AssignmentSavings&InvestmentWebsiteorBlog

CreateaBlogorWebsitetoeducatethepublicabouttheworldofsavings&investing.Chooseoneofthewebsitetoolsbelow.You
mustcreateanaccountandchoosetheFREEnocostoptionbeforeyoubeginbuildingyourwebsite:

http://www.weebly.com/
OR
http://www.wix.com/

Blog/WebsiteRequirements:
HomepagewithlinkingtabstoeachSavingsandInvestmentOption
1separatewebpageforeachsavingsandinvestmentoption(10pages)

ForeachWEBpage:
provideasimpledefinitionofthesavingsorinvestingoption
Listkeythingstoknowaboutthesavingsorinvestingoption
List23advantages&disadvantagesforeachsavingsorinvestingoption
Researchfinancialwebsitestofindoneactualexampleforeachsavingsorinvestingoption#1,2,3,8,9,10only.
Includesomescreenshots,images,andchartstomakeyourwebpagesvisuallyinteresting
InsertsomeYoutubeclipstohelpeducatethepublicaboutsomeofyoursavings/investments

SavingsOptions Suggestedwebsites
1)Savingsbankaccount Chooseonespecificsavingsbankaccountproductfromthelinksbelow:
Listanyterms&conditionsforusingyourselectedsavingsbankaccount
Anyminimumbalancerequired?
Interestrateoffered?
http://www.rbcroyalbank.com/products/deposits/savingsaccounts.html
http://www.rbcroyalbank.com/rates/persacct.html

Definition:Asavingsbankaccountprovidesprincipalsecurityandamodestinterestrate.
Accountholdersmaynotbeabletowritechecksfromtheaccountwithoutpayingextrafees
orexpenses.Theremaybelimitedaboutoftransactionsthatyoucanmake.Asavings
bankaccountisconsideredtobeoneofthemostliquidinvestments.Theyareusuallyfor
moneythatyoudontdependonusingeveryday.Additionally,ifyouwanttostartaSavings
BankAccount,youmustgotoyourlocalbankwithidentificationandtheywillopenyour
account.Youcanputinmoneyatanytimeyouwouldlike.

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WhatIKnow:
PaylowerinterestratesthanTreasurybills.
Shouldnotbethereforlongtermholdingperiods.
Modernonesofferaccesstofundsthroughvisitsatalocalbranchandontheinternet.

Advantages:
Providesprincipalsecurityandmodestinterestrates.
Keepsyourmoneyliquid(abilitytobeturnedintocash).
Youcangetstartedwithminimalcash.

Disadvantages:
Moderatereturns,thereturnsarenottoohigh.
Somehavewithdrawallimitations,itishardtomakeregulartransactions.
Somehaveminimumbalancerequirements,youmuststartwithaninitialdeposit.
Similarly,youmustpay$5to$10dollarsasamonthlypayment.

Example:RBCSavingAccount:RBCHighInteresteSavings
1.050%interestoneverydollar.
Nominimumbalanceandnomonthlyfee.
Accessyourfundsanytimeforfree.
CanadianCurrencyonly.
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2)CSB(CanadaSavings
Bond)orCPB(Canada
PremiumBond)
ChooseonespecificCSBorCPBavailableforpurchasefromthelinksbelow:
Minimuminvestmentrequired?
Interestrateoffered?
Maturitydate?(Whatisthedatetheinvestmentcomesdue?)
http://www.csb.gc.ca/canadasavingsbondsprogram/products/
http://www.csb.gc.ca/canadasavingsbondsprogram/rates/

Definition:CanadaSavingsBondsandCanadaPremiumBondsareinvestmentsoffered
bytheGovernmentofCanada.TheyareonsalebetweenearlyOctoberandDecember
onceeveryyear.Theyaredebentures,meaningthattheyhaveafixedrateofinterest.
FinancialproductsareissuedbytheBankofCanadaandclaimstoofferacompetitiverate
ofinterestandhasaguaranteedminimuminterestrate.
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WhatIKnow:
Bondsarecashable
Theyaregreen,andthepictureofthePeaceTowerandtheParliamentbuildingof
Ottawaareonit.
Now,therearepicturesoftheCenotaphofOttawaonit.
CPBsaregoldenandhavetheCanadianWarMuseumonthem.

