A non-registered investment account is essentially an account with no tax benefit. You will therefore have to pay tax on all the income generated by the investments in this account.
However, having a non-registered investment account in your portfolio can provide you with several advantages:
- It is more flexible since there is no limit on how much you can invest in it or withdraw from it, or when you can do so.
- You can open this type of account at the age of 18 and keep it for the rest of your life, since it is not subject to any age limit, like an RRSP for example.
- Due to the tax impact, it is preferable to hold certain types of investments in this account: discuss this aspect with your advisor.