So, what is a reasonable allowance for your executor, and how do you ensure they receive proper compensation from your estate? After all, you will be gone.

In this article, I’ll explain how executor compensation works and how much executors can expect to be paid. Here’s a hint: It depends on the province in which you reside.

Are Executors Entitled to Compensation?

All executors in Canada are entitled to compensation for their work in administering an estate. Sometimes, executor compensation is laid out in a person’s will. But even if it’s not, the various provincial courts will dictate the rate at which an executor will be compensated.

What Are the Responsibilities of an Executor?

The executor is the person (or persons) responsible for administering an estate for a person who has died. An executor must gather the estate’s assets, pay any debts, and ensure that the residue of the estate is paid to the beneficiaries per the will.

While some estates are straightforward, an executor’s duties can be arduous and time-consuming for more complex estates. Being an executor is a lot of work.

For example, if the deceased owned property, like a house or vehicle, the executor oversees the sale and collects the proceeds. The same goes for assets held outside Canada in a foreign country.

Executors must also arrange the funeral, apply for probate, manage estate accounts, close accounts with various institutions, prepare a final tax return, and communicate with beneficiaries, who often reside in different provinces or countries, further complicating matters.

This executor’s checklist can help you better understand an executor’s full responsibilities.

Why Do Executors Receive Compensation?

It’s only reasonable that an executor is compensated for their work. Many estates take months, sometimes years, to settle, and an executor may have to take time away from work or other responsibilities to ensure the estate is administered promptly.

How Are Executor Fees Set In Different Provinces?

The courts in each Canadian province set their own guidelines regarding executor fees, and several factors determine what percentage of an estate’s assets can be claimed by the estate executor, such as:

• the gross value of the estate;
• the time spent;
• the skill and ability demonstrated by the executor;
• the amount of specialized knowledge required;
• the number of delegated tasks;
• the amount and number of necessary disbursements;
• the complexity of the work

And so on.

Rather than listing the executor compensation guidelines for every province, let’s examine three of Canada’s most populous provinces: Ontario, British Columbia, and Alberta.

Executor Fees in Ontario

In Ontario, executors can charge up to 2.5% on both sides of the estate’s assets: amounts received and amounts paid out. For an estate valued at $500,000, the executor’s compensation would be $25,000, generally speaking.

But other factors can result in a higher or lower fee being awarded. For example, if the $500,000 only had one beneficiary, and the entire value was held in a bank savings account, then the estate would be considered straightforward, and a smaller compensation level might be more suitable.

On the other hand, if the $500,000 were wrapped up in multiple real estate properties in Ontario and Arizona, and trusts needed to be established and maintained for the care of minor children, then perhaps a higher compensation would be justified.

Suppose the executor had to manage an estate’s assets for an extended period before settlement. In that case, they might be permitted to charge a management fee of 2/5 of 1% of the average value of the assets managed, in addition to the basic executor fee.

Executor Fees in British Columbia

There are two ways to determine an executor’s compensation in British Columbia.

1. Compensation is outlined in the will;
2. Executor fees are dedicated by s.88(1) of the Trustee Act of British Columbia.

According to the act, the Estate executor cannot charge more than 5% of the estate’s gross aggregate value for remuneration. In addition to the executor’s fee, the executor can apply annually to the Court for a care and management fee for not more than 0.40% of the value of the managed assets. The approval decision lies with the court.

Executor Fees in Alberta

In Alberta, the Executor Fee Guidelines contain four parts. These guidelines do not form the law, but the courts reference them when deciding executor fees.

1. Capital-Based Estate Compensation: The executor fee is a tiered rate based on the total estate value:
   • 3% – 5% of the first $250,000;
   • 2% – 4% of the next $250,000;
   • 3% – 5% of all remaining capital.
2. Revenue-Based Compensation: If the executor is responsible for managing the ongoing revenue of estate assets, they may be entitled to the following compensation:
   • 4% – 6% of the estate’s receipted revenue.
3. Estate Care and Management:
   • 0.6% – 3% of the first $250,000;
   • 0.5% – 2% of the next $250,000;
   • 0.4% – 1% of all remaining capital.

Do All Executors Receive Compensation?

Many executors are close friends or family members of the deceased and don’t request compensation. Perhaps they view their role as a final act of service to their friend or family member.

Are Executor Fees Considered Taxable Income?

Generally, executor fees are considered taxable income because they are considered services rendered. If you are the executor AND beneficiary, you may want to waive your entitlement to executor fees and receive your share of the estate as a beneficiary only. Beneficiaries are not required to report amounts received from an estate as income. If you are faced with this decision, I recommend consulting with an accountant or estate lawyer who knows your situation.

Should I Set Executor Compensation in My Will?

If you are in the process of creating your will, you’ll need to decide whether to address executor compensation in the will or leave it for the courts to decide after you pass away. The correct answer depends on your situation and the complexity of your estate.

By setting an executor fee, you are letting everyone, including your beneficiaries, know your wishes. This can be helpful to your executor, especially if you foresee potential disputes amongst your heirs.

On the flip side, if you set an amount that’s too low and your estate turns out to be highly complex, your executor may not be fairly compensated. By leaving the decision to the courts, they can decide on an appropriate amount after considering all aspects of the estate.

But with so many investment platforms to choose from, how do you know which one is right for you?

This TD Direct Investing review looks closely at one of Canada’s leading self-directed trading platforms. Recognized as a best online broker for Canadian investors, TD Direct Investing stands out for its comprehensive investor resources and user-friendly platform features. We cover the various trading platforms, pricing, and pros and cons, to help you decide if TD Direct Investing is worth considering.

About TD Direct Investing

TD Direct Investing, from TD Wealth, is Canada’s largest online brokerage and a division of the Toronto Dominion Bank. The brokerage originated in 1984 under the name Greenline Investor Services. Eventually, Greenline became TD Waterhouse before it was renamed TD Direct Investing in 2012.

TD Direct Investing is well known for its robust trading platform and is popular with active traders who appreciate its advanced dashboard’s market research tools and powerful trading capabilities.

TD Direct Investing’s fees are considerably higher than many other non-bank Canadian brokerages. However, the services and resources offered can justify these fees for certain investors looking for comprehensive support and a broad range of investment options.

Benefits of TD Direct Investing

Investing with TD Direct Investing empowers you to take charge of your financial future, offering a host of benefits designed to help you achieve your goals. By opening a TD Direct Investing account online, you gain access to a comprehensive suite of investor resources and tools that support more informed investing decisions at every stage of your journey.

You can invest in a wide range of securities, including stocks, mutual funds, and even partial shares, giving you the flexibility to build a diversified portfolio that matches your needs. Whether you’re saving for retirement, planning for your first home with a First Home Savings Account, or simply looking to grow your wealth, TD Direct Investing offers account types and features to help you set and track your progress.

One of the standout advantages of TD Direct Investing is the access to live support and expert guidance. If you have questions or need help navigating the platform, TD’s knowledgeable team is available to provide answers and support, so you can feel confident in your investing decisions. The platform’s robust resources, including market insights and planning tools, make it easier to adapt your strategy and stay on top of your investments.

TD Direct Investing also frequently features limited time offers and alumni exclusive benefits, giving new and existing clients additional value as they start or continue their investing journey. With the ability to open an account online, set personalized goals, and monitor your progress in real time, you have everything you need to invest with confidence.

Choosing TD Direct Investing means partnering with a trusted online broker that combines powerful features, a wide range of account options, and dedicated support—helping you make the most of your money and achieve your financial ambitions.

TD Direct Investing Account Types

TD Direct Investing accounts offer a variety of options to suit different investment needs. You can open the following types of accounts through TD Direct Investing:

• Cash Account (non-registered)
• Margin Accounts
• Tax-Free Savings Account (TFSA)
• Registered Retirement Savings Plan (RRSP)
• Registered Education Savings Plan (RESP)
• Retirement Income Fund (RRIF)
• Locked-In Retirement Account (LIRA)
• Life Income Fund (LIF)
• Registered Disability Savings Plan (RDSP)

Certain conditions and documentation are required to open specific account types, especially for registered accounts such as RSPs.

TD Direct Investing Fees And Pricing

As is the case with all of the big bank brokerages, TD Direct Investing is one of the more expensive self-directed platforms. Here’s a closer look at their various fees:

Standard Trader Fees (On

• Stocks & ETFs: $9.99 per trade
• Options: $9.99 + $1.25 per contract
• Mutual Funds: No commission fees to buy, sell, or switch

Active Trader Fees

• Stocks & ETFs: $7.00 per trade
• Options: $7.00 + $1.25 per contract
• Mutual Funds: No commission fees to buy, sell, or switch

To qualify for Active Trader pricing, you must place more than 150 trades per quarter.

Account Fees

• Maintenance Fees: $25/quarter (waived if household account balances are $15,000 or greater.)
• Transfer Fees: $150
• Registered Account full withdrawal fee: $100.00 (excludes RDSP, RESP, TFSA, and RRIF)
• Partial withdrawal fee: $25.00 (RRSP, Basic RRSP, LIRA, LRSP only)
• Account Statement Fee (Mailed): $2.00
• Electronic Account Statements: Free

Special offers or fee reimbursements may be available for clients transferring accounts such as RRSPs or TFSAs to TD Direct Investing.

For a full list of fees, see the TD Direct Investing Commission Schedule and Statement of Disclosure of Rates and Fees.

Fixed Income Investment Fees

Fixed-income investments such as bonds and GICs can have varying fees depending on the type of security and how it is traded. The fees are generally built into the security price rather than being charged as a separate commission.

TD Direct Investing Platforms And Trading Tools

TD Direct Investing is a leading online broker for investor needs, offering tailored resources, educational content, and investment tools designed to support your financial journey. TD Direct Investing offers a variety of trading platforms to cater to all types of investors, from beginners to advanced traders. With features that allow you to set goals and track your progress, these platforms help you stay on top of your investment strategy. This section will cover the three main platforms: TD WebBroker, Advanced Dashboard, and TD Easy Trade.

TD WebBroker

TD WebBroker is a web-based platform that is user-friendly and suitable for both beginner and experienced investors. You can access WebBroker on a desktop computer or through the TD app. Key features of this platform include:

• A personalized dashboard that allows you to see your account balances, watchlists, and market updates at a glance.
• Advanced order types, including stop, stop limit, trailing stop (by price and %), and trailing stop limit orders, help manage your trades more effectively.
• Multi-leg options strategies (up to 2 legs)
• Charts and research tools to better understand the market and make informed investment decisions.