Advantages:
Canbewithdrawnatanytimeatmostofthebigbanks.
Goodforpeoplewhodependoninterestincomefordailyexpenses.
GoodforpeoplewhotrustCanadiancompaniesonly.Iftheyencounteranyproblems,
theycangotoaheadofficeeasily.

Disadvantages:
Ratesaredeterminedbyprevailingmarketconditions.Ifmarketsaredoingwell,
youwillnotgethighprofit(lowinterestrates).
Fullytaxedasincomeatthemarginaltaxrate.Thehighertheincome,themoretax
youwillhavetopay.
Takesawhiletoearninterest.Somepeoplewanttostartearninginterestonday1
however,thisdoesnothappenwithCanadianSavingsBonds/CanadianPremium
Bonds.
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3)GIC(GuaranteedInvestment
Certificate)orTermDeposits
ChooseonespecificGICavailableforpurchasefromthelinksbelow:
Minimuminvestmentrequired?(ex.$1000$4999)
Interestrateoffered?
LengthofTerm?(howmanymonthsoryearsdoestheGIClastbeforeitcomes
due?)
https://www.investorsedge.cibc.com/ie/educationcentre/topics/fixedincome/gicsde
scription.html
https://www.cibc.com/ca/rates/gicrates.html

Definition:GICsorTermDepositsareasafewaytoinvestmoneybecauseinitial
investmentsareprotected.Canadianinvestmentthatprovidesaguaranteedrateofreturn
overaperiodoftime.Duetoitslowriskprofile,returnisgenerallylessthanother
investmentslikestocks.

WhatIKnow:
GuaranteedInvestmentPlanyouwillbegivenaprofitandaremadewithbank..
Payasetrateofinterest.

Advantages:
SafetyandSecurityOriginalinvestmentsandinterestpaymentsareguaranteed.
Flexibletermsareavailabletermsrangefrom30daysto5years.
Eligiblefornonregisteredandregisteredinvestmentplans.

Disadvantages:
Oftencarrypenaltiesifyoucashthembeforethetermends.
Requirelargeminimumdeposits.

Example:CIBCLongTermGIC
$1000$99999initialpayment.
Interestratesareoffered.
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84monthsbeforethelastGICisdue.

SavingsPlans SuggestedWebsites
4)RRSP DescribetheRRSPaccount.Howdoesitwork?
List23advantages23disadvantages
http://www.getsmarteraboutmoney.ca/en/managingyourmoney/investing/rrspsforretirem
ent/Pages/default.aspx#.U5Bhs_ldWSo
http://www.getsmarteraboutmoney.ca/en/managingyourmoney/investing/rrspsforretirem
ent/Pages/HowRRSPswork.aspx#.U5BhlvldWSo
LookforgraphsthatshowthebenefitsofinvestinginRRSPsasearlyaspossible.
NospecificexampleofanactualRRSPaccountisrequired!

Definition:RegisteredRetirementSavingsPlanisaCanadianaccountthatholdssavingsand
investmentassets.Therearetaxesinvolved.Itwasintroducedin1957topromotesavingsfor
retirementandselfemployedpeople.

WhatIKnow:
YousetupanRRSPwithabank.Afterwards,youcanchoosebetweenacommonlaw
partnerRRSPoraselfdirectedRRSP.

71yearsisthatlastyeartomakecontributiontoanRRSP.
Youtransfermoneyinandout.

