There are plenty of bank savings account options in Canada! Stay on top of the best plans right here.
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2022 Income Tax Guide for Canadians: Deadlines, tax tips and more + MORE Feb 13th
It’s been quite a year for numbers, hasn’t it? From rising interest rates to steep stock market drops, finances have been headline news throughout 2022. It’s almost enough to make you forget about tax season. But with the tax deadline approaching, you have a few reminders (see the dates below).... More »
Stock news for investors: Goeasy shares plunge nearly 60% after lender suspends dividend + MORE Mar 18th
Here’s a round-up of news for Canadian investors this week.
Goeasy
Algoma Steel
Transat
RBC
MDA Space
Empire
Featured RRSP Accounts
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EQ Bank
Build your retirem.... More »
When will I receive my Old Age Security benefits? OAS payment dates for 2026 + MORE May 27th
If you’re close to retirement or are a pensioner trying to manage your monthly budget, it helps to know when your Old Age Security (OAS) benefits are paid out. The government publishes the payment dates and provides a wealth of information about the program, but you may still have questions. We’.... More »
Best FHSAs in Canada: Where to get the new first home savings account Jun 5th
First home savings account (FHSA) highlights
The FHSA is a type of registered account that allows you to contribute up to $8,000 annually, up to a lifetime limit of $40,000, to save for the purchase of your first home.FHSAs became available on April 1, 2023. However, availability is currently limite.... More »
This millennial has $100,000 in savings and wants to leave Toronto to buy a cheaper house. With help from parents, is it possible? + MORE Jun 12th
“After looking at all these properties, my boyfriend and I realize that we have to be realistic and find a place further out,” Vanessa said..... More »
The great escape
– moneysense.ca
You’ve probably thought about the best way to get money into your RRSP, but have you thought about the best way to get your money out? If you haven’t pondered this issue, you should. Otherwise, you could run headfirst into a nasty tax bill.
The people who get swiped the hardest are diligent savers. They’re so successful at preparing for retirement that they don’t need to tap their RRSPs the moment they hit 65. They just let their money sit there. Then they’re surprised to discover that when you turn 71, the government forces you to start withdrawing money from your RRSP, whether you want to or not.
What really stings is that you have to pay taxes on the money you withdraw. If you have a seven-figure RRSP, or if your total income is high because of other investments, you could lose more than 40% of your hard-earned RRSP savings to the taxman. Nothing incenses a 71-year-old more.
The good news is that you can avoid this problem by implementing an RRSP “meltdown strategy” long before you hit your 70s…
The people who get swiped the hardest are diligent savers. They’re so successful at preparing for retirement that they don’t need to tap their RRSPs the moment they hit 65. They just let their money sit there. Then they’re surprised to discover that when you turn 71, the government forces you to start withdrawing money from your RRSP, whether you want to or not.
What really stings is that you have to pay taxes on the money you withdraw. If you have a seven-figure RRSP, or if your total income is high because of other investments, you could lose more than 40% of your hard-earned RRSP savings to the taxman. Nothing incenses a 71-year-old more.
The good news is that you can avoid this problem by implementing an RRSP “meltdown strategy” long before you hit your 70s…
What to consider if you still have RRSP contribution room
– moneysense.ca
Registered retirement savings plans (RRSPs) have been around since 1957, and each February is commonly referred to as “RRSP season.” The banks and financial media used to make a bigger deal about RRSPs in the new year, but ever since Tax-Free Savings Accounts (TFSAs) were introduced in 2009, RRSP season has seemed a bit watered down. That does not mean RRSPs are not good tax and investment options, it just reflects the fact that Canadians now have alternatives.
Maybe you’ve run some preliminary numbers on your 2020 tax return software, and discovered that you owe the CRA; or perhaps life simply got in the way of your organizing a contribution earlier (and if that’s the case, here are some tips on making last-minute RRSP contributions). Whatever the reason, if you are planning to make an RRSP contribution before the deadline, here’s a quick-reference roundup of key facts and myths to guide you.