The WebBroker platform also includes the following market research tools: Daily, weekly, and special reports, Morningstar and TD Economics data, fundamentals, equity and mutual fund screeners, and charting.

Advanced Dashboard

If you are an active trader looking for more powerful and in-depth tools, TD Direct Investing offers the Advanced Dashboard platform. This platform provides:

• Full dashboard customization
• Real-time streaming market data is essential for active traders to react quickly to market changes.
• A range of advanced charting and technical analysis tools, such as moving averages, trendlines, and momentum indicators. Over 100 technical and fundamental indicators and 50+ intelligent drawing tools and technical studies
• Stock screeners, bubble charts, and heat maps
• Access to market news, earnings reports, and analyst research to stay informed about the companies you’re invested in or watching.
• Contingent orders
• Multi-leg option strategies (up to 2 legs)

TD Easy Trade

TD Easy Trade is a separate platform from TD WebBroker and is designed for beginner traders looking for an affordable trading option with the convenience of a mobile app. The standout feature of TD Easy Trade is the 50 commission-free stock trades per year and unlimited commission-free TD ETFs.

There are also no monthly or quarterly account maintenance fees.

TD Easy Trade is clearly meant to be an alternative to Wealthsimple Trade, a highly popular commission-free trading platform from Canada’s largest robo-advisor. TD Easy Trade is available for download on both iOS and Android devices.

With TD Easy Trade, you can open Cash (non-registered), TFSA, and RRSP registered accounts.

TD Direct Investing Pros And Cons

There’s a reason that TD Direct Investing is Canada’s largest online broker. But it’s not for everyone. Here’s my list of TD Direct Investing pros and cons:

Pros:

• Arguably the most powerful stock trading platform in Canada, with the best market research tools
• Benefit from the stability of a trusted financial institution
• No charge for non-registered accounts
• Highly intuitive mobile app
• One-stop shop for existing TD banking customers
• Commission-free mutual fund trades
• Access to many account types, including TFSA, RRSP, Margin, RESP, RRIF, RDSP, LIRA, and LIF
• Set up DRIP reinvestment plans with ease.
• TD Easy Trade is an excellent commission-free alternative to Wealthsimple Trade

Cons:

• Expensive standard trading fees ($9.99 per trade)
• Annoying account maintenance fee of $100/year (without minimum $15,000 balance)

TD Direct Investing Alternatives

If the high trading fees put you off and you want a more robust trading platform than TD Easy Trade offers, you may want to consider the following online brokers instead of TD Direct Investing.

Questrade

Questrade is one of the largest independent online brokers in Canada. By independent, I mean they’re not owned by a big bank. Questrade’s trading platform doesn’t have the same capabilities as TD Direct Investing, but they offer lower trading fees, including commission-free ETF purchases. That’s right, you can purchase thousands of ETFs free of charge through Questrade.

As for stocks, the fees start at only $4.95 per trade. Like TD Direct Investing, Questrade offers a variety of account types to meet your specific needs. Another nice feature of Questrade is their Questwealth Robo-Advisor portfolios. Questwealth robo-advisor portfolios are ideal if you’re looking for a hands-off investing solution.

Click here to get started with Questrade

Wealthsimple Trade

Wealthsimple Trade is a free stock trading platform from Canada’s largest robo-advisor, Wealthsimple. Starting out as a mobile-only trading option, you can now place trades through your desktop as well. While they lack the advanced trading features that TD Direct Investing offers, Wealthsimple offers hundreds of commission-free stocks and ETFs.

Click here to get started with Wealthsimple Trade

The Bottom Line On TD Direct Investing

In terms of capability and features, TD Direct Investing is Canada’s best overall online brokerage. But it’s very expensive, and that’s a consideration you’ll need to make when deciding where to open a self-directed trading account.

If you don’t need to place frequent trades, then the $9.95 trading fee may not turn you off. Active traders will appreciate the advanced dashboard with all of its market research tools and customization.

But if you’re a fee-conscious investor, you will save money with Questrade, especially if you’re an ETF investor. If you want basic stock trading and don’t need all the bells and whistles, look at TD Easy Trade or Wealthsimple Trade.

FAQs

Is BMO InvestorLine or TD Direct Investing better?

It’s important to compare BMO InvestorLine and TD Direct Investing based on your needs and preferences. BMO InvestorLine doesn’t offer the same level of market research data as TD Direct Investing. However, its fees are slightly lower. The standard trading fee is $9.95, but they offer more than 80 commission-free ETFs, and there is no account fee for TFSA accounts. If you’re an existing BMO customer, InvestorLine is probably your best bet. If you bank at TD, then stick with TD Direct Investing.

Is it better to invest with Wealthsimple Trade or TD Direct Investing?

If cost is your primary concern, you’ll save money by investing with Wealthsimple Trade, which allows you to buy and sell hundreds of stocks and ETFs commission-free. However, if you’re an active trader who wants access to a powerful trading platform with the best market research tools, you may prefer dealing with TD Direct Investing. If you qualify for active trader pricing, your fees will be reduced.

How does TD Direct Investing perform for trading stocks?

TD Direct Investing offers a robust platform for trading stocks, with excellent charting and performance tracking tools. When it comes to trading fees, they might be higher compared to other Canadian brokerages, but their platform, market data, and customer support are known to be strong. Your experience with trading stocks on TD Direct Investing may depend on your investing style and preferences. Therefore, it’s essential to weigh the benefits of their platform against the higher fees to determine if it’s the right choice for your stock trading needs.

But which travel credit cards in Canada include airport lounge passes, and which lounge networks are included? In this article, I’ll cover seven of the top airport lounge access credit cards in Canada. I’ll explain how each card works and let you know how many annual passes are included.

The Best Credit Cards for Airport Lounge Access in Canada

With one exception, every card on our list offers at least four complimentary airport lounge passes annually. In fact, one card gives you unlimited airport lounge access on their network. As you review each card, make note of the annual fees, which vary quite a bit, as well as the other rewards and benefits they offer. Don’t base your decision solely on the number of airport lounge passes; some cards present a better overall value than others.

1. Scotiabank Passport Visa Infinite Card

Number of Airport Lounge Passes (Annual): 6

Annual Fee: $150/Year, 1 free supplementary card

Purchase Interest Rate: 20.99%

Welcome Bonus: Earn up to 35,000 Scene+ points. Terms and conditions apply. See Scotiabank’s website for more details.

With the Scotiabank Passport Visa Infinite Card, you receive a complimentary Visa Airport Companion membership and six complimentary lounge visits per year from the enrollment date. Your membership gives you access to over 1200 airport lounges worldwide, including participating Plaza Premium Lounges. Your complimentary lounge passes can be used for you and anyone traveling with you.

If you exceed the six free passes, you can purchase additional visits for $32 USD per person.

In addition to airport lounge access, the Scotiabank Passport Visa Infinite offers a wide range of benefits for cardholders, including the following:

• 8 insurance coverages included
• The ability to earn Scene+ points
• No foreign transaction fees
• Avis car rental discounts
• Visa Infinite Concierge Service
• Visa Infinite Hotel Collection
• Visa Infinite Dining and Wine Country Collection

Rewards Summary:

There are several ways to earn Scene+ points when you spend with your Passport Visa Infinite card.

• 3 Scene+ points per dollar spent at eligible grocery stores (Sobey’s, Safeway, IGA, and more)
• 2 Scene+ points per dollar spent on dining out
• 2 Scene+ points per dollar spent on eligible entertainment purchases (theatres, movies, etc.)
• 2 Scene+ points per dollar spent on eligible transit, rideshare, etc.
• 1 Scene+ point per dollar spent on all other purchases

The minimum income requirement is $60,000 for individuals or $100,000 for households. Considering the value of the airport lounge access, travel rewards, and other benefits the card provides, it can be a worthy investment for frequent travelers and those who prefer a touch of luxury during their airport experience.

2. The Platinum Card® from American Express

Number of Airport Lounge Passes (Annual): Unlimited

Annual Fee: $699 ($175 for each additional Platinum Card)

Purchase Interest Rate: 30% (20.99% for purchases eligible for the Flexible Payment Option)

Welcome Bonus: Up to 80,000 membership rewards points. Terms and conditions apply. See the American Express website for more details.

If you’re looking for a credit card with unlimited lounge access, The Platinum Card® is an excellent choice. With this card, you’ll enjoy many travel benefits, including access to The American Express Global Lounge Collection™️. This prestigious membership grants you access to over 1,300 airport lounges across 140 countries, providing you with a comfortable and relaxing space during your travels.

Participating lounges include Priority Pass, Centurion, Plaza Premium Lounges, Delta Sky Club, Escape Lounges, and more. Note that terms and conditions can vary between different lounges, so it’s a good idea to do your research before travelling.

In addition to unlimited lounge access, The Platinum Card® boasts other travel perks, such as:

• Up to 10 types of insurance coverage
• An annual $200 CAD travel credit
• $100 NEXUS Card Statement Credit
• Hotel Status Benefit
• Fine Hotels & Resorts Benefits
• Comprehensive travel insurance

Rewards Summary:

• 3X points on dining and food delivery purchases in Canada
• 2X points on travel
• 1X point on all other purchases
• 1 additional point per dollar spent on Amex Travel Online (Eligible hotel or car rental bookings)

Keep in mind that this card does have a substantial annual fee of $699. However, the unlimited lounge access, coupled with other premium benefits, can make it a worthwhile investment for frequent travelers.

3. BMO Eclipse Visa Infinite Privilege Card

Number of Airport Lounge Passes (Annual): 6

Annual Fee: $499

Purchase Interest Rate: 20.99%

Welcome Bonus: Up to 90,000 points. Terms and conditions apply. See the BMO website for more details.

As a BMO Eclipse Visa Infinite Privilege Cardholder, you will benefit from a complimentary Visa Airport Companion membership and 6 complimentary airport lounge visits annually (estimated value of over $250). The program is hosted and managed by DragonPass International. To be eligible, both the primary and secondary cardholder (if applicable) must enroll separately through the Visa Airport Companion app or website.

In addition to airport lounge access, you’ll receive the following card benefits:

• 8 different types of insurance coverage
• $200 annual lifestyle credit
• Priority Security Lane, airport parking, and valet service discounts at select Canadian airports
• Visa Infinite Luxury Hotel Collection
• Visa Infinite Privilege Concierge
• Visa Infinite Dining Series
• Visa Infinite Wine Country
• Access Troon Rewards Golf benefits

Rewards Summary:

• 5X points per dollar spent on groceries, dining in and out, drugstore purchases, gas, and travel
• 1 point per dollar spent on everything else
• 25% more points on all purchases when you add an authorized user to your account

The airport lounge benefits from the BMO Eclipse Visa Infinite Privilege card are similar to what’s offered by the Scotiabank Passport Visa Infinite Card we covered above. However, the annual fee is much higher, at $499 per year. You are getting more rewards earning power with the BMO card, which is probably the main reason for the much higher fee.

