RRSP Rules

Labour Sponsored Investment Funds (LSIF)

Top Ten RRSP
Planning Strategies

Marginal tax rates
by source of income

Financial Calculators

 

 

Labour Sponsored Investment Funds

The Investment Opportunity

E2 Venture Fund Inc. is a labour-sponsored investment fund (‘LSIF’) with a focus on companies developing new technologies and solutions in energy and process efficiency. The global energy market is experiencing enormous change due to technological advancements, increased competition, regulatory changes and environmental concerns. Globally, $10 to $15 trillion will be invested in renewable energy projects in the next 20 years. The demand for resource efficiency will be equally strong. In the Canadian municipal water infrastructure industry alone, the required investment needed is estimated to be in excess of $90 billion by 2012. These areas and others such as nanotechnology and new materials will create many excellent investment opportunities for investors in the E2 Venture Fund. Until investments are made in these types of companies, investors will have their work put to work for them immediately — in a note linked to the S&P 500 Index.

Key Benefits

• 35% tax credit, up to $1,750

•Tremendous growth potential of the energy, efficiency and environmental sectors

•A $5,000 investment can cost as little as $930

•Participation in the S&P 500 Index — initially 100% of the Fund’s assets will be linked to the performance of this world leading index

•Increased RRSP foreign content limit to 50%

The following details tax savings for residents of Ontario


Taxable Income

$20,000-$30,754

$30,755-$53,650

$53,651-$61,509

$61,510-$63,365

$63,366-$100,000

over
$100,000

RRSP Investment

$5,000

$5,000

$5,000

$5,000

$5,000

$5,000

RRSP Tax Savings

$1,110

$1,562

$1,654

$1,970

$2,170

$2,320

LSIF Savings

$1,750

$1,750

$1,750

$1,750

$1,750

$1,750

Total Tax Savings

$2,860

$3,312

$3,404

$3,720

$3,920

$4,070

After Tax Cost of Investment

$2,140

$1,688

$1,596

$1,280

$1,080

$930

Investment must be held for 8 years to keep tax credits

Only available in Ontario. Tax credits include 15% federal and 20% Ontario tax credit. Tax rates are based on 2001 personal income tax rates. RRSP tax savings assumes the marginal rate applies to the full amount of the deduction. RRSP tax savings are available on any RRSP eligible investment and tax is payable on all amounts withdrawn from RRSPs. Important information about the Fund is contained in its prospectus. Please obtain a copy from a licensed dealer and read it carefully before investing. Commissions, trailing commissions, management fees and expenses all may be associated with this investment. This fund is not guaranteed and its value changes frequently and past performance may not be repeated.