How to go about securing the best savings strategy in Canada.
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FHSA withdrawal rules and rental property advice for a first-time home buyer + MORE Oct 16th
Ask MoneySense
Would it be beneficial to open a first-time home buyer’s savings account if I was planning on buying a property soon, say, in 2023 or 2024?
If I purchase a house and live in the basement but rent out the main floor, would that still be taxed as capital gains?
Are there any inv.... More »
The Best No-Fee Rewards Credit Cards For 2019 + MORE May 17th
Credit card rewards come in many forms. From points to statement credits to cold-hard cash, a good rewards card maximizes on your everyday purchases and ultimately helps you save.
Reward credit cards generally offer different amounts of rebates for particular spending categories (gas, grocery, phar.... More »
RRSP vs TFSA: Where to store your retirement savings + MORE Feb 15th
—In partnership with Scotiabank—
The post RRSP vs TFSA: Where to store your retirement savings appeared first on MoneySense..... More »
Canada’s Best Credit Cards 2019 + MORE Mar 1st
It goes without saying that finding the right credit card could save you hundreds if not thousands of dollars a year. Whether you’re looking for lower fees, higher net reward points or simply valuable perks like travel medical insurance or rental car savings, every dollar counts. If you use your c.... More »
Which ETFs are the most tax-efficient for Canadian investors? + MORE Sep 10th
One difference I’ve noticed when speaking with Canadian and U.S. investors is how much more focused the latter tend to be on taxes.
Chalk that up as a win for Canadians. Between the tax-free savings account (TFSA), registered retirement savings plan (RRSP), and first home savings account (FHSA).... More »
4 things to get right when tapping RESP savings
– moneysense.ca
When your kids are on the cusp of starting university and you’re eyeing a hefty tuition bill, you are no doubt thankful for a sizeable balance in your Registered Education Savings Plan (RESP). Sure, it’s a sweet program—but now you have to master the complexities of taking the money out.
Here are four key things you should do with your kids’ RESP when they approach university or college age: Stop contributions when it makes sense; adjust your asset allocation; structure withdrawals to minimize tax; and deplete your RESP at the right time.
By now you probably know the RESP basics. You can earn up to 20% in “core” grants (termed “Canada Education Savings Grants” or CESGs) on your contributions to a maximum lifetime CESG grant total of $7,200 per child. (There are additional grants for low-income families and in certain provinces.) The grants, contributions and investment income are all tax-sheltered until you take the money out.
If you withdraw the money while your kids (the “beneficiaries”) are in post-secondary education, then “grants” and “income” are taxable in your kids’ hands, which generally means little or no tax if you do it right…
Here are four key things you should do with your kids’ RESP when they approach university or college age: Stop contributions when it makes sense; adjust your asset allocation; structure withdrawals to minimize tax; and deplete your RESP at the right time.
By now you probably know the RESP basics. You can earn up to 20% in “core” grants (termed “Canada Education Savings Grants” or CESGs) on your contributions to a maximum lifetime CESG grant total of $7,200 per child. (There are additional grants for low-income families and in certain provinces.) The grants, contributions and investment income are all tax-sheltered until you take the money out.
If you withdraw the money while your kids (the “beneficiaries”) are in post-secondary education, then “grants” and “income” are taxable in your kids’ hands, which generally means little or no tax if you do it right…
Risk virtual money, win real prizes
– moneysense.ca
This week my son Luca, 22, was doing some investing research for the small sum he has in his Tax-Free Savings Account (TFSA) and came across an online stock contest called Horizons ETFs Biggest Winner Trading Competition. He immediately signed up, happy to learn about investing while perhaps winning some prize money in the process.
Actually, this is one of two stock picking contests that Luca entered this week. The second is the Kitco/Stockpools Stockpicking Challenge.
Horizon’s contest
The games themselves are fairly simple. For the Horizons ETF game you are given $100,000 of “fantasy funds” to start trading your virtual trading account. There are a few key rules: You can only trade ETFs listed on the Toronto Stock Exchange; you must hold four ETFs and you can only invest up to 25% of your portfolio in any one ETF. But make no mistake—there are several volatile sector funds available on their pre-chosen list as well as hedged ETFs that can add a lot of volatility and upside to your final tally…
Actually, this is one of two stock picking contests that Luca entered this week. The second is the Kitco/Stockpools Stockpicking Challenge.
Horizon’s contest
The games themselves are fairly simple. For the Horizons ETF game you are given $100,000 of “fantasy funds” to start trading your virtual trading account. There are a few key rules: You can only trade ETFs listed on the Toronto Stock Exchange; you must hold four ETFs and you can only invest up to 25% of your portfolio in any one ETF. But make no mistake—there are several volatile sector funds available on their pre-chosen list as well as hedged ETFs that can add a lot of volatility and upside to your final tally…
