Random Terms and Knowledge Flashcards
What is a capital gain?
Profit you make when you sell something (like a house, stock, or business) for more than you paid for it.
What is a segregated fund?
An investment fund offered by insurance companies that combines market growth potential with insurance guarantees. It protects a portion of your investment (typically 75-100%) at maturity or death, bypasses probate for estate planning, and may offer creditor protection. However, it has higher fees than mutual funds due to these benefits.
What is an RRIF?
What you turn your RRSP into when you retire. It provides regular withdrawals while your money stays invested and grows tax-free. You must withdraw a minimum amount each year, and withdrawals are taxed as income. You have to convert your RRSP to an RRIF by age 71.
