The following is a summary of some of the most frequently asked questions. However, prospective investors should refer to the Offering Memorandum for complete details of the Offering prior to making any investment decision.
What is a Dividend Reinvestment Plan (D.R.I.P.)?
Dividend Reinvestment Plan is a plan offered by a corporation that allows investors to reinvest their cash dividends by purchasing additional shares or fractional shares on the dividend payment date. Then the next time the dividend is issued you have more shares, so your dividend is higher, and you reinvest more, thus gaining more shares. This is called compounding and it is an excellent way to increase the value of your investment.
If you purchased 1,000 shares of a stock for $10 per share with a total investment cost of $10,000; your stock started with an annual yield of 8% yield payable monthly and you plan to hold this investment for 1 year and reinvest the dividends.
You started with $10,000.00 and will end up with $10830.00 for a total gain of 8.30%. This was over 1 year so that makes your average annual gain 8.30%.
What is the role of Olympia Trust?
Their role is to act as an unbiased administrator but they do not sell or promote any investment offerings. They assist investors by holding their funds and securities in trust, processing investment transactions as instructed, issuing tax documentation, record keeping and much more.
How much does it cost to open an RRSP or TFSA account with Olympia Trust?
Annual Administration Fee is $150.00. The Annual Administration fee is charged immediately upon opening an account and is prorated to half price for accounts opened August 1st or later each year. The full annual fee will then be charged on January 1st of each year thereafter. All fees are subject to applicable taxes.
Please click here for more details: https://rsp.olympiatrust.com/fee-schedule.html
What is the TFSA contribution limit since inception?
Tax Free Saving Account (TFSA) was introduced in 2009. If you were above 18 years of age, resident of Canada with a valid Social Insurance Number, your total contribution room since inception would be $63,500. There is no deadline for contributions to a TFSA, as the unused contribution room is carried forward into the next year.
The history of annual limits for each year is shown in this table:
|Years||TFSA Annual Limit||Cumulative Total|
For additional information on TFSA, you may visit CRA site: https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/tax-free-savings-account.html