Advantages:
Therearetaxdeductiblecontributions.yougettaxrelieffromdeductingRRSP
contributiontoyourincomeeachyear.
TaxshelteredearningsThemoneyyoumakeonanRRSPinvestmentisnottaxedas
longasitstaysontheplan.
TaxdeferralsYoupaytaxwhenyouwithdrawfromanRRSP.Thisincludesinvestment
earningsandcontributions.
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Disadvantages:
RetireescanpaymoretaxTaxableincomeincludesRIFwithdrawalsand
employer/governmentpensions.
Ifowneroftheaccountpassesaway,taxesarepaidbytheestatepriortotheRRSP
proceedsoftheaccountdies.
5)RESP DescribetheRESPaccount.Howdoesitwork?
List23advantages23disadvantages
http://www.getsmarteraboutmoney.ca/en/managingyourmoney/investing/respsforeducati
on/Pages/default.aspx#.U5BiLfldWSo
https://www.cibc.com/ca/education/
https://www.cibc.com/ca/education/benefitsofanresp.html
NospecificexampleofanactualRESPaccountisrequired!

Definition:RESPs(RegisteredEducationSavingsPlan)isopenedforkids,buttheycanalsobe
openedforparentsandotheradults.Whenachildisputintopostsecondaryeducation,they
canstarttakingeducationalassistancepayments(EAPs)fromtheRESP.

WhatIKnow:
Personwhoopenstheaccountiscalledasubscriber.
ThepersonwhoreceivestheEAPsiscalledthebeneficiary.

Advantages:
Savingsgrowtaxfree.Thereisnotaxoninvestmentearnings,aslongastheystayinthe
plan.
Youcanputinmoneywhereveryouwouldlike.
Canstayopenupto36years,giveskidstimetoestablishwheretheywanttogo
therefore,theywillnotspendmoneyonaneducationthattheydidnotwant.

Disadvantages:
Incomeearnedisnotallowedtogrowonataxdeferredbasis.
Incomeearnedorrealisedcapitalgainswillbecapitalisedtheyeartheyareearned.
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InvestmentOptions SuggestedWebsites
6)Governmentbond DescribewhataGovernmentbondis.Listanykeyfeatures
List23advantages23disadvantages
https://www.investorsedge.cibc.com/ie/educationcentre/topics/fixedincome/bondsdes
cription.html(scrolldowntoGovernmentofCanadaBonds)
HowBondswork
http://www.getsmarteraboutmoney.ca/en/managingyourmoney/investing/bonds/Pages/
Howbondswork.aspx#.U5DL7fldWSo
NospecificexampleofanactualGovernmentBondproductisrequired!

Definition:Governmentbondsaredebtsecuritiesthatsupportgovernmentspendingandthey
aremostlyissuedinthecountryscurrency.Governmentdebtisownedbyanylevelof
governmentandispayedbythegovernment.Peopleinvestintogovernmentbondsinorderto
helpfederalcrowncorporationslikeCanadianWheatBoard.

WhatIKnow:
IssuedinCanadianCurrency.
MostliquidsectoroftheCanadianBonds.

Advantages:
Mostconservativetypeofbond.
Havethehighestcreditratingavailable.

Disadvantages:
Marketdealingwithinvestorsmanagersaredealersonlytherefore,itcannotbemade
online.
Dealingspreadsaccordingtoeconomicfactors.Ifeconomyisnotdoingwell,dealing
willnotoccuratthetimeyouwant.
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Dealingisdependantonthetermtomaturityontheindividualbond.Ifyouhaveno
maturitywithyourindividualbond,thedealingwillnothappenatthetimeyouwant.

HowdotheyWork?
InterestPayments:Youwillgetregularinterestpaymentswhenyouhavethebond.
Somehavefixedinterestrateshowever,somehavefloatingratesthatgoupanddown
timetotime.
SellingaBondforMoreMoneyThatYouPayed:Wheninterestratesgodown,bond
pricesgoup.Youcanmakemoneyoffofitbeforeifmatures.Youcangetmorethan
youpayedforitandkeeptheinterestthatyoumadeuntilthetimeyousellit.

7)Corporatebond DescribewhataCorporatebondis.Listanykeyfeatures
List23advantages23disadvantages
https://www.investorsedge.cibc.com/ie/educationcentre/topics/fixedincome/bondsdes
cription.html(scrolldowntocorporatebonds)
http://www.investorwords.com/1131/corporate_bond.html
NospecificexampleofanactualCorporateBondproductisrequired!

