legitimate concerns, but so is planning for the future. As life progresses from school to career and possibly to marriage, home ownership and starting a family, building enough wealth to meet basic needs is always important.

Benefit from compounding

One significant advantage that young investors have is a long time horizon. When they start investing at an early age, they’ve got the power of compound growth on their side. As the value of their investments gradually rises, that growth in invested capital will grow as well, and it’s this ongoing compounding that results in accumulated wealth over time.

Also, having an extended time horizon means they can invest more aggressively than someone older. Why? Because when younger investors experience the inevitable short-term market declines, they have the time to stay invested and ride out these downturns until the markets resume their long-term upward trend.

This advantage allows younger investors to invest more of their money in stocks and equity mutual funds, which historically have generated higher returns than conservative securities like bonds and GICs. Rather than panic when markets become volatile, younger investors can remain disciplined knowing their long-term financial goals should not be impacted.

Getting started

Few post-secondary students have a lot of money laying around, but it’s no reason to put off investing. Maybe they received cash gifts for birthdays or other special occasions. Many students have part-time jobs during the school year and perhaps full-time work in the summer. Of course it makes sense to ease their debt load when possible to reduce interest charges, but earmarking even a few dollars per month for investing can help create long-term wealth.

Assuming they have some money available to invest, what can they do with those funds? They might consider a Tax-Free Savings Account (TFSA). If they’re at least 18 years old with a valid Social Insurance Number, they can open a TFSA at any qualifying financial institution in Canada. The maximum annual contribution amount is currently $6,000. The good thing is, if they don’t contribute the full amount each year, they accumulate contribution room for future years. Whatever investment growth is earned in a TFSA is completely tax free.

If they have employment income, they might consider a Registered Retirement Savings Plan (RRSP). They can get a tax deduction each year, which may be useful depending on their income level, but the main benefit is that any growth of RRSP assets is tax deferred until withdrawn, which is typically not until retirement.

If students aren’t sure what to invest in, they can conduct their own research to learn the fundamentals of investing. They may also consider working with an Investment Advisor who can guide them and be available to help with more complex financial issues as they progress through the various phases of life.

Regardless of what they choose to invest in, it’s often valuable to set up a pre-authorized contribution plan (PAC) that devotes a certain amount of money at pre-determined intervals (e.g., monthly). PACs are useful and convenient because they help investors be disciplined and automatically invest on a regular basis to build long-term wealth.

If you have an undergraduate student in your household, an iA Private Wealth Investment Advisor can help them prepare for their financial future. Speak to an advisor today.

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Getting Financially Fit for Your Newborn’s Arrival

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By iA Private Wealth, September 7, 2021

Having a child is an exciting time in life. Before the baby arrives, it’s useful to think about your finances, since raising a child can be both incredibly rewarding and very expensive.

While each family is different and costs vary, expect to budget roughly $10,000 to $15,000 a year until your child turns 18 – and then the potential for post-secondary education will add to this cost. Aside from expenses related to food, clothing, personal care, toys, activities, etc., your daycare/babysitting costs largely depend on where you live and how many hours of supervised care your child will require.

Funding your family addition

Clearly, the more money you can put away, the better your financial situation will be when baby enters the picture. You don’t have to do it all on your own, however. Family and friends might be able to help with gifts, babysitting and hand-me-downs, plus you may qualify for government support.

Parents who are away from work to look after their newborn or newly adopted child may receive up to 55% of their earnings in standard Employment Insurance (EI) benefits, to a current weekly maximum of $595. As the chart below illustrates, parents can share the benefits. The eligible period for benefits may last from 55 weeks to 69 weeks (although ‘extended’ benefits beyond 55 weeks provide less support).

Benefit name Maximum weeks Benefit rate Weekly max
Maternity (for the person giving birth) up to 15 weeks 55% up to $595

Maternity benefits can be followed by parental benefits. You can apply for both at once.

Benefit name Maximum weeks Benefit rate Weekly max
Standard parental up to 40 weeks, but one parent cannot receive more than 35 weeks of standard benefits 55% up to $595
Extended parental up to 69 weeks, but one parent cannot receive more than 61 weeks of extended benefits 33% up to $357

Source: Government of Canada

Canada Child Benefit (CCB)

In addition to EI benefits, your family may qualify for the CCB. Payments are based on your adjusted family net income (AFNI) for the previous tax year. For the 2021 benefit period (July 2021 to June 2022), if your family’s AFNI is below $32,028, you qualify for the maximum regular CCB of $6,833 per year for children under six years old, and $5,765 annually for children between six and 17 years old. The maximum benefit gradually decreases for AFNIs above $32,028.

Given the pandemic’s impact on many families, there’s also a special 2021 CCB of $300 per quarter for children under six years old, if the AFNI is below $120,000.

Registered Education Savings Plan (RESP)

The cost of post-secondary education continues to rise. It’s good to consider an RESP, which is a savings and investing program designed to cover some of these costs. Currently, the lifetime RESP contribution limit is $50,000 per student (beneficiary). You may invest in many types of securities, from mutual funds and stocks to bonds and GICs – and the investment growth compounds, tax deferred, until the RESP beneficiary begins withdrawing assets.

As an incentive to save, the federal government offers the Canadian Education Savings Grant that matches up to 20% of your contributions, to an annual maximum of $500 and lifetime limit of $7,200.

Each province and territory has some form of student grant or loan, so it’s worthwhile to look into programs available in your area. Talk to your Investment Advisor for more details about how RESP contributions and withdrawals work.

Other things to consider

  • Review your insurance coverage when preparing to have children. You may want to upgrade your life, disability and critical illness insurance plans to reflect your family addition(s). Also, if you’re covered under a group insurance plan, your children may qualify for certain medical and dental care needs.
  • Update your will as your family grows, so you can include your children as estate beneficiaries. You may also use your will to make physical and financial care arrangements for your children in the event that they’re still minors when you (or both parents) pass away.

iA Private Wealth can help you financially prepare for your new arrival. Start by contacting your local iA Private Wealth Investment Advisor today.

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A career at iA Private Wealth

Looking for a rewarding career in financial services? We have a wide range of opportunities for talented, committed professionals, and offer attractive compensation and benefits.

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Investment Advisor opportunities

More and more advisors are looking to iA Private Wealth as the partner of choice for building and growing an independently owned and operated business with an unwavering focus on client success.

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