How TD helps new Canadians explore their investing options

Canada’s immigration story is one of many common threads: of building new careers, networks, households, and ultimately, that of newcomers sharing their brighter future with the next generation.

Woven together, these strands become one overarching story of building a better life. For those pursuing a new life in Canada – these days newcomers often hail from Asian countries like China, India, and the Philippines – there still isn’t one ‘templated’ pathway on this uncertain journey. And while there is a great deal of information on what to do (and what not to do), there is an equal amount of confusion around what the best choices are when it comes to newcomers investing in education, work, housing and, most importantly, their personal finances.

Enter TD, a trusted source of investing advice for Canadians since 1864. TD offers all Canadians informed insight into the various investment options they have. This is especially useful for those who are new to Canada and who may also be new to its financial markets.
Whether you are a single professional from Beijing embarking on a new career in Toronto or a family of four from Taiwan that is planning for your children’s university expenses, a TD Personal Banker can help create a blueprint for your optimal financial journey. In Canada, there are a variety of products available to investors. In today’s higher interest rate climate, some are especially useful to help lower risk, bringing new Canadians an increased sense of stability:
 

GICs

A Guaranteed Investment Certificate, otherwise known as a GIC, offers a guaranteed rate of return over a fixed period (for example, one year). You can choose how long you want to invest your money and at the end of the term, you get your original investment back plus the interest earned.

GICs currently offer higher rates than the average offered over the last couple of years. If you have funds that you have reallocated from your stock portfolio or from other asset classes, a GIC is one place to ‘park’ these funds during a period of economic volatility.

Mutual Funds

A mutual fund is a portfolio that pools the money of individual investors and uses it to buy securities, such as stocks, bonds or other mutual funds. Mutual funds are professionally managed by fund managers, who allocate the fund's assets and attempt to produce returns for investors. They can be a great option to diversify your investments at an affordable cost and come with varying levels of risk, making them a flexible option for a wide range of investors.

A TD Personal Banker can help match you with the mutual funds that best fit your current financial situation.
 

RRSPs

GICs and mutual funds are types of investments that can be held within a Registered Retirement Savings Plan (RRSP). An RRSP is a savings plan, registered with the Canadian federal government, that you can contribute to for retirement purposes. When you contribute money to an RRSP, your funds are "tax-advantaged", meaning that they're exempt from being taxed in the year you make the contribution. Any investment income earned from investments held within the RRSP can then grow tax-deferred, as long as the money remains within the RRSP until it's withdrawn.

RRSP contributions are tax-deductible, meaning that they can be deducted from your current year's tax return, potentially reducing the total amount of taxes you pay.

The idea with an RRSP is that, if you don't start withdrawals before your retirement, you may be in a lower income bracket when you retire, meaning you would pay less tax on those dollars than you would have when you earned them.
"Whether you're saving for retirement, a short-term goal or a rainy day, there is no 'one-size-fits-all' approach to investing and saving," said Pat Giles, Vice President, Savings & Investing Journey at TD. "That's where personalized advice comes in. A TD Personal Banker can help you create the right plan based on your needs. Even in times of economic uncertainty, it's important to prioritize your financial future. No amount is too small to start saving or investing."

TD offers Canadians a range of resources to help Canadians get started on their investment journey, including:

• The TD Ready Advice Hub, which has information and articles available about a variety of financial topics, including investing

• The TD International Student GIC Program, which allows prospective students to fulfill Canada’s GIC requirement outlined in the expedited study permit processing program

• A TD mutual fund information page to find the right fund that can help meet their unique needs
To learn more and speak to a TD Personal Banker about your investment journey and making smart investments, you can book an appointment.

For more information go to TD Advice Ready Hub (https://www.td.com/ca/en/personal-banking/ready-advice)