Personal Savings getting you down? There are always smart ways to increase your savings.
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The holidays on a budget: How to avoid credit card debt Nov 28th
For many Canadians, managing debt is a year-round challenge. Common tips tend to be simplistic or downright insulting (we’re looking at you, “skip your daily coffee”). Staying on top of your finances gets even more difficult during the holidays, when everywhere we look there are messages urgin.... More »
Get Ready For the RRSP Rush + MORE Feb 24th
There’s just 11 days until this year’s RRSP contribution deadline – will you be scrambling to make the most of your return?
While RRSPs can be used a multitude of ways, and enjoy a variety of tax benefits, it’s not always clear whether they’re the right choice for your finances. Check.... 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 »
RRSP? TFSA? RESP? What These Acronyms For Saving Plans Mean + MORE Dec 14th
Saving money can be tough considering Canadian consumer debt is worth around $1.702 trillion, but for those willing to learn, Jeffrey Schwartz has a few pointers.
For starters, the financial expert says Canadians should get to know what savings plans are at their disposal and what works best for t.... More »
2023 tax credits, due dates and when you can file: Your 2023 income tax return guide + MORE Mar 19th
You’ll want to bookmark the MoneySense guide for 2023 personal income taxes. We will be updating it frequently, as information becomes available and deadlines approach. Plus, we get answers from the experts you won’t find anywhere else, thanks to our Ask MoneySense and Ask A Planner columns.&nbs.... More »
Tips for paying off your Home Buyer’s Plan
– moneysense.ca
(Image courtesy of Danilo Rizzuti / FreeDigitalPhotos.net)Q: I have maximized my RRSP contributions for 2013, including $1,300 paid back to my Home Buyers’ Plan (now at $13,000). I have about $12,000 in RRSP contributions to carry forward to next year. Can I apply it directly to my HBP all at once?
— Kelly Leach, Kelowna, B.C.
A: You can eat an entire chocolate cake in one sitting, but you might not want to. The same goes for using that RRSP carry-forward to eliminate what you owe under the Home Buyers’ Plan. Adrian Mastracci, a portfolio manager with KCM Wealth Management in Vancouver, says “there may be more benefit in repaying the minimum HBP and deducting the rest as a normal RRSP contribution for 2014.” The reason is that the RRSP contribution will defer income tax into the future, and give you a higher tax refund in the present. An HBP repayment doesn’t do either because you received those benefits already, when you make the RRSP contribution the first time around. In future years, if you have retired all other consumer debt, are making good progress on your mortgage, maxing out your RRSP, and still have cash on hand, you could retire your HBP early and celebrate your accomplishment with the aforementioned cake…
Ottawa moves ahead with plan to legislate shared-risk pensions
– moneysense.ca
Ottawa is proceeding with its plan to introduce shared risk pension plans in the federally regulated sphere and will likely introduce implementing legislation early in 2015, says minister of state for finance, Kevin Sorenson.
The federal government completed two months of consultation on the proposal Wednesday and Sorenson said it would likely begin drafting a bill in the fall.
The government has been under pressure from labour groups and some provinces to enhance the Canada Pension Plan, but Finance Minister Joe Oliver said as recently as last week that Ottawa doesn’t favour the move even if Ontario opts to go it alone.
Instead, the government has backed an incremental approach, including pooled pension plans, tax free savings accounts and more recently the shared risk proposal, also referred to as target benefit plans.
Sorenson said in an interview that the target proposal is needed because many defined benefit plans have run into funding difficulties since the economic crisis and many Canadians, especially new hires, are no longer being offered defined benefits…
The federal government completed two months of consultation on the proposal Wednesday and Sorenson said it would likely begin drafting a bill in the fall.
The government has been under pressure from labour groups and some provinces to enhance the Canada Pension Plan, but Finance Minister Joe Oliver said as recently as last week that Ottawa doesn’t favour the move even if Ontario opts to go it alone.
Instead, the government has backed an incremental approach, including pooled pension plans, tax free savings accounts and more recently the shared risk proposal, also referred to as target benefit plans.
Sorenson said in an interview that the target proposal is needed because many defined benefit plans have run into funding difficulties since the economic crisis and many Canadians, especially new hires, are no longer being offered defined benefits…