Of note, you do require a high annual income to qualify for this card: $150,000 for individuals or $200,000 for households.

4. TD Aeroplan Visa Infinite Privilege

Number of Airport Lounge Passes (Annual): 6

Annual Fee: $599; $199 for each additional cardholder

Purchase Interest Rate: 20.99%

Welcome Bonus: Up to 115,000 Aeroplan points (up to $3,100 value). Terms and conditions apply. See TDs website for more details.

The TD Aeroplan Visa Infinite Privilege card offers nearly identical airport lounge benefits to the aforementioned BMO Eclipse card, which is unsurprising given that they are both part of the Visa Infinite Privilege program. This is TD Bank’s most prestigious credit card and should be high on your radar if you’re a loyal Air Canada customer.

Regarding airport lounge access, the card includes a complimentary membership in the Visa Airport Companion Program hosted by, you guessed it, DragonPass International Ltd. Each cardholder receives six lounge visits per year at over 1,200 airport lounges globally.

Here is a list of other card benefits:

• Up to 9 different types of insurance coverage
• Annual round-trip companion pass from $99
• Nexus application fee rebate
• Complimentary Visa Infinite Concierge service
• Visa Infinite Privilege Airport Benefits
• Complimentary upgrade to Avis’ President’s Club
• Air Canada travel benefits, which include Priority check-in, boarding, baggage handling, airport standby, airport upgrades, and more.

The card’s affiliation with Air Canada also provides additional travel perks for an all-around luxurious travel experience. Here’s a closer look at how the Aeroplan rewards program works with this card.

Rewards Summary:

• Earn 2 Aeroplan points on eligible Air Canada purchases (including Air Canada vacations)
• Earn 1.5 Aeroplan points per dollar spent on eligible gas, groceries, dining, and travel purchases.
• Earn 1.25 points per dollar spent on all other purchases

As with the BMO Eclipse card, the TD Aeroplan Visa Infinite Privilege card has a high annual income threshold to qualify. Individuals must have an annual income of $150,000, or $200,000 for households.

5. Scotiabank Gold American Express® Card

Number of Airport Lounge Passes (Annual): None; discount on annual Priority Pass membership

Annual Fee: $120; $29 for each supplementary card

Purchase Interest Rate: 20.99%

Welcome Bonus: Up to 40,000 Bonus Scene+ points. Terms and conditions apply. See Scotiabank’s website for full details.

The Scotiabank Gold American Express® Card offers a preferred discount on a Priority Pass airport lounge membership. While the card doesn’t provide any complimentary lounge passes, you will have the ability to access over 1200 VIP lounges worldwide. I wouldn’t recommend this card to someone who plans to visit an airport lounge whenever they travel. It’s more suitable for cardholders who are interested in the other card benefits, i.e., earning Scene+ rewards, but like having the option to use an airport lounge for a reasonable cost.

Here’s a summary of the card’s many benefits:

• Up to 9 different types of insurance coverage
• No foreign transaction fees
• Amex Offers (Register your card for shopping, dining, and travel offers)
• Amex Front Of The Line (Purchase presale tickets to in-demand concerts, special events, etc.
• American Express Invites
• Complimentary concierge services

Rewards Summary:

• 6 Scene+ points per dollar spent at eligible grocery stores (Sobey’s, Safeway, IGA, and more)
• 5 Scene+ points per dollar spent on dining out
• 5 Scene+ points per dollar spent on eligible entertainment purchases (theatres, movies, etc.)
• 3 Scene+ points per dollar spent on eligible transit, rideshare, etc.
• 3 Scene+ points per dollar spent on eligible digital streaming purchases
• 1 Scene+ point per dollar spent on all other purchases

The Scotiabank Gold American Express® Card is a solid choice for travellers who want discounted lounge access and the opportunity to collect generous rewards at a low annual fee. Compared to the Visa Infinite Privilege cards, the card benefits may seem mediocre, but you’re saving hundreds of dollars on the annual fee.

6. CIBC Aventura Visa Infinite Card

Number of Airport Lounge Passes (Annual): 4

Annual Fee: $139; $50 for each additional card

Purchase Interest Rate: 20.99%

Welcome Bonus: Up to 35,000 Aventura points, one-time annual fee rebate ($139 value). Terms and conditions apply. Visit the CIBCs website for more details.

The CIBC Aventura Visa Infinite offers a solid mix of travel rewards and lounge access benefits that can make your trips more enjoyable. Cardholders receive 4 complimentary airport lounge passes annually through the Visa Airport Companion Program, which includes over 1,300 lounges. You also get an application fee rebate on your Nexus membership every four years, making the card ideal for frequent travelers to the US.

Here are some of the other benefits you can expect to receive:

• Up to 8 different types of complimentary insurance coverage
• CIBC Pace It installment financing
• Visa Infinite Luxury Hotel Collection
• Visa Infinite Dining & Wine Country
• Complimentary Concierge
• Up to 10 cents off per litre at participating gas stations

Rewards Summary:

• Earn 2 Aventura travel points per dollar when you book travel through the CIBC rewards centre
• Earn 1.5 points per dollar spent at eligible gas and electric charging stations and grocery and drug stores.
• Earn 1 point per dollar spent on all other purchases.

If airport lounge access is a priority, other cards offer more passes at a similar annual fee. For example, the Scotiabank Passport Visa Infinite offers 6 lounge passes. The annual fee is slightly higher, at $150, but you get a free supplementary card, which more than cancels out the additional cost.

However, if you’re an existing CIBC customer, you may not see the value of jumping to a competitor card on a separate rewards program, for a couple of additional lounge passes.

7. BMO Ascend World Elite Mastercard

Number of Airport Lounge Passes (Annual): 4

Annual Fee: $150/Year, 1 free supplementary card

Purchase Interest Rate: 20.99%

Welcome Bonus: Up to 60,000 points and the annual fee waived for the first year for all cardholders. Terms and conditions apply. See the BMO website for full details.

The only Mastercard on our list includes a free membership in Mastercard Travel Pass provided by DragonPass, plus 4 free complimentary lounge passes a year. In addition to lounge access, the BMO Ascend World Elite Mastercard also comes with several travel benefits and rewards.

• Up to 6 different types of insurance coverage
• Complimentary concierge service
• Car rental discounts (participating National and Alamo car rental locations)
• Discounts to Cirque du Soleil shows.
• Free access to more than 1 million Boingo Wi-Fi hotspots worldwide
• Access to Mastercard Travel Rewards benefits

Rewards Summary:

• 5X the points for every dollar spent on eligible travel purchases
• 3X the points for every dollar spent on eligible dining purchases
• 3X the points for every dollar spent on eligible entertainment purchases
• 3X the points for every dollar spent on recurring bill payments
• 1 point per dollar spent on all other purchases

The BMO Ascend World Elite Mastercard is worth considering for occasional travelers. For a reasonable annual fee, which is waived during the first year, you get 4 complimentary airport lounge passes, a generous travel rewards program, and up to 6 different types of travel-related insurance coverage.

Popular Airport Lounge Programs in Canada

Credit card companies partner with several different airport lounge programs. Some airport lounges have more amenities than others, and experienced travelers will likely have lounges that they prefer, but all told, they offer a similar experience. To help you sort out the different airport lounge programs, let’s take a closer look at some of the most well-known lounge networks.

Priority Pass

With more than 1,400 lounges in its global network, Priority Pass is the world’s largest independent airport lounge program (it’s not affiliated with one specific airline or credit card). Priority Pass is present in seven Canadian airports: Toronto, Montreal, Vancouver, Calgary, Ottawa, and Quebec City.

Annual memberships range from $99 to $469 US, but some Canadian credit cards let you enjoy complimentary Priority Pass memberships and free lounge visits each year, so keep an eye out for those perks.

Mastercard Airport Experiences by LoungeKey

Mastercard Airport Experiences, provided by LoungeKey, grants you access to over 1,400 lounges worldwide. When using an eligible Canadian Mastercard, you typically get a certain number of free annual visits and discounted entry fees for additional visits. This program also offers exclusive deals on dining, shopping, and spa services at select airports.

Plaza Premium Lounges

Plaza Premium is an independent lounge network with locations around the world, including key airports in Canada. You can access these lounges by purchasing a one-time pass, through a membership plan, or with certain Canadian credit cards offering complimentary access and guest entry discounts.

Air Canada’s Maple Leaf Lounges

Air Canada’s Maple Leaf Lounges provide a comfortable space to relax before your flight. Access is available to eligible Air Canada passengers, Star Alliance Gold members, and holders of specific credit cards that offer Maple Leaf Lounge passes. These lounges provide complimentary refreshments, Wi-Fi, and comfortable seating in select Canadian airports and international locations.

American Express Global Lounge Collection®

The American Express Global Lounge Collection® consists of various lounge programs, including Priority Pass, Centurion Lounges, and partner lounges. Cardholders of specific American Express credit cards may receive complimentary access to these lounges, along with benefits like guest passes or discounted entry rates.

Visa Airport Companion Program by DragonPass

The Visa Airport Companion Program by DragonPass offers access to over 1,200 lounges globally. Cardholders of eligible Visa credit cards can enjoy complimentary or discounted lounge access. This program also features exclusive offers on airport dining, retail, and spa services.

Mastercard Travel Pass by DragonPass

Mastercard Travel Pass, powered by DragonPass, provides access to over 1,200 airport lounges worldwide, as well as discounts on dining and other airport services. Some Canadian Mastercard holders, including BMO Ascend World Elite cardholders, can benefit from this program’s perks, such as a certain number of free lounge visits and discounted entry fees for additional visits.

The Bottom Line on Airport Lounge Access Credit Cards

With so many credit cards offering airport lounge access across Canada, you should be able to find one that suits your needs and preferences.

If unlimited lounge access is your priority, The Platinum Card® is the top choice. But it has a high annual fee and annual income threshold. If you’re looking for the best airport lounge value, the Scotiabank Passport Visa Infinite Card is your best bet.

Remember, each card comes with its own set of perks and benefits, so take time to research and weigh your options before making a decision. Finding a credit card that matches your lifestyle and travel habits while providing airport lounge access can add greatly to your overall travel experience.

FAQs

How can I check if my credit card includes airport lounge access?

