How to go about securing the best savings strategy in Canada.
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Tax-free education savings: The ABCs of RESPs + MORE May 31st
RESPs are a tax-free vehicle for your child’s education funds that also qualify for the Canada Education Savings Grant..... More »
CPP vs RRSP: Can you transfer your CPP to an RRSP? Dec 26th
I’m 40 years old. Can I transfer my accumulated CPP to an RRSP?
—Franco
I am going to cut to the chase here, Franco. You cannot transfer your Canada Pension Plan (CPP) to a registered retirement savings plan (RRSP). Some pensions can be transferred to an RRSP, and there are ways .... More »
Do RRSPs Save You Taxes in the Long Run? + MORE Jan 25th
For the first-time RRSP investor, it can be a challenge to understand how RRSPs can save you money. Contributions to your RRSP reduce your immediate tax burden, but you do pay tax on withdrawals. While it’s true that RRSPs may be more properly understood as a vehicle for tax deferment instead.... More »
How to use your credit card responsibly Jun 4th
Credit cards are a part of everyday life. They’re a convenient and safe way to pay for your purchases, and they often come with perks and benefits. Plus, when you use a credit card responsibly, you can build up your credit score, which can help you access loans, mortgages or other types of credit.... More »
What the Bank of Canada Rate Increase to 1.5% Means for Canadian Home Owners and Home Buyers Jul 19th
From personal loans to mortgages, simply put, it’s now more expensive and more difficult for Canadians to borrow money.
At the beginning of 2018, new mortgage rules raised the bar for qualification. Under federal law, all financial institutions are now required to put any new applicants under a.... More »
The procrastinator’s guide to the RRSP deadline
– moneysense.ca
When it comes to last minute RRSP planning, nothing surprises Michael Berton anymore. The Vancouver-based CFP has seen people dump cash in their accounts at the last second or invest in something unusual because they were pressed for time. He’s even seen people with 11 RRSPs, all at different financial institutions. “They literally opened an account on the last day,” he says.
While contributing at the last minute is frowned upon, there will always be people who procrastinate. The problem with waiting, though, is that people generally do dumb things or forget something crucial. So, if you haven’t made your contribution yet then consider these last minute tax tips to avoid any big mistakes.
Figure out if you need an RRSP
A lot of people panic at the last minute and open an RRSP because they think that’s what they should do. But for Canadians making less than about $40,000, investing in a tax-free savings account may make more sense.
RRSPs work best for people in higher tax brackets who can take advantage of the deduction now and, ideally, pay less tax when they withdraw…
Are Your Borrowing Habits to Blame?
– ratesupermarket.ca
It’s no secret that the bargain-basement cost of borrowing in Canada tempts consumers into taking on more debt; it’s a great time to apply for a mortgage, line of credit, and other types of variable-based loans. But that isn’t stopping most of us from racking up our credit cards – the most expensive debt out there.
Read on for the findings from our recent Debt Denial survey – and what’s potentially to come for mortgage borrowing in Canada.
INFOGRAPHIC: 27.5% of Canadians are in Credit Card Denial
When it comes to understanding our debt, over a quarter of Canadians are getting it wrong. Our Debt Denial study finds the truth about how our credit card balances stack up to the national average – and it isn’t pretty.
Check out our infographic and calculator to see if YOU are in debt denial!
Read Penelope’s Blog | 27.5% of Canadians are in Credit Card Denial
Low Oil Leads to Slower Home Sales: CREA
Sliding oil prices have finally caught up with Canada’s housing market; the latest numbers from Stats Can and the Canadian Real Estate Association find sales activity slowed this month by 3…
One of the U.S. biggest banks, Wells Fargo, has said it will cap the amount of money it lends as subprime auto loans, according to the New York Times.
EVANSVILLE, Ind. – Personal finance company Springleaf Holdings is buying Citigroup’s OneMain Financial for $4.25 billion.OneMain Financial Holdings Inc. of Baltimore provides personal loans and has more than 1,100 neighbourhood branches across 43 states. The Citigroup subsidiary, originally founded as Commercial Credit, has about 5,600 employees. It has acquired companies such as The Associates and Washington Mutual Finance over the years.”While this business didn’t fit our strategy, it serves customers who deserve and need credit,” Citi CEO Michael Corbat said in a printed statement.Citi said that it will use part of the proceeds from the sale to retire certain funding that currently supports Citi Holdings. The sale, along with retirement of the related funding, are expected to result in a net addition to earnings before income taxes of approximately $1 billion.Springleaf Holdings Inc. of Evansville, Indiana will consolidate approximately 200 branches beginning in the middle of next year…
Can Canada Afford to Double TFSAs?
– ratesupermarket.ca
With the federal budget approaching in April, Tax-Free Savings Accounts (TFSAs) are once again making news headlines. During the 2011 election, the Conservatives promised to double the TFSA contribution limit once the federal deficit was eliminated. Despite the sudden drop in the price of oil, the Tories are still expected to balance the books in time for April’s federal budget – but it is unclear whether funds are still available for TFSAs.
Much like the matter of income splitting – another key election promise the Tories have fulfilled – the issue of doubling TFSA room is polarizing. Some are in favour of it, while others claim it’s a tax break that will mostly benefit the rich.
Who Benefits Most from Doubling the TFSA Contribution Limit?
Would doubling the contribution limit only affect the wealthy? That’s the major concern of social policy think tanks like the Broadbent Institute and C.D. Howe Institute. Even Jonathan Rhys Kesselman and Finn Poschmann, the two individuals who co-authored a report back in 2001 that laid the foundations for the TFSA, can’t even agree…