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Definition:Manybusinessesrelyonpeopletoraisefundsfortheminordertocompletetheir
operationsandfinancialprojects.Businessesborrowmoneyfrombanks,issuecommonor
preferredstocks,andissuedebt.Peoplecaninvestintocompaniesinordertohelpthemout
andthenyouwillslowlygetbackthemoneythatyouputin.

WhatIKnow:
CorporateBondshavebeenusedbybusinessesbeforeWorldWar1.

HowitWorks:
Inordertogetinterestandtheprincipalduetothemincaseofdefault,corporate
bondholdershavepriorlegalclaim.
Eachissuehasitsownrankingwithrespecttopriorities.
Bondscanbeclassifiedasseniordebts(ranksaheadofdebenture).

Advantages:
Lessriskythanstocks.
Fixedmaturitydate(130yrs).
Widerangeofratingsandyieldsbecausefinancialhealthoftheissuerscanvary.
YoucaninvestinBlueChipcompaniesthathavebondratingslikeAA.

Disadvantages:
Corporatebondsoftenpayhigherratesthangovernmentormunicipalbonds.
Changesininterestratesreflectbondprices.
Corporatebondsaremajorexchangesandaretaxable.

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8)Commonshares HowStockswork
http://www.getsmarteraboutmoney.ca/en/managingyourmoney/investing/stocks/Pages/
Howstockswork.aspx#.U5DKb_ldWSo

ChooseoneCanadianorUScorporationthatofferscommonshares
(ex.AppleInc.,Google,Walmart,Nike,Lululemon,TDCanadaTrust,Abercrombie&
Fitch,Ford,CocaCola).
Usethelinkbelowtohelpyouresearchonestockfromanycorporation:

http://www.theglobeandmail.com/globeinvestor/markets/stocks/
(typethecompanynameintothesearchboxattopofpage)

Whatisthestocksymbol?
Nameofstockexchangeittradeson(TSX,NYSE,NASDAQ)
Latestshareprice?(CADorUSD)
52weekhighestprice?52weeklowestprice?
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Dividend?(whatistheannualdollaramountpaidtoshareholdersofyour
stock?)

Definition:Commonsharesofferpotentialofgrowththroughrisingsharepricesandincreasing
dividends.Pricesofcommonsharestendtobemorevolatilethanthepricesofapreferred
stock.

WhatIKnow:
DividendPayments:Therearedividendpaymentsbutthereisnoguarunteethatyou
willreceivedividendsandtheamountifyoudo.
Therearevotesatshareholdersmeetings.
Youhaveaclaimoncompanysassets.

Advantages:
Potentialfordeliveringverylargegains.
Potentiallossfromstockpurchasedwithcashislimitedtothetotalamountoftheinitial
investment.Thisisbetterthansomeleveragedtransactionswheremaximumlosscan
exceedthetotalofthefundsinvested.
Offerlimitedlegalliability.Passivestockholdersareprotectedagainstanyliabilities
fromthecompanysactionsbeyondstheirfinancialinvestmentinthecompany.

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Disadvantages:
Stockholdersarethelasttogetpayed.Companiesfirstpayemployees,suppliers,etc.
beforetheycanpaystockholders.
Donotgettoenjoyalloftheprivilegesthattheownersoftheprivatelyheldownersdo.
Investorsmaynotknoweverythingaboutthecompany.Limitedinformationcancause
investmentdecisionmakingdifficult.

Example:TelusCorp.