You can find out if your credit card benefits include airport lounge access by checking your card’s benefits guide or visiting the card issuer’s website. You can also call the customer service number on the back of your card to inquire about lounge access benefits.

Which credit cards offer lounge access with no annual fee?

The short answer is there aren’t any. Most cards that offer airport lounge access are premium rewards cards that charge an annual fee in exchange for providing premium benefits. That said, some cards may waive the annual fee in the first year as part of a welcome bonus.

What banks provide credit cards with airport lounge access?

Several banks in Canada provide credit cards with airport lounge access, including big banks like RBC, Scotiabank, TD Bank, and CIBC. Before signing up, research and compare the various bank credit cards to find the one that best suits your needs.

How many times can I visit airport lounges with my credit card?

The number of complimentary airport lounge visits will vary depending on the credit card. Some cards offer unlimited lounge visits, while others provide a limited number of complimentary visits per year or charge a reduced fee for each visit beyond what’s included. Check your card’s terms and conditions or contact the issuer’s customer service for more information on lounge visit limits.

However, as you near retirement, knowing when and how to convert your RRSP into income using a Registered Retirement Income Fund (RRIF) can ensure a steady income stream throughout your golden years. We’ll cover those details in this article, but first, here’s a closer look at the differences between RRSPs and RRIFs.

RRSP Vs. RRIF: What’s the Difference?

RRSPs and RRIFs have some similarities. Both are tax-deferred retirement accounts and allow you to assign beneficiaries, you must pay withholding tax on withdrawals, and you can invest your money in a number of ways.

But RRSPs and RRIFs are not the same thing, which is why it’s important to understand the differences.

An RRSP is a savings plan designed to help you save money for retirement. You contribute to the plan during your working years, and your investments grow tax-deferred. This means you don’t pay taxes on the growth within the plan while the funds remain in the RRSP. You can choose from various investment options, such as GICs, mutual funds, ETFs, stocks, and bonds.

On the other hand, a RRIF is meant to provide income during retirement. You must convert your RRSP into an RRIF by the end of the calendar year in which you turn 71. While the types of investments held within an RRSP and an RRIF can be the same, there are some key differences.

1. Withdrawal Rules

You are not required to withdraw from an RRSP, but with a RRIF, you must take minimum withdrawals each year. The annual minimum withdrawal is based on your age and the balance in your RRIF account. If you are married and your spouse is younger than you, you may be able to use your spouse’s age to determine your minimum withdrawal amount. This can reduce the required amount and help you defer taxes longer.

2. Flexibility of Withdrawals

Both types of accounts allow you to withdraw, but RRIFs offer more convenient withdrawal options. Most RRIF accounts allow you to set up automatic monthly, quarterly, or annual payments. RRSP plans don’t offer this flexibility and only allow you to make manual, lump-sum withdrawals.

3. Tax Treatment

Both RRSPs and RRIFs are tax-sheltered, but with an RRSP, your contributions are also tax-deductible. You cannot contribute to a RRIF, so there is no tax deductibility.

When Do I Need to Do a RRSP to RRIF Conversion?

You must convert your RRSP to a RRIF by December 31st of the year in which you turn 71. For example, if you turn 71 in July of 2024, you must convert by December 31, 2024.

Penalty for Not Converting RRSP to RRIF

If you don’t by the deadline, the CRA will treat your entire RRSP savings balance as taxable income that year. Depending on your overall income and the balance in your RRSP, it could result in a substantial tax penalty.

Can I Convert My RRSP to RRIF Early?

You can switch your Registered Retirement Savings Plan (RRSP) to a Registered Retirement Income Fund (RRIF) as early as age 55. Doing so may be beneficial if you’re nearing retirement and require a periodic income stream.

If not, it’s generally better to leave your money in the RRSP and occasionally withdraw if you don’t need the regular income yet. Keep in mind that there are other scenarios where converting to a RRIF earlier than 71 might make sense. Everyone’s situation is different, so it’s best to consult a financial planner who can help you make the right decision.

Can I Make a Partial Conversion of RRSP to RRIF?

Yes, you can partially convert your RRSP to a RRIF, as long as it’s before the age 71 deadline. Instead of collapsing the entire RRSP, you would transfer a specific portion to a RRIF while keeping the remaining balance in your RRSP.

How Do I Convert My RRSP to a RRIF?

The process of transferring an RRSP into a RRIF is a straightforward procedure that your financial institution can assist you with. In fact, if you haven’t taken any action leading up to the age 71 deadline, your RRSP issuer will likely reach out to you to remind you to make the conversion.

When converting your account to a RRIF, you’ll be asked to choose a payment schedule. You can opt only to receive the minimum annual payment, or you can take a larger amount on a regular basis, such as monthly or quarterly.

If you’ve decided to open your RRIF at a different bank or credit union than where you have your RRSP, remember that you’ll need to make the RRSP to RRIF conversion before or after transferring between institutions.

RSP to RRIF Conversion Tips

Here are some tips to help you navigate the RRIF conversion process:

• Ensure that you convert your RRSP to a RRIF by December 31st of the year you turn 71
• Consider using the younger spouse’s age for the minimum RRIF withdrawal calculation
• Beware of the tax implications of RRIF withdrawals
• If you can, claim the pension income amount to reduce taxes
• Transfer RRSP funds directly to your RRIF account (financial institutions help with this)

Final Thoughts on Converting Your RRSP to RRIF

Converting your RRSP to a RRIF will make it easier to manage your retirement finances, minimize taxes, and continue to generate growth from your investments. The biggest thing to remember is that you must make the conversion by December 31st of the year you turn 71, or you could be subject to significant tax penalties. Also, remember that each person’s financial situation is unique, so always obtain professional advice about when you should make the switch from RRSP to RRIF.

FAQs

What is the minimum age to convert an RRSP to a RRIF?

You can convert your Registered Retirement Savings Plan (RRSP) to a Registered Retirement Income Fund (RRIF) and begin withdrawing money as early as age 55, but you must convert no later than December 31 of the year you turn 71. After conversion, you must withdraw a minimum amount from your RRIF in the following calendar year, and you will pay tax on the money you withdraw.

Do taxes apply when converting an RRSP to a RRIF?

Converting your RRSP to a RRIF is not a taxable event. It simply involves transferring your existing investments from one account type to another. However, withdrawals from your RRIF will be subject to withholding tax, and you’ll have to report the withdrawal amount as income on your tax return the following year. Remember that when you withdraw, it is considered income, so any amount you take out may affect your tax bracket and any government benefits you receive.

Is there a benefit to converting an RRSP to a RRIF early?

If you need to draw income from your investments before you turn 71, converting your RRSP to a RRIF early can be a good option. RRIFs make it easier for you to control the timing and amount of your withdrawals, which can be helpful for managing taxes and other financial considerations.

In this CIBC Investor’s Edge review, we’ll cover the key features, pricing, and pros and cons. We’ll also share some alternatives.

What Is CIBC Investor’s Edge?

CIBC Investor’s Edge is the online brokerage division of CIBC, one of Canada’s largest banks. With an Investor’s Edge account, you can buy and sell stocks, bonds, ETFs, mutual funds, options, and other financial instruments from your desktop computer or mobile app.

Investor’s Edge also offers several account types, including registered and non-registered accounts. Its pricing sets the platform apart from the other big bank brokerages, which are generally considered Canada’s most expensive online brokerages.

Investor’s Edge Accounts Types

You can open the following accounts with CIBC Investor’s Edge:

Non-Registered:

• Cash account
• Margin account

Registered:

• Tax-Free Savings Account (TFSA)
• Registered Retirement Savings Plan (RRSP)
• Locked-In RSP (LRSP)
• Registered Education Savings Plan (RESP)
• Registered Retirement Income Fund (RRIF)
• Prescribed Retirement Income Fund (PRIF)
• Locked-In Retirement Account (LIRA)
• Locked-In Retirement Income Fund (LRIF)
• First Home Savings Account (FHSA)

Non-Personal Accounts:

• Corporate or Partnership
• Investment Club
• Formal Trust
• Estate

Investor’s Edge added a First Home Savings Account (FHSA) option to the lineup. The account, which the Canadian government launched in 2023, helps eligible Canadians save money to purchase their first home. Like an RRSP, contributions to an FHSA account are tax deductible. For more information, check out this First Home Savings Account guide.

CIBC Investor’s Edge Trading Platforms

The Investor’s Edge trading platform has enough functionality to satisfy most investors. While its website doesn’t provide a lot of detail on what’s available to investors, you can expect the following features:

• Access market news
• Read analyst reports to help you make investment decisions
• Stock screening tools allow you to filter investment options based on sector, market capitalization, dividend yield, etc.
• Create watchlists to keep track of your favourite stocks and ETFs
• Technical analysis capability
• Sign up for newsletters to receive market overviews

CIBC Investor’s Edge has updated the user interface for both their desktop and mobile trading apps, and both are definitely cleaner and more user-friendly than earlier versions, making it easier than ever to navigate your investment portfolio.

CIBC Investor’s Edge Pricing and Fees

Investor’s Edge offers competitive trading fees on stocks and ETFs. Here’s a closer look at what you can expect to pay after opening an account.

Trading Fees

• Canadian and U.S. stocks and ETFs: $6.95/trade
• Options: $6.95 + $1.25 per contract
• Money market mutual funds: $0
• All other mutual funds: $6.95

Annual Account Fees

• TFSA, RESP, FHSA: $0
• RRSP, RRIF, LIRA, LIF: $100 (waived with a minimum balance of $25,000 or more)
• Non-Registered Accounts: $100 (waived with a minimum balance of $10,000 or more)

For a full list of fees, refer to the Investor’s Edge Commission and Fees Schedule.

CIBC Investor’s Edge Pros and Cons

The $6.95 trading fee CIBC Investor’s Edge charges might catch your attention as you shop for an online brokerage account. But is it right for you? Here are some pros and cons to help you make an informed decision.

Pros:

• Competitive trading fees for a bank brokerage
• Open any type of account, including non-personal accounts
• Recently refreshed desktop and mobile trading platforms provide a better trading experience
• CIBC Investor’s Edge offers helpful educational resources, tutorials, and tools to help you understand the basics of investing and build your financial knowledge.

