Slashing debt is Canadians’ number one priority in 2018 + MORE Dec 30th

When it comes to saving through registered savings plans, most of us make two very costly mistakes: we tend to contribute too little and too late in the year to get the full benefit of tax-free compounding. It is costing you money —and we’ll prove it.
Sometimes the reason we contribute at the last possible moment is that we have other, more pressing financial priorities like paying down the mortgage or investing in a family business. But more often than not, it’s because we’re doing other spending stuff, like leasing a new car, doing a new home reno, or taking that annual vacation with family.
Registered Retirement Savings Plans (RRSPs) and Tax-Free Savings Accounts (TFSAs) are two of the most common lost opportunities. In a real sense, the first sin (investing too little) is more easily forgiven; if you don’t have the money to max out on your contribution room, there might not be anything you can do about it. But the second sin (investing at the last minute) is worse; if you can find the money, you should really find a way to put the deposit at the top of your to-do list for the year…

TORONTO — Canadians are keen to lighten their debt loads in 2018, according to an annual opinion survey conducted for CIBC.
The Toronto-based bank says debt reduction or elimination was the top priority for 25 per cent of the poll respondents.
Paying bills or just getting by were the top goals for about 15 per cent of respondents.
By comparison, 13 per cent said their top priority was growing wealth or investments.
Lower on the list of financial goals were saving for a vacation (eight per cent), retirement (seven per cent), or for a house or renovation (six per cent).
READ: 10 ways to save more and pay down your debt
The online survey was conducted Dec. 11 and 12 by Angus Reid Forum, using a statistically weighted sample of 1,524 adults in Canada.
The high level of Canadian household debt has been cited by the Bank of Canada for years as one of its top concerns.
But the level of household debt continues to rise, hitting 171.1 per cent of disposable income in the third quarter…

Because the biggest single expense in retirement is usually tax, high-income seniors should strive to use Tax-free Savings Accounts (TFSA) to minimize the tax bite in their later years.
The key is to maximize both contributions and growth no matter how old you are, which means holding proper growth investments (equities) instead of fixed-income instruments that pay a pittance.
“The TFSA is a mis-named vehicle,” says T.E. Wealth’s senior vice president Warren Baldwin, who prefers the term “Tax-free Portfolio Account” or TFPA. Still, it’s fortunate that despite the misnomer, the TFSA can act as a TFPA.
Because the TFSA was introduced only in 2009, most seniors have ten times as much money in RRSPs and RRIFs than TFSAs, says Sandy Aitken, CEO of M-Link Mortgage Corp, developer of TFSA Maximizer. Over 15 years, his product aims to reverse that ratio.
The main issue is when RRSPs convert to RRIFs after age 71 (if not annuitized) and the legislated annual minimum withdrawals that require them to pay income tax at high marginal tax rates…