A non-registered account, often referred to as an OPEN account, can play an important role in your overall investment strategy, enabling you to invest an unlimited amount of money in an array of investments.
Benefits
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- Flexibility: no contribution or withdrawal limits
- Liquidity: withdraw money as you please
- Short or long term goals: invest for your financial plans
- Build up wealth: own an investment portfolio that provides an income for life
- Invest in any asset you choose: stocks, bonds, GICs, cryptocurrency, gold, mutual funds, ETFs, managed portfolios, and more.
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There are three types of income in an OPEN account, each with its own tax rules:
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- Interest income: taxed annually at your marginal tax rate
- Dividends: taxed annually at a lower tax rate due to the Dividend Tax Credit
- Capital Gains: taxed at the lowest tax rate; only 50% of capital gains are included in your income, and the tax is deferred until you realize the gains
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OPEN accounts can be held inside corporations. For those entrepreneurs successfully building up wealth in their corporation this investment account is a powerful vehicle for growing your wealth.
OPEN plans can be jointly held. This is most suitable for spouses. Wealth can be grown together and the income tax split between the owners. Upon the passing of one owner the account transfers to the surviving spouse tax-free.
You cannot name a beneficiary on a Non-registered Account; upon passing away there will be a deemed disposition, and the holdings will be directed according to the instructions in your will.
OPEN accounts are a powerful tool for completing your tax, retirement and estate plans.