Cons:

• Lacks the advanced trading features and market research tools of the top platforms
• Charges $6.95 for mutual fund trades (except for money market)
• Annoying $100 annual account fee for registered accounts (must have over $25,000 to waive)

CIBC Investor’s Edge Alternatives

CIBC Investor’s Edge has a lot to offer investors. But it doesn’t have the lowest fees in the industry or the best trading platform. Before you sign up with CIBC Investor’s Edge, you may want to check out the following alternatives:

Questrade

Questrade is Canada’s largest independent online brokerage. In other words, it’s not owned by any big banks or credit unions. If you are an ETF investor, Questrade might be your best fit. Questrade offers no-commission ETF purchases on thousands of funds. In addition, stock trades start at $4.95, which is lower than the standard trading fee at Investor’s Edge.

Click here to open a Questrade account

Wealthsimple Trade

Wealthsimple Trade is a free stock trading app from Canada’s largest robo-advisor. Wealthsimple Trade offers free stock and ETF trades, and there are no account minimums or fees. Despite its low cost, Wealthsimple Trade may not be suitable for active traders who are looking for more advanced market research capabilities and complex trading options. Still, if you’re a beginner investor and wish to avoid the high fees charged by CIBC Investor’s Edge, consider Wealthsimple Trade.

Click here to get started with Wealthsimple Trade

TD Direct Investing

TD Direct Investing is Canada’s largest online broker, boasting the most powerful trading platform of any big bank brokerage. But you pay a price for the premium experience, as TD is one of the most expensive stock trading apps, pricier than CIBC Investor’s Edge. TD charges a $9.95 standard fee for stock and ETF trades. While the price drops to $7 per trade for active traders, it’s still higher than the standard $6.95 fee charged by Investor’s Edge.

TD does have a more robust trading platform, including an advanced dashboard with excellent functionality and market research tools. Note that TD doesn’t charge for mutual fund trades, whereas Investor’s Edge charges $6.95 (except for Money Market).

Is CIBC Investor’s Edge Safe?

CIBC Investor’s Edge is a safe platform to use. Like any online banking platform, they employ the highest levels of encryption to protect users’ personal and financial information. There are automatic time-outs after periods of inactivity, security questions, and 2-step verification.

As an Investor’s Edge client, your accounts are covered by the Canadian Investment Protection Fund (CIPF) for up to $1 million for certain account types. Remember that the CIPF doesn’t protect you from losses on your investments. Rather, it offers protection in case your investment brokerage becomes insolvent.

The Bottom Line on CIBC Investor’s Edge

Investor Edge’s top feature is it’s $6.95 stock and ETF trading fee, full stop. This makes it a solid choice for existing CIBC clients who want to keep all of their banking and self-directed investments under one roof. Also, if you’re fee-conscious but feel more comfortable dealing with a big bank, then Investor’s Edge is worth considering. Otherwise, Questrade or Wealthsimple Trade (for beginners) are lower-priced options.

Click here to get started with CIBC Investor’s Edge

FAQs

What is the process of opening a CIBC Investor’s Edge account online?

To open a CIBC Investor’s Edge account, visit the company website and click on “Open an Account.” From there, follow the step-by-step instructions to complete the application process. You will need to provide personal information, such as your name, address, and Social Insurance Number. Additionally, you will be asked about your investment experience and goals. Once your application is submitted and approved, you can fund your account and start trading.

How do CIBC Investor’s Edge fees compare to competitors?

CIBC Investor’s Edge offers a competitive fee structure with a low, flat commission of $6.95 per online trade for stocks and ETFs. This commission rate is favourable when compared to other big bank brokers but lags behind Questrade and Wealthsimple Trade.

Is there a mobile app for CIBC Investor’s Edge?

CIBC Investor’s Edge has a mobile app available for iOS and Android devices. You can download the app from the Apple App Store or Google Play Store.

How long does a transfer take between CIBC and Investor’s Edge?

The transfer time from your linked Simplii Financial or CIBC bank account to your Investor’s Edge account should be immediate. Transfers from a bank account at a different financial institution can take up to 5 days before you can place a trade, and up to 10 days to transfer the funds elsewhere.

That’s where a Certified Financial Planner (CFP) comes in. In this article, I’ll explain how the CFP role works and why you may want to consider the services of a financial planner who has received the CFP accreditation.

What Is a Certified Financial Planner?

A Certified Financial Planner (CFP) is a professional who has been certified in various areas of personal finance. Some of the primary areas CFPs deal with include investment management, retirement planning, taxes, insurance, and estate planning.

To receive a CFP certification, you must meet certain requirements, such as completing a specific set of coursework, successfully passing the CFP exam, gaining relevant work experience, and adhering to the code of ethics.

How Can a Certified Financial Planner Help?

Certified Financial Planners assist clients in accumulating, preserving, and distributing wealth during their lifetime. Here are five financial planning categories that a CFP addresses with their clients.

Investment Planning

A major part of a Certified Financial Planner’s role is to guide clients in constructing well-diversified investment portfolios tailored to their unique financial objectives and risk profiles.

Tax Planning

CFPs offer valuable insights on effective tax strategies. This helps their clients minimize their tax liabilities and maximize their after-tax wealth.

Insurance Planning

A CFP should ensure their clients’ have sufficient insurance coverage, including life, disability, and critical illness insurance. Many CFPs are equipped to assess clients’ insurance needs and recommend suitable products to protect them from potential financial losses.

Estate Planning

Certified Financial Planners are trained to deal with the financial aspects of all stages of their clients’ lives, including estate planning. A CFP can work to ensure the smooth transfer of clients’ assets to beneficiaries while minimizing taxes and avoiding legal complications.

Retirement Planning

Last but not least, CFPs play a critical role in helping their clients build a financially secure retirement. They do this by assisting them to craft strategies to accumulate and preserve their wealth.

You’ll play a vital role in helping clients build a financially secure retirement by carefully crafting strategies to accumulate and preserve wealth. This includes maximizing government benefits such as the Canada Pension Plan (CPP) and Old Age Security (OAS).

How Much Do CFPs Charge in Canada?

Certified Financial Planners may be compensated in different ways, so it’s important to understand the various fee structures that may be used.

Percentage of Assets Under Management (AUM)

Many Certified Financial Planners charge a percentage of your assets under management. This fee structure incentivizes your CFP to help grow your investments since they’ll be paid more as your portfolio grows. AUM fees usually range from 0.5% to 2% of your assets. For example, if the value of your investment portfolio managed by your CFP is $200,000 and they charge a 1% AUM fee, you will pay $2000 annually.

Flat Fee per Financial Plan

Fee-only financial planners may charge a flat fee for creating a comprehensive financial plan tailored to your specific situation. This fee structure offers transparency and can range from $1,000 to $5,000 or more, depending on the complexity of your financial needs.

Hourly Fees

Some CFPs charge an hourly fee for their services. This means you’ll pay for their time working on your financial plan. Hourly rates can range from $100 to $350, depending on the experience and location of the professional.

While considering CFP fees, it’s important to weigh the costs and benefits of each fee structure to determine which one best suits your needs.

Commissions

A fee-based financial planner may earn income from commissions on selling financial products and services to their clients. This could result in a potential conflict of interest because the advisor may be incentivized to recommend financial products that aren’t in your best interests. That said, fiduciary standards bind many fee-based financial planners.

Who Should Use a Certified Financial Planner?

You can benefit from working with a CFP if you need help with:

• Setting and prioritizing financial goals
• Budgeting and cash flow management
• Investment planning and portfolio management
• Retirement planning
• Insurance and risk management
• Estate planning

If you have a small portfolio, it may not make sense to hire a CFP, as the fees may be too high. For example, if a CFP charges $2500 for a financial plan, but your portfolio is only $10,000, you won’t get enough value from their service. This is one of the reasons that many CFPs have a minimum portfolio size that clients must meet in order to deal with them.

CFP vs. Financial Advisor

When it comes to managing your finances and planning for the future, you might wonder if you need a CFP or a financial advisor. Both professionals can help you achieve your financial goals, but there are some key differences between the two.

A CFP is a highly trained financial professional who has earned the CFP designation through a rigorous certification process. They specialize in creating comprehensive financial plans tailored to your specific needs and objectives, including retirement planning, investment management, tax strategies, estate planning, etc.

CFPs are also bound by a fiduciary standard, meaning they must put your best interests first when providing advice and recommendations. This means they must be impartial and transparent about fees and potential conflicts of interest.

A financial advisor is a broader term that can refer to professionals with various levels of expertise and credentials. While some financial advisors may hold designations like the CFP, others may have no specific certifications.

While not all financial advisors are required to follow the fiduciary standard, some may choose to adhere to these principles or be held to a suitability standard, which requires them to recommend products that are suitable for your needs and objectives.

CFP vs. CFA

In your search for a CFP, you may have encountered another designation: the Chartered Financial Analyst (CFA). While both the CFP and CFA titles are well respected, they cater to different areas within the world of finance. Let’s take a closer look at the key differences between the two to help you understand which might suit your needs better.

A CFP primarily deals with your overall financial planning and its various components. They take a holistic approach by looking into your financial goals, risk tolerance, life stage, and more, helping you devise a comprehensive plan to achieve your objectives.

On the other hand, a CFA focuses mainly on investment management and the analytical aspects of finance, making them more suitable for large corporations and institutional investors. Some CFPs are also CFAs, but many CFAs do not engage in financial planning.

Where Can I Find a CFP?

Many well-known Canadian financial institutions, such as banks and credit unions, have CFPs on their staff. Browse their websites or contact customer service and inquire about the qualifications for dealing with a CFP.

You can also ask your friends, family, or colleagues who have previously worked with a CFP. Referrals can be a great way to meet reliable professionals with a proven track record of helping others achieve their financial goals.

Also, online reviews and forums can provide you with insights from people who have utilized the services of a CFP. I don’t recommend relying solely on online reviews from strangers, but it may be a good starting point.

Final Thoughts on The CFP Role

If you have a sizable investment portfolio, you may want to consider dealing with a Certified Financial Planner. As mentioned, in addition to helping you manage your investments, they can advise on several important matters, including retirement, tax, and estate planning. While costs are involved, a good CFP can make it a worthwhile investment over the long term.

FAQs

What is the cost of obtaining a CFP designation?

According to FP Canada, the CFP Exam fee is $950. However, on your journey to becoming a CFP, there will be additional courses and related fees that you will be required to pay. The total cost may be a few thousand dollars or more depending on your educational path.

If you are employed in the financial services industry, your employer may pay for some or all of the costs if they support your goal to become a CFP.

Are there online courses available for aspiring CFPs?

Many educational institutions and professional organizations offer online programs that are tailored specifically for aspiring CFPs. These programs can provide flexibility in terms of scheduling and location, allowing you to balance your current commitments with your career aspirations.

Do CFP professionals earn significantly higher salaries in Canada?