RRSP facts
RRSP deadline for the 2020 tax year: March 1, 2021.
Maximum RRSP contribution for 2020: $27,230 (requires $151,278 of earned income in 2019 and no pension adjustment), plus any accumulated RRSP room the contributor has from past years…
Maybe you’ve run some preliminary numbers on your 2020 tax return software, and discovered that you owe the CRA; or perhaps life simply got in the way of your organizing a contribution earlier (and if that’s the case, here are some tips on making last-minute RRSP contributions). Whatever the reason, if you are planning to make an RRSP contribution before the deadline, here’s a quick-reference roundup of key facts and myths to guide you.
RRSP facts
RRSP deadline for the 2020 tax year: March 1, 2021.
Maximum RRSP contribution for 2020: $27,230 (requires $151,278 of earned income in 2019 and no pension adjustment), plus any accumulated RRSP room the contributor has from past years…
The best TFSAs in Canada for 2021
– moneysense.ca
A tax-free savings account, known better as a TFSA, is a savings vehicle available to Canadians aged 18 and up who have a valid social insurance number (SIN). It was launched by the federal government in 2009 as a way to encourage Canadians to save and invest.
As the name suggests, TFSAs offer a tax break on contributions—meaning that, unlike with a regular savings account or non-registered investment account, what you earn inside your TFSA isn’t taxed, even when you make a withdrawal. TFSAs are flexible, too, allowing you to hold cash, guaranteed investment certificates (GICs), stocks, bonds, exchange-traded funds (ETFs) or mutual funds, so you can tailor your account to different financial strategies and goals. The TFSA contribution limit for 2021 is $6,000, but keep in mind that if you qualified to make a contribution in 2020, but didn’t that contribution room is still available to you. For those who turned 18 in the year 2009 or prior, the lifetime contribution limit is $75,500…
As the name suggests, TFSAs offer a tax break on contributions—meaning that, unlike with a regular savings account or non-registered investment account, what you earn inside your TFSA isn’t taxed, even when you make a withdrawal. TFSAs are flexible, too, allowing you to hold cash, guaranteed investment certificates (GICs), stocks, bonds, exchange-traded funds (ETFs) or mutual funds, so you can tailor your account to different financial strategies and goals. The TFSA contribution limit for 2021 is $6,000, but keep in mind that if you qualified to make a contribution in 2020, but didn’t that contribution room is still available to you. For those who turned 18 in the year 2009 or prior, the lifetime contribution limit is $75,500…
How to maximize your last-minute RRSP contribution
– moneysense.ca
Mark your calendars: the deadline for Registered Retirement Savings Plan (RRSP) contributions for the 2020 tax year is March 1, 2021. But before you rush to deposit your money in a GIC or high-interest RRSP savings account at a local bank and call it a win, you should know there are other options that are just as simple and convenient—and better for your bottom line. Here’s how you can get the most out of your retirement savings all year long.
Get more than a tax deduction
Sure, it’s great that you can deduct allowable RRSP contributions (up to 18% of your previous year’s gross earnings) from this year’s taxable income—which will fatten up your tax refund—but that’s just the beginning. You also want your hard-earned savings to grow over time and compound into a nice retirement nest egg. Unfortunately, the amount of interest you can earn on a GIC is quite low, sometimes even lower than the rate of inflation. So, by the time you’re ready to spend those funds, they won’t buy you as much as they could today…
Get more than a tax deduction
Sure, it’s great that you can deduct allowable RRSP contributions (up to 18% of your previous year’s gross earnings) from this year’s taxable income—which will fatten up your tax refund—but that’s just the beginning. You also want your hard-earned savings to grow over time and compound into a nice retirement nest egg. Unfortunately, the amount of interest you can earn on a GIC is quite low, sometimes even lower than the rate of inflation. So, by the time you’re ready to spend those funds, they won’t buy you as much as they could today…
