Investments & Savings
Grow your money with the right accounts and the right strategy — segregated funds, TFSA, RRSP and FHSA explained in plain language.
Segregated Funds
Segregated funds are investment funds offered by insurance companies. They work like mutual funds, but add insurance features that can protect your money and your family:
- Maturity and death benefit guarantees — typically 75% to 100% of your deposits are protected, depending on the contract
- Bypass probate — with a named beneficiary, money can go directly to your loved ones
- Potential creditor protection — may help protect assets, which can matter for business owners
- Registered or non-registered — hold them inside a TFSA, RRSP, FHSA or a regular account
Choose the right account
TFSA
Tax-Free Savings Account. Your investments grow tax-free, and withdrawals are tax-free too. Unused contribution room carries forward each year.
Great for: emergency funds, flexible savings, any goal.
RRSP
Registered Retirement Savings Plan. Contributions can lower your taxes today; your money grows tax-deferred until you withdraw it in retirement.
Great for: retirement savings, higher income earners.
FHSA
First Home Savings Account. Contribute up to $8,000 a year ($40,000 lifetime). Contributions are tax-deductible and qualifying withdrawals to buy your first home are tax-free.
Great for: first-time home buyers.
Nearly 100 years of market history
What happened to $1,000 invested at the start of 1928? Through the Great Depression, World War II, the 1970s inflation, the 2000 tech crash, the 2008 financial crisis and the 2020 pandemic, markets have gone down many times — but over long periods, stocks have grown far more than bonds, cash or inflation.
Every year, up and down
Stocks had a negative year roughly 1 out of every 4 years — yet the long-term trend has been upward. This is why time in the market and steady investing (like DCA) matter.
Chart log scale (each gridline is 10× the one below). Data: S&P 500 total returns with dividends reinvested, 3-month US Treasury bills, 10-year US Treasury bonds and US CPI inflation, 1928–2024, from Prof. Aswath Damodaran, NYU Stern School of Business. US market data shown for its long history; it does not include fees or taxes and is not a prediction. Past performance does not guarantee future results.
Dollar-Cost Averaging (DCA) explained
Dollar-cost averaging means investing the same amount of money on a regular schedule — for example $200 every month — no matter whether the market is up or down. Because the amount stays the same, you automatically buy more units when prices are low and fewer units when prices are high.
Example: $200 a month for 6 months
Imagine Priya invests $200 on the 1st of every month into a fund. The fund's unit price goes up and down:
| Month | Amount invested | Unit price | Units bought |
|---|---|---|---|
| January | $200 | $10.00 | 20.00 |
| February | $200 | $8.00 | 25.00 |
| March | $200 | $9.00 | 22.22 |
| April | $200 | $6.00 | 33.33 |
| May | $200 | $9.50 | 21.05 |
| June | $200 | $11.00 | 18.18 |
| Total | $1,200 | avg price $8.92 | 139.79 units |
Why it works
- Market dips become opportunities — in April, the same $200 bought 33 units instead of 20.
- No need to time the market — you don't have to guess the "right" day to invest.
- Builds a habit — an automatic monthly deposit (pre-authorized contribution) makes saving effortless.
- Less stress — you are less likely to panic-sell when prices fall.
Real example: $200 a month through two market crashes
What if you started investing $200 every month in January 2000 — right before the dot-com crash — and kept going through the 2008 financial crisis, the 2020 pandemic and the 2022 drop?
Source: S&P 500 total annual returns 1928–2024 — Prof. Aswath Damodaran, NYU Stern School of Business
The lesson: the value dropped sharply several times, but people who kept investing bought more units at lower prices — and historically, the US market has recovered from every one of these declines over time. Recovery times varied, from months to several years.
The real example uses yearly S&P 500 total returns (dividends reinvested) spread evenly across each month, so actual month-to-month swings were larger. It is US data, ignores fees and taxes, and is not a prediction or a guarantee — some markets (for example Japan after 1989) took decades to recover.
The first example is a simplified illustration with made-up prices. It ignores fees and taxes. Investment values go up and down, past performance does not guarantee future results, and in a steadily rising market investing a lump sum early may produce a higher return than DCA. Talk to a licensed advisor about what fits you.
Compound growth calculator
See how regular saving and compound growth can add up over time. Change any number and the results update instantly.
Show year-by-year table
| Year | Put in | Growth | Value |
|---|
For illustration only. Assumes a constant rate of return with contributions made at the end of each month, and does not include fees, taxes or inflation. Actual returns vary and are not guaranteed.
Ready to protect what matters most?
Get a free, no-obligation quote from a licensed advisor in Ontario or Alberta. It only takes a minute.
Disclaimer: The information on this website is for general educational purposes only and is not financial, tax, legal or investment advice. Insurance and segregated fund products are offered by licensed advisors in Ontario and Alberta and are subject to the terms, conditions, eligibility and underwriting of the issuing insurance company. Speak with a licensed advisor about your personal situation.