CFP professionals in Canada are often compensated well for their expertise and skills in financial planning. While their income can vary depending on location, experience, and compensation models, CFP professionals generally earn higher incomes than those without the designation.

You can choose to buy life insurance that is tied to your mortgage. This is known as mortgage life insurance. Or, you can purchase a separate term life insurance policy to pay off your mortgage if you pass away.

But which is the better option of the two? Should you buy the mortgage lender’s life insurance or buy term insurance separately? It’s an oft-debated topic which we’ll explore in detail in this article.

What Is Mortgage Life Insurance?

Mortgage insurance is specifically designed to protect your mortgage investment, whereas term life insurance offers broader financial protection for your loved ones.

Mortgage insurance provides coverage to pay off the outstanding mortgage balance upon the policyholder’s death, ensuring that your family can continue living in the property without incurring financial strain from any loss of income that may occur.

What Is Term Life Insurance?

On the other hand, term life insurance offers your beneficiaries a tax-free lump sum payout, which they can use to cover mortgage payments, debts, or other expenses as they see fit. Term life insurance is not tied directly to your mortgage.

Both types of insurance can be valuable in providing financial security for your family and home, but it’s essential to choose the coverage that will best suit your specific needs and circumstances.

Pros and Cons of Mortgage Life Insurance

Here’s a look at some pros and cons of purchasing mortgage life insurance.

Pros:

• Simplicity and convenience: Mortgage life insurance is often offered by your mortgage provider when you apply for your mortgage. It’s easy to apply for, and the premiums are typically added to your mortgage payment.
• No medical tests: Unlike term life insurance, you typically don’t need a medical exam to qualify for mortgage life insurance. You will have to answer a health questionnaire, and coverage may be limited or declined for certain health issues, but you won’t have to get a medical exam.
• Your premiums won’t increase: There is a caveat to this. With most mortgage life insurance policies, your premiums won’t increase for the life of that mortgage. Because the premiums are lower when you are young, you could theoretically have a very affordable insurance premium for up to 25 years. The caveat is that if you ever make a change to the mortgage – you refinance it, transfer it to another bank, or sell your house and have to make changes to your mortgage – then it may trigger a new mortgage life insurance application at a higher premium (because you’re now older.) Many people make one or more of these changes to their mortgage over a 25-year period.

Cons:

• Cost: Generally, mortgage life insurance is more expensive than a term life policy of the same coverage amount. It’s even more expensive when you consider that your coverage amount gets smaller and smaller as you pay off your mortgage balance. Your term life insurance coverage amount does not change.
• Limited beneficiary options: With mortgage life insurance, the sole beneficiary is your mortgage lender, meaning they receive the payout when you pass away. Your loved ones benefit because the mortgage balance is paid off, but they cannot use the payout to cover other financial needs.
• Decreasing coverage: While decreasing coverage might seem efficient because it aligns with your mortgage balance, it can also be a con because your premiums remain the same even as your coverage amount reduces over time.
• Lack of portability: Mortgage life insurance is usually tied to your mortgage provider. If you decide to change mortgage providers or refinance, you may lose your coverage and have to reapply for a new policy.

Pros and Cons of Term Life Insurance

Let’s now take a look at the pros and cons of protecting your mortgage balance with a term life insurance policy.

Pros:

• Affordability: Term life insurance plans typically come with lower premiums than permanent life insurance policies, enabling you to save money over the long run. This makes it a cost-effective choice, especially if you are young and healthy.
• Flexibility: Term life policies offer various lengths or “terms,” usually ranging from 10 to 30 years. This flexibility allows you to tailor your coverage to match specific needs or financial goals, such as paying off your mortgage or providing for your children’s education.
• Straightforward: Term life insurance is easy to understand, offering a straightforward death benefit without adding cash values or investment components. Your beneficiaries receive a tax-free payout if you pass away during the term of the policy. It’s that simple.
• Renewable and convertible: Many term life insurance policies can be renewed or converted to a permanent life insurance policy without undergoing another medical exam. This allows you to maintain or adjust your coverage as your needs change over time.

Cons:

• Limited coverage: Term life insurance only covers you for the specified term, i.e., 10, 20, or 25 years. Once the term ends, your policy expires, and you must purchase new coverage if desired. This can be a disadvantage if you develop health issues over time, making future premiums more expensive.
• Less convenient: It’s perhaps less convenient to purchase a separate term life insurance policy when setting up your new mortgage. It’s completely separate from your mortgage, so you must arrange to apply with a separate life insurance company and, ideally, have it set up before your mortgage is funded. If there’s a concern regarding timing, you can always apply for the mortgage life insurance and cancel it as soon as your term policy is in effect. This would ensure that there are no gaps in coverage.
• You may require a medical exam: One of the reasons that term life policies are so affordable is that the insurer does a more thorough screening of applicants, including requiring medical exams. While a medical exam isn’t bad, you may view it as an inconvenient annoyance or be stressed about the idea of having to go through the process.

Mortgage or Term Life Insurance: Which Should I Choose?

For most Canadians, a term life insurance policy is the best choice, providing that there is enough coverage to pay off your mortgage in full and cover any other necessary expenses, including income replacement for your dependents after you pass away.

Term life insurance is simply more affordable and flexible. You may even want to purchase a separate term insurance policy to cover the mortgage; it’s up to you.

That being said, mortgage life insurance is not bad, and it may be the right solution in some situations. For example, if you don’t have a term life insurance policy in place, or your term coverage is not high enough to cover the mortgage on the new home you’re buying, you may want to sign up for mortgage life insurance, at least until you can meet with your insurance advisor and adjust your term insurance policy.

The worst thing you can do is not have any life insurance coverage and leave your family unprotected with a new mortgage.

Another situation where you may be willing to take the mortgage life insurance is if you also want the mortgage disability or critical illness coverage your lender offers. These are added benefits that can be tied to mortgage insurance. Unfortunately, it is almost always conditional upon you also taking the mortgage life insurance.

Term life insurance plans don’t offer a disability or critical illness benefit. You have to purchase an entirely separate policy. Of course, that is also an option, but a less straightforward one than just getting everything done in one policy through your mortgage lender.

Ultimately, the choice between mortgage insurance and term life insurance depends on your personal situation and preferences. Take the time to carefully understand the differences and consider consulting with a financial professional to make an informed decision that best suits your needs and protects your family’s financial future.

FAQs

Is mortgage insurance mandatory, or can I choose term insurance?

Mortgage insurance is not mandatory; you can choose term life insurance as an alternative to protect your mortgage. When selecting between mortgage and term life insurance, assess your and your family’s needs and financial status to make the best decision for your specific situation.

Which coverage is more cost-effective: mortgage insurance or term insurance?

Term life insurance is generally more affordable than mortgage insurance. With term life insurance, your premiums remain the same during the full length of the term, and the coverage amount doesn’t decrease over time.

Mortgage insurance premiums may stay constant, but your coverage amount reduces as your mortgage balance decreases. Term life insurance offers more flexibility and portability, allowing you to change mortgage lenders or homes without losing coverage.

Can I have both mortgage protection and term life insurance?

Yes, you can have both mortgage and term life insurance if you believe this combination suits your needs the best. Some homeowners prefer to have mortgage insurance as a safety net specifically for their mortgage while holding a term life insurance policy to provide additional financial protection for their families in the event of death. The choice depends on your individual financial circumstances and preferences.

AIR MILES is a longstanding loyalty rewards program that allows you to earn points that you can redeem for merchandise, events, flights, and more.

The best way to accumulate AIR MILES quickly is by shopping with an AIR MILES credit card. These rewards credit cards pay you bonus miles for shopping at AIR MILES partners and eligible grocery stores. They also have other benefits like fuel discounts and complimentary insurance protections.

I’m sharing our list of Canada’s best AIR MILES credit cards in this article.

Best AIR MILES Credit Cards in Canada

You’ll notice that all of the Air Miles credit cards on our list are BMO credit cards. The reason for that is simple – BMO owns the Air Miles rewards program after completing its acquisition in June 2023. American Express did have co-branded Air Miles credit cards, but those were discontinued as of September 30, 2023. Therefore, the best Air Miles credit cards belong to BMO.

1. BMO AIR MILES World Elite Mastercard

The BMO AIR MILES World Elite Mastercard is our choice for the best AIR MILES credit card. In addition to a generous welcome offer, it allows you to accelerate your AIR MILES earnings, especially if you use the card for most of your spending.

You’ll earn 3X the miles on every $12 you spend at AIR MILES Partner stores, 2X the Miles for every $12 you spend at eligible grocery stores, and 1 Mile for every $12 you spend on all other purchases.

In addition to earning AIR MILES, the card comes with a wide range of additional benefits. For example, each year, you qualify for a 25% discount on one worldwide AIR MILES flight redemption. You get a complimentary airport lounge membership through Mastercard Travel Pass provided by DragonPass.

The card also includes complimentary BMO AIR MILES World Elite Travel Medical Insurance, Purchase Protection, and Extended Warranty coverage.

Card Features:

• Welcome Offer: 2,000 AIR MILES Bonus Miles and $120 annual fee waived for the 1st year.
• $120 annual fee (waived for the first year)
• 20.99% Purchase interest rate
• Earn 3x AIR MILES at participating AIR MILES Partners
• Earn 2X AIR MILES at eligible grocery stores
• Earn 1 Mile for every $12 spent on all other eligible purchases
• AIR MILES flight redemption: 25 discount on one worldwide flight each calendar year
• Membership in Mastercard Travel Pass provided by DragonPass (private airport lounges)
• Travel and Medical Insurance
• Extended Warranty and Purchase Protection

Click Here to Sign Up for a BMO AIR MILES World Elite Mastercard

2. BMO Air Miles Mastercard

The BMO AIR MILES Mastercard has fewer benefits than the AIR MILES World Elite, but it offers plenty of value nonetheless. It’s a no-annual-fee credit card that includes a decent Welcome Offer. At the time of writing, you’ll receive 800 AIR MILES Bonus Moles ($80 value) and a 0.99% introductory interest rate on balance transfers for 9 months. Note that a 2% transfer fee does apply.

The standard reward earning rate is about 50% of the AIR MILES World Elite. For example, you still get 3X the miles from participating AIR MILES Partners, but you must spend $25 instead of $12. The same goes for the 2X the Miles at eligible grocery stores. You can also double up your Shell Go + Miles on eligible fuel and in-store purchases.

