7150 Hawthorne Dr. Unit 104
Windsor, ON, N8T 3N3
Phone: (519) 974-6688
Toll Free: +1 866-973-4846
Fax: (519) 974-7192
Labour sponsored venture capital corporation funds operate much like mutual funds. They are government approved corporations designed to encourage investment into private, small and medium sized businesses in Canada. Because labour funds invest in emerging, young private companies in Canada, investment growth and risk can be higher than with other equity investments.
Labour funds offer up to a 30% tax credit (15% federal plus 15% provincial) on the amount invested to a maximum investment of $5,000. Labour funds are RRSP eligible.
This chart shows the after-tax cost of investing in a labour sponsored fund outside and inside an RRSP. A 5,000 investment outside an RRSP will cost you $3,250 after taxes, but only $930 inside an RRSP if you are in the 46.40% tax bracket.
| Outside RRSP | Inside RRSP | |
| Amount Invested | $5,000 | $5,000 |
| RRSP tax savings @46.40% tax rate | N/A | $2,320 |
| Tax credit @ 35% | $1,750 | $1,750 |
| After-tax cost | $3,250 | $930 |
The contents of this website do not constitute an offer or solicitation for residents in the United States or in any other jurisdiction where either Seguin Financial Group and/ or Sterling Mutuals is not registered or permitted to conduct business. Mutual funds provided through Sterling Mutuals Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus carefully before investing. Mutual funds are not guaranteed, their values fluctuate frequently, and past performance may not be repeated.
Insurance products, and other related financial services are provided by Seguin Financial Group as independent insurance agents, and are not the business of, or monitored by Sterling Mutuals Inc.
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