StockExchangeitTradeson:TSX
LatestSharePrice:CAD
52WeekHighestPrice:42.20
52WeekLowestPrice:29.52
Dividend:1.52

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9)Preferredshares Preferredsharesvs.Commonsharescomparison
http://www.dummies.com/howto/content/howtoknowthedifferencebetweencommon
andpref.html

UnderstandingPreferredShares
http://www.bmo.com/pdf/Understanding%20Preferred%20Shares_E_FINAL.pdf

Nervousaboutinvestingincommonshares?TryPreferreds!
http://www.thestar.com/business/personal_finance/2012/12/14/nervous_about_stocks_t
ry_preferreds.html

Chooseoneofthefollowingpreferredsharesbelowandresearch:

a)RoyalBankPreferredShareseriesD
http://www.theglobeandmail.com/globeinvestor/markets/stocks/summary/?q=RY.PR.D
T
b)BellCanadaEnterprisesPreferredShareseriesA
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http://www.theglobeandmail.com/globeinvestor/markets/stocks/summary/?q=BCE.PR.
AT
c)LoblawCompaniesPreferredShareSeriesA
http://www.theglobeandmail.com/globeinvestor/markets/stocks/summary/?q=L.PR.AT

Whatisthestocksymbol?
Nameofstockexchangeittradeson(TSX,NYSE,NASDAQ)
Latestshareprice?(CADorUSD)
52weekhighestprice?52weeklowestprice?
AnnualDividend?(Thedollaramountpaidtoshareholdersxnumberofshares
owned)

Definition:Theyarehybridsecuritieswithbothequityandfixedincomecharacteristics.
Preferredsharegenerallycarriesnovotingrights,aspervalue,andpaysafixeddistribution
ratethatisdeterminedatissuance.Preferredshareshavelessrightsthanthebondsofa
companybutcarryrightsabovethosegrantedtocommonequityholders.

WhatIKnow:

TherearemainpreferredsharesinCanada:Perpetuals,floatingrates,rateresets,and
retractables.
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Effectiveportfolioconstructiontoolforinvestorsgiventheirlowcorrelationtoboth
commonstocksandfixedincome.
Lendinginterestrateriskwillbeimportantwheninvestinginpreferredshares.
Investorscanbenefitfromdiversificationpropertiesandthetaxefficientyieldor
preferredshares.

Advantages:
Fixeddividends
Paymentpriorityholdersofpreferredstocksarefirsttogetpayed.
Greaterclaimtoanyofthecompanysassets.

Disadvantages:
Dividendsdonotrisewhenthecompanymakeshighprofits.
Lessharepriceappreciation.Priceofpreferredsharesisbasedontheyieldtheyoffer.
Preferredsharestrademorelikebondthanastick.
Novotingrightsholdersofpreferredshareshavelesssaythancommonstockholders
inhowthecompanyismanaged.

Example:RoyalBankPreferredShares
Whatisthestocksymbol?
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Nameofstockexchangeittradeson(TSX,NYSE,NASDAQ)
TSX
Latestshareprice?(CADorUSD)
CAD
52weekhighestprice?52weeklowestprice?
25.93&23.34
AnnualDividend?(Thedollaramountpaidtoshareholdersxnumberofshares
owned)
1.13
10)Equitymutualfunds
(alsocalledstockfunds,
dividendfunds,growth
funds)
UnderstandingMutualFunds
http://www.osc.gov.on.ca/documents/en/Investors/res_mutualfunds_en.pdf

Howmutualfundswork
http://www.getsmarteraboutmoney.ca/en/managingyourmoney/investing/mutualfunds
andsegregatedfunds/Pages/Howmutualfundswork.aspx#.U5CI7_ldWSo

4reasonstobuymutualfunds
http://www.getsmarteraboutmoney.ca/en/managingyourmoney/investing/mutualfunds
andsegregatedfunds/Pages/fourreasonstobuymutualfunds.aspx#.U5CJC_ldWSo
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7commontypesofmutualfunds(scrolldowntoequityfunds)
http://www.getsmarteraboutmoney.ca/en/managingyourmoney/investing/mutualfunds
andsegregatedfunds/Pages/eightcommontypesofmutualfunds.aspx#.U5BpUfldWS
o

ChooseoneofthefollowingEquitymutualfundsbelowandresearch:

a)CIBCUSEquityFund
http://www.theglobeandmail.com/globeinvestor/fundsandetfs/funds/summary/?id=63950

b)CIBCNASDAQIndexFund
http://www.theglobeandmail.com/globeinvestor/fundsandetfs/funds/summary/?id=53511

c)TDUSBlueChipEquityFund
http://www.theglobeandmail.com/globeinvestor/fundsandetfs/funds/summary/?id=25996

d)TDScience&TechnologyFund
http://www.theglobeandmail.com/globeinvestor/fundsandetfs/funds/summary/?id=18358&
cid=TD%20Asset%20Management%20Inc.