Card Features:

• Welcome Offer: 800 AIR MILES Bonus Miles ($80 Value), plus 0.99% introductory interest on balance transfers (2% transfer fee applies.)
• No annual fee
• 20.99% Purchase interest rate
• Earn 3x AIR MILES at participating AIR MILES Partners ($25 spend)
• Earn 2X AIR MILES at eligible grocery stores ($25 spend)
• Double the Miles on Shell Go+ purchases
• Add an additional cardholder for free
• Extended Warranty and Purchase Protection
• 25% discount on car rentals through National Car Rental and Alamo Rent-a-Car
• Discounts at Cirque du Soleil shows

3. BMO AIR MILES World Elite Business Mastercard

Businesses have different credit card needs than personal users. BMO recognizes this and has created an AIR MILES credit card designed specifically for business owners. In addition to helping you separate your business and personal expenses, the BMO AIR MILES World Elite Mastercard has features that make it easier to run your business.

For starters, you can get up to 22 additional cards to give to employees so they can make purchases on behalf of the business. This will also help you accumulate AIR MILES more quickly. You can also get protection against employee card abuse with BMO’s Liability Waiver Program.

If you travel for business, you can use the complimentary airport lounge membership through Mastercard Travel Pass provided by DragonPass. Unfortunately, complimentary passes are not included, but you can access an airport lounge for $32 per visit, saving the annual membership fee.

Card Features:

• Welcome Offer: Earn up to 15,000 Bonus Miles, plus the $149 annual fee is waived for the first year. (Up to $1,800 value.)
• Annual Fee: $149 (waived for the first year)
• 19.99% Purchase interest rate
• Earn 1X AIR MILE for every $12 you spend.
• Earn 4X the Miles when you shop at participating AIR MILES Partners.
• Get up to 22 additional employee cards
• Liability Waiver Program protects you from employee card abuse
• Complimentary membership in Mastercard Travel Pass provided by DragonPass
• Out of Province/Country Emergency Travel Medical Insurance
• Car rental collision damage waiver
• Trip Cancellation/Interruption Insurance
• Baggage Delay Insurance
• Purchase Protection and Extended Warranty Protection

4. BMO Air Miles Mastercard for Students

Last but not least is the BMO AIR MILES Mastercard for students. Most student credit cards are basic products with no annual fee, a low credit limit, and little to no rewards or additional benefits. You may earn a tiny percentage of cash back or get Purchase Protection and Extended Warranty, but that’s about it.

The BMO AIR MILES Mastercard for Students offers a bit more. There is a welcome offer of 800 AIR MILES Bonus Miles, with an AIR MILES Cash value of $80, and there is no annual fee.

You’ll earn 3X the Miles for every $25 you spend at AIR MILES Partner stores and 2X the Miles at eligible grocery stores (per $25 spent). And remember that you can earn AIR MILES twice by spending with your Mastercard and presenting your AIR MILES Collector card at participating stores. All of this, and you still get the Extended Warranty and Purchase Protection coverage.

Card Features:

• Welcome Offer: 800 AIR MILES
• No annual fee
• 20.99% Purchase interest rate
• Earn 3X the Miles for every $25 you spend at participating AIR MILES Partners
• 2X the Miles on eligible grocery store purchases (per $25 spent)
• Earn miles twice by presenting your regular AIR MILES card
• Extended Warranty and Purchase Protection
• Up to 25% discount at National Car Rental and Alamo Rent-a-Car locations
• Discounts to Cirque du Soleil shows
• Add an additional cardholder for free

Final Thoughts

Not everyone is a fan of the AIR MILES program. However, if you are or you spend a lot of money at participating AIR MILES Partners, then you may want to consider getting an AIR MILES credit card through BMO as it can help you maximize your earnings. Also, with BMO now in full control of AIR MILES, it will be interesting to see what changes they make to the program in the future.

FAQs

Are there any no-annual-fee AIR MILES credit cards in Canada?

The BMO AIR MILES Mastercard is a no-fee credit card that pays you Air Miles rewards. You’ll get 3X the Miles for every $25 you spend at AIR MILES partner stores and 2X the Miles for every $25 you spend on groceries.

What are AIR MILES Dream Miles?

You can earn Dream Miles or Cash Miles as an AIR MILES member. Cash Miles can be redeemed for cash rewards, like an in-store rebate. You can redeem Dream Miles for non-cash rewards, like air miles flights, rental cars, concerts, and merchandise. For more details, check out the AIR MILES website.

What are the best credit cards for international travel?

If you travel internationally, the best credit card for you will depend on where and how you travel and your personal spending habits. For example, if you usually fly on Air Canada and its partners when you travel outside of Canada, then you’ll get the most earning power from an Aeroplan credit card.

At the same time, if you like flexible redemption options, you might prefer a travel credit card that’s not affiliated with a specific airline. For example, the Scotiabank Passport Visa Infinite Card or the American Express Cobalt Card offer travel-related benefits and points redeemed for flights, hotels, car rentals, vacation packages, and more.

Another consideration is foreign transaction fees. If you spend a lot of time outside Canada, make sure you get a credit card that waives the foreign transaction fee on transactions.

Is it worth using an AIR MILES credit card for flights in Canada?

Using an AIR MILES credit card can be worthwhile if you travel frequently or plan to redeem for flight rewards or other travel-related purchases. It is important to consider your spending habits, redemption options, and the value of each mile earned to determine if an air miles credit card is the right choice for you.

In this Simplii Financial review, I’ll cover their products and pricing, share the pros and cons, and a couple of Simplii alternatives to help you decide if Simplii Financial is worth considering.

What Is Simplii Financial?

Simplii Financial is a Canadian online bank and the Canadian Imperial Bank of Commerce (CIBC) digital banking arm. Simplii Financial offers a range of products, including chequing, high-interest savings, a no-fee cash back credit card, investments, mortgages, and personal loans.

Simplii Financial Products

Here’s a closer look at some of the main products offered by Simplii Financial.

Chequing Account

Simplii Financial offers customers a No-Fee Chequing Account with no transaction limits and no minimum deposit requirement. The account can be connected to a Simplii Debit Mastercard, which you can use to make purchases online or in-store or withdraw cash at over 3,400 CIBC ATMs Canada-wide.

$400 Welcome Offer

Simplii is currently offering a $400 Welcome Bonus to new chequing customers. To qualify, you must open a no-fee chequing account and add an eligible direct deposit of at least $100 per month for three straight months. See Simplii Financial for a full list of terms and conditions.

High-Interest Savings Account

If you’re looking for a way to earn interest on your short-term savings, Simplii Financial has you covered with its High-Interest Savings Account. The account has no transaction fees and no minimum balance requirement. And while the standard interest rate isn’t as high as what competitors like EQ Bank or Neo Financial offer, Simplii does have a generous welcome offer for new clients

6% Welcome Offer

Until January 31, 2025, you can earn 6% interest for the first five months when you open a Simplii Financial High Interest Savings Account.

GICs

Simplii Financial offers a lineup of GIC products with terms ranging between 1 and 5 years. Of note, their 1-year GIC is paying a very competitive 5.35%. Interest rates as of this writing are as follows:

• 1 Year 5.35% APY
• 2 Year 5.30%
• 3 Year 5.00%
• 4 Year 5.00%
• 5 Year 5.00%

Note: The Canada Deposit Insurance Corporation covers Simplii Financial GIC products up to the prescribed limits.

Simplii Financial Credit Card

The Simplii Financial Cash Back Visa card is a no-annual-fee credit card that offers cash back rewards.

The standard cash back earning rates are as follows:

• 4% on eligible restaurant, bar, and coffee shop purchases, up to $5000 spent per year.
• 1.5% cash back on eligible gas, groceries, drugstore purchases, and preauthorized payments, up to $15,000 spending per year.
• 0.5% cash back on all other purchases (no spending limit.)

As mentioned, there is no annual fee, and the cash purchase interest rate is 20.99%.

Mortgages

Simplii Financial offers fixed and variable mortgages, with terms ranging from 6 months (convertible) to 10 years. If you’re interested in going for a mortgage with Simplii, you can request a call from a Simplii Mortgage Specialist by completing a contact form on the website.

Loans

You can access personal loans and lines of credit through Simplii Financial. You can start an application online or by calling a Simple representative at 1-888-723-8881.

Simplii offers competitive interest rates and flexible repayment options to help you access funds when needed while staying on top of your financial goals.

Simplii Financial Online Banking

You can access your Simplii accounts via their website or mobile banking app, which is available for both iOS and Android devices. The Simplii Financial mobile app lets you deposit cheques, transfer money between accounts, make a credit card payment, or set balance alerts.

Simplii Customer Service

Simplii Financial offers several ways to get in touch, including phone, email, and live chat. Their customer support team is available 24/7 to assist with any banking inquiries or issues you may face. Simplii Financial’s website also includes a comprehensive FAQ section, which addresses common questions and concerns.

Is Simplii Safe to Use?

Simplii Financial is a subsidiary of the Canadian Imperial Bank of Commerce (CIBC), one of Canada’s largest and most established banks. As a result, you can expect a high level of security and trustworthiness from Simplii.

Your deposits with Simplii Financial are insured by the Canada Deposit Insurance Corporation (CDIC). This means that if Simplii were to fail, CDIC would provide coverage for your eligible deposits up to a limit of $100,000, ensuring your funds are protected. This insurance includes savings accounts, chequing accounts, and GICs with terms of 5 years or less.

Simplii also uses top-notch security measures to protect your personal information and account details. They employ encryption, firewalls, and secure login procedures to safeguard your account from unauthorized access.

Simplii Alternatives

If you’re searching for an online bank that can handle your day-to-day banking needs, Simplii Financial has plenty to offer. But it’s not the only online bank in Canada. Here are some Simplii Financial alternatives worth considering.

Tangerine

Tangerine is probably the closest competitor to Simplii Financial regarding its product lineup. Like Simplii, they offer no-fee chequing and high-interest savings, with similar welcome offers on both products.

Tangerine offers two Mastercard credit cards, both cash back rewards cards. What I like about the Tangerine cards is the flexibility. You can select up to three bonus cash back categories based on your spending habits. Otherwise, the cards are very similar to the Simplii Financial Visa card.

One product Tangerine offers that Simplii doesn’t is a business banking account. In fact, you can open business savings and business GIC accounts in Canadian and US dollars.

EQ Bank

EQ Bank is one of the most buzzworthy online banks in Canada. In fact, they were recently named the #1 Bank in Canada on the Forbes 2023 list of the World’s Best Banks.

EQ doesn’t offer as many products as Simplii Financial (they don’t offer personal loans, lines of credit, or investment funds), but they provide superior savings and GIC account rates. For example, EQ Bank’s standard savings APY is 3.00%, compared to 0.40% at Simplii Financial. And they currently offer 5.75% APY on a 1-year GIC (vs. 5.35% at Simplii).

