Elemental Wealth Financial Acronym Glossary

Your original investment cost plus additions, used to calculate capital gains/losses when you sell.

A parallel tax calculation ensuring high-income earners pay minimum tax despite deductions. Being reformed in Canada.

The yearly cost of credit including interest and fees.

The rate needed for an investment to grow from beginning to ending balance over time, assuming reinvestment.

Tax deduction for depreciation of business property.

Monthly tax-free payment to families with children under 18.

Federal agency insuring eligible deposits up to $100,000 per institution.

Government matching grant (20% on first $2,500) for RESP contributions.

Professional designation requiring education, exam, experience, and ethics standards.

Protection up to $1 million for securities/cash if investment firm becomes insolvent.

Investment expenses reducing available capital gains deduction.

Rules determining how multiple insurance policies pay when you have overlapping coverage.

Rules determining how multiple insurance policies pay when you have overlapping coverage.

Disability insurance feature increasing benefits with inflation.

Mandatory government pension (all provinces except Quebec). Provides retirement, disability, survivor benefits.

Federal tax collection and benefits administration agency.

Automatically reinvests dividends into additional shares without commissions.

Fee charged when selling certain mutual funds within a specified period. Being phased out.

Electronic money movement between accounts.

Supplementary health insurance covering drugs, dental, vision, paramedical services.

Company's net profit divided by outstanding shares.

Investment fund trading like a stock, often tracking an index with low fees.

Tax-advantaged account for first-time homebuyers (introduced 2023). Contributions tax-deductible, withdrawals tax-free for first home.

Value of current money at a future date based on assumed growth rate.

Housing costs divided by gross income; lenders prefer under 32-35%.

Investment guaranteeing principal return plus fixed/variable interest. CDIC-insured up to $100,000.

Monthly non-taxable benefit for low-income Old Age Security recipients.

Federal consumption tax; HST combines federal and provincial tax in participating provinces.

Program allowing first-time buyers to withdraw up to $60,000 from RRSP for home purchase, repaid over 15 years.

Revolving credit secured by home equity; can borrow up to 65% of home value minus mortgage.

Savings account with competitive interest rates and easy access.

First public sale of company stock.

Document outlining investment goals, risk tolerance, time horizon, and strategy.

Penalty for breaking a closed mortgage early; can be substantial in falling rate environments.

Withdraw up to $20,000 from RRSP for full-time education/training, repaid over 10 years.

Locked-in retirement income account in some provinces providing income from pension funds with minimum and maximum withdrawal limits.

Retirement income account for locked-in pension funds (Newfoundland and Labrador); more flexible than LIF.

Insurance replacing income (60-67%) if disabled long-term, typically to age 65.

Mortgage amount divided by property value; over 80% requires default insurance.

Annual fund fee as percentage of assets; includes management, administration, operating costs.

Per-share value of mutual fund; total assets minus liabilities divided by shares outstanding.

CRA document showing tax return results, refund/balance owing, RRSP limit, TFSA room.

Insufficient money in account to cover transaction; triggers expensive fees ($45-48).

Monthly payment to Canadians 65+ meeting residency requirements; funded from general tax revenue.

Stock price divided by earnings per share; valuation metric.

Legal authority for someone to manage your finances (property POA) or healthcare (personal care POA).

Low-cost retirement plan for those without workplace pension (called VRSP in Quebec).

Current value of future money, accounting for earning potential.

Quebec's version of CPP with similar benefits.

Quebec's additional RESP grant (10% on first $2,500).

Quebec's provincial health insurance plan.

Savings plan for those with disabilities; receives government grants and bonds, tax-deferred growth.

Company owning income-producing real estate; trades on stock exchange, must distribute most income.

Education savings plan receiving 20% government grant (CESG), tax-deferred growth.

Canadian financial planning designation (now replaced by QAFP/CFP).

Federally-regulated locked-in retirement income account offering one-time 50% unlocking option at age 55+; funds transferred to RRSP/RRIF.

Retirement income plan holding RRSP assets; minimum withdrawals required. RRSPs convert to RRIFs by age 71.

Retirement savings with tax-deductible contributions, tax-deferred growth. Limit: 18% of prior year income to maximum ($31,560 in 2024).

Distribution representing return of original investment, not income; reduces adjusted cost base.

Net income divided by shareholders' equity; measures profitability.

Gain/loss relative to amount invested, as percentage.

Employer-sponsored pension registered with CRA; tax-deferred growth.

Nine-digit identifier for Canadian residents; required for employment, government benefits, tax filing.

RRSP where one spouse contributes using their contribution room but the other spouse owns the plan; income-splitting strategy.

Insurance replacing income (60-70%) for temporary disabilities, typically up to 15-26 weeks.

Automatic regular withdrawals from investments providing steady income.

All housing costs plus other debts divided by gross income; lenders prefer under 40-44%.

Registered account with tax-free growth and withdrawals. Contribution limit $7,000 (2024), unused room carries forward from 2009.

Rules taxing certain income of minors and some adults at highest rate to prevent income splitting (also called "Kiddie Tax").

Quebec's version of PRPP.

Total return expected on bond held to maturity, accounting for price, par value, coupon, and time remaining.