FundPerformancelistfundreturns%for1yr,3yr,5yr,10yrs.
Fundobjectivewhatfinancialgoalsisthemutualfundtryingtoaccomplish?
Fundsponsornameofbankormutualfundcompanymanagingyourmoney
Assetclasswhichcategoryofmutualfundisit?(cash,equity,bonds)
TotalAssetswhatisthetotalvalueofclientmoneymanagedbythefundmanager?
Managementfeehowmuchdoesthefundmanagerchargeyouperyeartomanage
yourmutualfundinvestment?(ex.1.50%meansyourfeeis1.5%xamountinvested)
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AssetAllocationandTopHoldings.Trytoscreenshotthesechartsandpasteonto
yourwebpage(seeexamplebelow)

Ifthescreenshotoptionisnoteasyforyou,justexplainwhattheAssetAllocationpie
chartmeans,andlistafewofthetopstock/bondholdingschosenbythefundmanager.

Definition:Itistypeofinvestmentfund.Theyareopenended,whichmeansasmorepeople
invest,thefundissuesnewunitsorshares.Mutualfundtypicallyfocusesonspecifictypesof
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investments.Forinstance,afundmayinvestmainlyingovernmentbonds,stocksfromlarge
companies,orstocksfromcertaincountries.

WhatIKnow:
Riskdependsonthefundsyouinvestin.
MutualfundsarenotguaranteedorinsuredbytheCDIC.
Pastperformancescanhelptellhowyourfundswilldointhefuture.
Mutualfundsaretaxed.
Whenyoupurchaseorredeemsecuritiesofamutualfund,youpayorreceivewhatis
knownasthenetassetvalue(NAV)ofthesecurityatthetimeofpurchase,switch,or
redemption.

Advantages:
BuiltindiversificationMoneyiscombinedwithotherinvestorsanditallowsyoutobuy
apoolofinvestments.
ProfessionalManagementLeaveyourdecisiontoinvestmentmanagers.
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Disadvantages:
Highexpenseratiosandsalescharges.
ManagementabusesTurnovercanbeusedifyourmanagerisusingtheirauthorityto
theiradvantage.
TaxefficiencyInvestorshavethechoiceofcapitalgainpayoutsinmutualfunds.
PoortradeexecutionIfyouplaceyourmutualfundtradeanytimebeforethecutoff
timeforthesamedayNAV,youwillreceivethesameclosingpriceNAVforyourbuyor
sellonthemutualfund.
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Example:CIBCUSEquityFund
FundPerformancelistfundreturns%for1yr,3yr,5yr,10yrs.
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Fundobjectivewhatfinancialgoalsisthemutualfundtryingtoaccomplish?
Seeklongtermcapitalgrowthbyinvestinginadiversifiedportfolioconsisting
primarilyofequitysecuritiesofcompaniesdomiciledprimarilyintheUnitedStates.
Fundsponsornameofbankormutualfundcompanymanagingyourmoney
CIBCSecuritiesInc.

Assetclasswhichcategoryofmutualfundisit?(cash,equity,bonds)
U.S.Equity
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TotalAssetswhatisthetotalvalueofclientmoneymanagedbythefundmanager?
$54.9million
Managementfeehowmuchdoesthefundmanagerchargeyouperyeartomanage
yourmutualfundinvestment?(ex.1.50%meansyourfeeis1.5%xamountinvested)
1.75%
AssetAllocationandTopHoldings.Trytoscreenshotthesechartsandpasteonto
yourwebpage(seeexamplebelow)
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TheEnd!PublishyourwebsiteandshareyourwebsiteURLwithyourteacher.

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