When you bank with the EQ Bank card, you’ll get free withdrawals at any ATM in Canada, cash back on your purchases, and no foreign exchange fees on purchases made outside Canada.

Note that the EQ Bank Card is not currently available in Quebec.

Simplii Pros and Cons

There’s a lot to like about Simplii Financial, but like anything else, it has a few drawbacks. Here’s my list of pros and cons.

Pros:

• No-fee banking
• Generous welcome offers on chequing, savings, and credit card
• Backed by a major Canadian bank (CIBC)
• Free access to CIBC’s massive ATM network
• Wide range of banking products available
• Competitive interest rates on GICs (especially the 1-Year GIC)

Cons:

• Standard interest rates are lower than some competitors, like EQ Bank
• Difficult to deposit cash
• Only one credit card product (no premium rewards credit card option)
• No business banking accounts offered

The Bottom Line on Simplii Financial

Simplii Financial is a solid online banking platform, but it doesn’t stand out amongst some pretty stiff competition. For example, it’s tough to compete with EQ Bank and the rates they offer on their Savings Plus and GIC accounts. It’s similar to Tangerine, although Tangerine’s credit card offering is superior.

I do like the generous welcome offers. If you have a large savings balance and can take advantage of the 6% bonus interest, it’s well worth considering.

Overall, I’d say that Simplii appeals most to existing CIBC customers who want free online banking but don’t want to have to switch to another bank entirely.

FAQs

Is Simplii Financial safe and secure?

Yes, Simplii Financial is a safe and secure digital bank in Canada. It is backed by CIBC (Canadian Imperial Bank of Commerce), one of the country’s largest and most reputable banks. Simplii Financial follows strict security measures to protect your financial and personal information. They use encryption technology, fraud monitoring, and frequent security updates to ensure your safety and security while banking with them.

What are the fees and charges associated with Simplii Financial?

Simplii Financial is known for its low or no-fee banking services. They offer chequing and savings accounts with no monthly fees or minimum balance requirements. Their cash back Visa credit card is also a no-fee card. Transactions and bill payments are typically free, but some fees may apply for certain services like bank drafts and wire transfers.

Can I use Simplii Financial for both personal and business banking?

Simplii Financial primarily focuses on personal banking services. As of now, they do not offer specific business banking services. If you’re seeking business banking solutions, you may want to explore other options tailored to your needs.

VGRO offers investors exposure to a diversified blend of stocks and bonds with a focus on long-term growth and a medium risk level. In this VGRO ETF review, I’ll provide an overview of the fund and explore what makes it an attractive option for investors.

What Is Vanguard?

Vanguard is one of the world’s largest investment management companies, with over $8 trillion in assets under management. It’s the world’s largest provider of mutual funds and the second-largest ETF provider. While Vanguard is a US-based company, it entered Canada in 2011 and offers several ETFs specifically for the Canadian market. Their one-fund ETF solutions, like VGRO, have become increasingly popular among investors.

VGRO is designed to provide long-term growth through a mix of 80% equities and 20% bonds, appealing to those seeking a balance between risk and reward. Given its diversification and relatively low management fees, VGRO has become an increasingly popular choice among Canadian investors.

What Is VGRO?

The Vanguard Growth ETF Portfolio, or VGRO, is an all-in-one Exchange Traded Fund (ETF) that provides a mix of 80% equity and 20% bonds. It’s designed for investors who want long-term growth at a medium risk level. The portfolio is fully diversified, offering exposure to both Canadian and global markers, and is automatically rebalanced. With an average MER of only 0.25%, VGRO is also known for its low fees

VGRO ETF At-A-Glance

What Is It? An asset allocation ETF offering a complete portfolio solution in a single fund.

Key Features:

• Ticker: VGRO
• Exchange: Toronto Stock Exchange
• Inception Date: January 25, 2018
• Net Assets: $4.1 billion
• Distribution: Quarterly
• Management Fee: 0.22%
• MER: 0.24%
• Number of Stocks: 13,619
• Price/Earnings Ratio: 15.3X
• Number of Bonds: 18,996

VGRO ETF Fund Overview

VGRO ETF Investment Objective

According to Vanguard, (VGRO) “seeks to provide long-term capital growth by investing in equity and fixed-income securities.” It aims to achieve this objective by investing primarily in broad-based index funds. While the target asset mix is 80% stock and 20% bonds, the fund manager may adjust the mix occasionally.

VGRO ETF Holdings

Because VGRO is an all-in-one ETF, its holdings are a mix of individual Vanguard ETFs, which means that it indirectly invests in the stocks and bonds those ETFs hold. At the time of writing, VGRO holds the following ETFs:

Underlying ETF Weighting

• Vanguard U.S. Total Market Index ETF 35.41%
• Vanguard FTSE Canada All-Cap Index ETF 23.60%
• Vanguard FTSE Developed All Cap ex North America Index ETF 15.46%
• Vanguard Canadian Aggregate Bond Index ETF 11.75%
• Vanguard FTSE Emerging Markets All Cap Index ETF 5.59%
• Vanguard Global ex-U.S. Aggregate Bond Index ETF (CAD-hedged) 4.20%
• Vanguard U.S. Aggregate Bond Index ETF (CAD-hedged) 3.98%

VGRO’s geographic exposure includes Canada, the U.S., internationally developed markets, and emerging markets. Equity holdings include the following industry sectors: financials, technology, healthcare, and consumer sectors.

Here are the top 10 equity holdings of the fund:

• Apple, Inc.
• Microsoft Corp.
• Royal Bank of Canada
• Toronto-Dominion Bank
• Amazon.com., Inc.
• NVIDIA Corp.
• Enbridge Inc.
• Canadian Natural Resources Ltd.
• Canadian Pacific Kansas City Ltd.
• Canadian National Railway Co.

VGRO ETF Performance

Keeping in mind that past returns are not indicative of future performance, here is a summary of VGRO’s recent performance:

• In 2020, it posted a return of 10.89%.
• In 2022, it posted a return of 14.97%
• In 2023, it posted a return of (11.21%)
• The average annual return since inception is 5.20%.

VGRO ETF Fees

One of the biggest drawing factors of any ETF is its low fees, and VGRO is no different. Its Management Expense Ratio (MER) is 0.24%, much lower than what you would pay for an asset allocation mutual fund.

For example, take TD’s Comfort Growth Portfolio (TDB888). Like VGRO, the fund is a “fund-of-funds” with an 80%/20% mix of equity and income and aims to provide a complete portfolio solution in a single fund. However, the MER on TD’s fund is 2.13%, making VGRO the far cheaper option.

Single broad-based index ETFs can achieve even lower MERs than VGRO, but they don’t offer the same level of diversification, leaving the investor in charge of portfolio rebalancing. With VGRO, you’re paying a slight premium for the added simplicity.

VGRO vs. XGRO

Many investors struggle to choose between VGRO and another popular Canadian all-in-one ETF, XGRO, from BlackRock iShares. The iShares Core Growth ETF Portfolio has a lot in common with VGRO. Here’s a closer look at how the two funds compare:

Risk and Volatility: Both VGRO and XGRO ETFs have a similar asset allocation, with 80% in equities and 20% in bonds, making their risk profiles quite alike. However, XGRO has slightly more exposure to US equities (36.5% vs. 31%) and less Canadian equity (20.51% vs. 23.2%). If you believe strongly in the long-term prospects of the U.S. market over the Canadian market, you may want to consider holding XGRO in your portfolio.

Historical Returns: Since 2019, XGRO has slightly outperformed VGRO. For example, in 2019, XGRO delivered a return of 17.96% vs. 17.66% for VGRO. In 2022, XGRO had a negative return (-11.0%), while VGRO was slightly worse at -11.21%. Part of the difference lies in the fact that XGRO has a slightly lower MER, but the fact that XGRO has more exposure to the U.S. market also played a role.

Again, keep in mind that past performance does not guarantee future results.

Distribution Yield: VGRO’s distribution yield is currently 2.08%, which is higher than XGRO’s yield of 1.71%. Both ETFs include stock dividends and bond interest payments in their distribution yields.

The bottom line is that both VGRO and XGRO have similar risk profiles and asset allocations, but there are slight differences in their equity exposure and historical returns. To find the best fit for your portfolio, I recommend choosing the one that aligns best with your investment goals and risk tolerance.

Where Can I Buy VGRO?

The easiest way to buy shares of VGRO is through a self-directed online brokerage. There is no shortage of online brokers to choose from in Canada, but you will save money by selecting a brokerage that allows you to purchase ETFs commission-free.

For this, I recommend Questrade, one of the largest independent brokerages in Canada. The nice thing about Questrade is that it offers free ETF purchases, including VGRO (There is a small fee to sell ETFs).

Click Here to Get Started with Questrade

Wealthsimple Trade also offers commission-free trading. The user-friendly platform is suitable for investors who don’t need access to more sophisticated market research tools and advanced trading dashboards.

Click Here to Get Started with Wealthsimple Trade

If you’re not concerned about trading fees, TD Direct Investing is Canada’s largest online brokerage and boasts top-notch research capability and advanced trading dashboards. However, you will pay a hefty $9.95 trading fee for every ETF purchase you make.

FAQs

What are the VGRO’s top equity holdings?

VGRO’s top equity holdings include companies like Apple, Microsoft, and Amazon, as well as Canadian stocks like Royal Bank of Canada and Toronto-Dominion Bank. It also invests in international markets and various types of bonds, giving you a balanced mix of assets in your portfolio.

How does VGRO compare to VEQT?

VGRO and VEQT are both popular Vanguard all-in-one ETFs, but they have different investment objectives. VGRO is a slightly more conservative option, with a mix of stocks and bonds, while VEQT invests exclusively in equities. As a result, VEQT may offer higher potential returns, but it also comes with a higher level of risk, making it better suited for those with a higher risk tolerance and a longer investment horizon.

Is investing in VGRO considered low-risk?

While VGRO is considered a balanced and diversified investment option, it is essential to remember that no investment is entirely risk-free. VGRO is designed to provide a mix of stocks and bonds, which can help moderate the overall level of risk in your portfolio, but its value will fluctuate, and there is always a risk that you could lose money.

How often does VGRO distribute dividends?

VGRO currently distributes dividends quarterly. These payments are collected from both stock dividends and bond interest payments held within the ETF. However, the dividend yield and the payment amount might vary throughout the year, depending on market conditions and the performance of the underlying assets.