How to go about securing the best savings strategy in Canada.
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RESP vs RRSP and TFSA: What’s the best option for education savings? + MORE Aug 28th
Welcome to Education Money, a new column that covers the questions and concerns parents and investors have about funding their child’s education. Andrew Lo, CEO of Embark, shares his thoughts and insights on how to make the most of RESPs. To kick off the column, he explains the different options C.... More »
Personal Income Tax Guide: The deadline for filing your 2021 return, tax brackets and more + MORE Dec 12th
The year 2021 has been a year about money, from the latest crypto to inflation to housing prices to taxes. While money trends can go up and down—or up and up for certain matters—taxes can be more predictable, if you’re prepared. This year’s MoneySense income tax guide includes the things you.... More »
OAS payment dates in 2025, and more to know about Old Age Security + MORE Apr 2nd
If you’re approaching or planning for retirement, you may have questions about Old Age Security (OAS) benefits, like: Do I need to apply for OAS? How much will I receive in OAS? When do OAS payments go out? We cover these questions and more below. But first, here’s a quick overview of how OAS wo.... More »
How to Improve Your Employees’ Financial Wellness + MORE Apr 9th
In today’s challenging economy, Canadians seek ways to stretch their hard-earned dollars and minimize financial strain. But learning how to make the most of every paycheque isn’t always clear or easy, which can cause added stress. Employers can help empower their employees to achieve financial w.... More »
How to plan for retirement when you have no pension + MORE Sep 10th
In years past retirement planning was relatively easy. Fifty years ago, more than half of working Canadians, and an even higher proportion of men, could fall back on a corporate or union pension plan as their main source of income in retirement.
That’s no longer the case. Just 38% of paid work.... More »
Free Yourself of Student Loan Debt with These Top Debt Relief Options
– ratesupermarket.ca
According to the Canadian Federation of Students, the average college graduate carries approximately $27,000 in student loan debt. Today, nearly 2 million graduates have student loans that total more than $20 million. Though many individuals go into this type of debt in the hopes that it will pay off, many find that they can spend a decade making payments and barely put a dent in their debt. In fact, one in six insolvencies in Canada involves a consumer who has student debt. Student loan borrowers who file for insolvency have an average student loan balance of $15,000 remaining. If you’re like many college graduates in Canada and your student debt has become oppressive, it may be time to explore some of the repayment options available to you through the nation’s various student loan agencies.
Repayment Assistance Plan
You may qualify for the Repayment Assistance Plan if you live in Canada, graduated from college at least six months ago and are up-to-date on your loan payments. If accepted into RAP, the Government of Canada may reduce your monthly student loan payments so that they do not exceed 20% of your income…
What types of Tax-Free Savings Accounts (TFSAs) exist?
– moneysense.ca
A Tax-Free Savings Account (TFSA) is a fantastic way to earn money on your savings, without having to pay tax on those earnings. Registered by the federal government, TFSAs are available to Canadians aged 18 and older. Unlike a Registered Retirement Savings Plan (RRSP), you cannot deduct contributions to your TFSA from your income tax, so you will have to pay income tax on that initial money. But as long as you adhere to TFSA guidelines, you won’t pay taxes on any earnings made within the TFSA, not even when you withdraw it. Plus, you can withdraw as much as you want at any time.
There’s a specified limit to how much money you can put inside a TFSA. For 2020, the annual TFSA contribution limit is $6,000, and there is a lifetime maximum of $69,500 for those who were 18 or older as of 2009. The good part is that any unused contribution space and any amount that you withdraw from your TFSA becomes available to you as contribution room in the next calendar year.
Even though the word ‘‘savings” is in the name, it’s actually better to think of TFSAs as investment accounts, rather than simply a savings account…
There’s a specified limit to how much money you can put inside a TFSA. For 2020, the annual TFSA contribution limit is $6,000, and there is a lifetime maximum of $69,500 for those who were 18 or older as of 2009. The good part is that any unused contribution space and any amount that you withdraw from your TFSA becomes available to you as contribution room in the next calendar year.
Even though the word ‘‘savings” is in the name, it’s actually better to think of TFSAs as investment accounts, rather than simply a savings account…
