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Open/Non-Registered

/ Investment Account Types, Financial Orientation

The next section of the Action Financial Group Orientation Series will deal with Investment Account Types.

An account is not an investment; it is a container that holds one or more investments. Different containers have different features such as size, shape or colour, one hole in the bottom or none, a lid or no lid; different accounts have different features too, such as tax treatment, size limitations, or rules about contributions and withdrawals. Not all accounts are suitable at different life stages or circumstances and it’s always best to seek advice.

Open, Cash & Non-Registered Accounts

 Open, Cash and Non-Registered are all the same thing, just three different names; sort of like saying a house, or bungalow, or ranch are all the same thing, just by a different name.

This is an account type that has no special registrations or tax treatments. It is just “out in the open”. Your bank account is the simplest form of “open” or “cash” account. You put cash in, there is no tax deduction for this deposit. If you earn any interest, it is taxable in the year you earn it. You can also hold other investments in an open account. You can buy a wide variety of investments (which we will discuss in more detail in the coming weeks) with funds you earned and already paid tax on. Any further investment income or growth is taxable.

There is no limit on how much you can invest in an open account, nor any restriction on taking it back out. And you can recontribute any time you want. An open account is the most flexible, but also has no tax benefits attached to the account type. For most people, accumulating investments in an open account would only be beneficial when the advantages of other account types have been considered and exploited.

One last point, just because we refer to this type of account as “cash” does not mean that only cash is held in the account: other investments (which we will explain in future) can also be held in a “cash” account. Next week we will focus on Pension Plans, which is also an Investment Account Type. We hope you will find this information valuable and will increase your financial confidence. You can always find these articles on our website www.actionfinancialgroup.com.

Karin Rimnyak, Certified Financial Planner®

Investment Advisor



David Dryburgh, Certified Financial Planner­®
Investment Advisor


Ian Barrie, Certified Financial Planner®
Investment Advisor


This information has been prepared by Karin Rimnyak who is an investment Advisor for iA Private Wealth. Opinions expressed in this email are those of the Investment Advisor only and do not necessarily reflect those of iA Private Wealth. iA private Wealth Inc. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. iA Private Wealth is a trademark and business name under which iA Private Wealth Inc. operates.

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iA Private Wealth Inc. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. iA Private Wealth is a trademark and a business name under which iA Private Wealth Inc. operates.

This is not an official website or publication of iA Private Wealth and the information and opinions contained herein do not necessarily reflect the opinion of iA Private Wealth. The particulars contained on this website were obtained from various sources which are believed to be reliable, but no representation or warranty, express or implied, is made by iA Private Wealth, its affiliates, employees, agents or any other person as to its accuracy, completeness or correctness. Furthermore, this website is provided for information purposes only and is not construed as an offer or solicitation for the sale or purchase of securities. The information contained herein may not apply to all types of investors. The Investment Advisor can open accounts only in the provinces where they are registered.

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