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Should retirees speculate? + MORE Nov 16th
All investors need to know the difference between investing and speculation—often summed up as what you do with “serious money” versus “fun money”—and that’s doubly true for those at or near retirement. While investing is about building wealth you can count on, speculating typically me.... More »
Why GICs are a good addition to an RRSP or a TFSA + MORE Feb 8th
It’s tax time again, which means Canadians may be thinking about tax-smart ways to invest to reduce their tax burden next year. Chances are, you’ve seen and heard more about guaranteed investment certificates (GICs) in recent months than ever before, and there are concrete reasons why. Read on t.... More »
Tax write-offs that Canadians often get wrong Apr 18th
I come across frequent questions from taxpayers about expenses they think they can claim as a tax deduction or credit. Often, they cannot be claimed, or there are strict criteria that apply.
Safety deposit box
Back in the olden days, investors sometimes kept stock certificates in their safety .... More »
Marriage or mortgage: Which is the better investment? Mar 30th
Weddings can be expensive, but so can many of the things that come after a wedding—like a home purchase, starting a family and saving for retirement. And so money is an important relationship issue even before a couple ties the knot.
Both weddings and home purchases can both cause people to thin.... More »
TFSA vs RRSP: How to decide between the two + MORE Mar 30th
One of the most common questions out there is whether to invest in a registered retirement savings plan (RRSP) or a tax-free savings account (TFSA). Both will help you save, and save on taxes, but each works in a different way. Understanding how these accounts work will help you decide which is best.... More »
When to prioritize debt repayment over saving
– moneysense.ca
In an earlier story, we introduced you to Lindsay Tithecott, a 29-year-old who is trying to pay down debt, build up savings and buy a larger condo. To help her get her finances in tip top shape, we gave her a series of financial challenges, including a rethink of her budget-busting fitness classes. This challenge involves budget basics.
Calculating how much you can afford to save and invest
We asked Lindsay to redo her budget, starting with annual disposable income.
To determine this, she took pay stubs from both her full-time job and her part-time job, and did the following:
1. Calculated what she earns gross annually from both jobs, then deduct income taxes, EI, CPP, Disability insurance payments, etc. from that amount to get her total net income.
2. Subtracted the $2,880 RRSP contribution that her employer matches dollar for dollar at work from her net income calculated above to determine how much is left.
What Lindsay learned, in her own words
I’m so glad I did this challenge and the timing was great for me…
Calculating how much you can afford to save and invest
We asked Lindsay to redo her budget, starting with annual disposable income.
To determine this, she took pay stubs from both her full-time job and her part-time job, and did the following:
1. Calculated what she earns gross annually from both jobs, then deduct income taxes, EI, CPP, Disability insurance payments, etc. from that amount to get her total net income.
2. Subtracted the $2,880 RRSP contribution that her employer matches dollar for dollar at work from her net income calculated above to determine how much is left.
What Lindsay learned, in her own words
I’m so glad I did this challenge and the timing was great for me…
