How to go about securing the best savings strategy in Canada.
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‘Tis the Season to Spring Clean Your Wallet + MORE Mar 8th
Ready to lose an hour of sleep?
On Sunday, March 12th at 2 a.m., most Canadians set their clocks back one hour and spring forward.
We can see the light at the end of the tunnel we call winter. So as we start fresh and give into the annual “spring cleaning” tradition, why not give financial spri.... More »
4 Things You Should Do Now So You Can Save on Taxes in the New Year Dec 14th
With all the hustle and bustle that’s synonymous with this time of year, it’s important to also take a closer look at your personal finances before heading into 2019 – and we’re not talking about holiday budgets. Yes, most Canadians are busy with Christmas shopping and festivities, but .... More »
In Your Corner: My house is my retirement plan. Am I doomed? + MORE Aug 29th
Owning a home is a great investment but we all should have other investments socked away for retirement — ideally inside a Registered Retirement Savings Plan (RRSP), says this week’s expert..... More »
TFSA vs RRSP: How to decide between the two + MORE Jul 4th
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 different ways. Understanding these investments will help you know when to use one or the.... More »
The ins and outs of tax and estate planning for a RRIF + MORE Apr 5th
Q: I’m 81, single, female, with around $265,000 in a RRIF (invested in two different financial institutions, both mutual funds). My withdrawal is about $12,000 a year.
How can I minimize tax payable (by my beneficiaries) at death?
— Lydia
A: The tax savings and deferral from contributing t.... More »
End-of-year tax tips to maximize savings
– moneysense.ca
With less than two months left before the calendar turns over, Canadians run the risk of paying more taxes than necessary if they wait until April to review their tax savings strategies, says Jamie Golombek, managing director, Tax & Estate Planning, CIBC Wealth Advisory Services.
“It’s important to act now before the holiday season begins if you hope to have enough time to take full advantage of tax-savings strategies for 2015 and beyond,” says Golombek.
Below, he outlines various tax-planning strategies.
Consider the timing of income and expenses
The Liberals have stated their first priority will be to cut the federal tax rate from 22% to 20.5% for the middle income-tax bracket, which affects Canadians with taxable annual income between about $45,000 and $90,000. The party also promised to increase the federal tax rate from 29% to 33% for individuals earning more than $200,000 annually.
The timing of these tax rate changes is still uncertain, but many believe they will be effective in 2016…
“It’s important to act now before the holiday season begins if you hope to have enough time to take full advantage of tax-savings strategies for 2015 and beyond,” says Golombek.
Below, he outlines various tax-planning strategies.
Consider the timing of income and expenses
The Liberals have stated their first priority will be to cut the federal tax rate from 22% to 20.5% for the middle income-tax bracket, which affects Canadians with taxable annual income between about $45,000 and $90,000. The party also promised to increase the federal tax rate from 29% to 33% for individuals earning more than $200,000 annually.
The timing of these tax rate changes is still uncertain, but many believe they will be effective in 2016…
Debt repayment mistakes you’re probably making
– moneysense.ca
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The single biggest mistake when trying to control and pay down debt is failing to eliminate the highest-interest debt first. You have to prioritize by two factors: the rate of interest being paid and whether or not it’s tax deductible. Credit-card debt for consumption purposes is the most pernicious because a) the interest rates are onerous at near 20% a year; and b) There’s no way to deduct the expense of this interest from your taxes.
Given this, the obvious conclusion is to pay off high-interest, non-deductible credit-card debt ahead of all other debts— ahead of student loans and ahead of mortgage debt, both of which usually involve much lower rates of interest.
The second biggest mistake is paying off non-tax-deductible debt ahead of valid tax-deductible debt. You may ask what debts ARE tax deductible? Well, if you are a business owner you may have a corporate credit card you use exclusively for valid business expenses that should therefore be deductible from business income: valid auto expenses, office supplies and equipment, various professional services and the like…
5 steps to help you prepare for buying a house
– moneysense.ca
This November will be the 5th anniversary of Financial Literacy Month (FLM). It’s a month-long awareness campaign to promote the importance of making informed financial decisions and developing healthy financial habits—decisions and habits that can make or break your desire to become a homeowner. So, before you even start your Multiple Listing Service search, you’ll need to get prepared. To help you, here’s a five step process that can support your decision in buying a house.
Step 1: Start saving
It seems obvious but you really have to start somewhere and the best place to start when you plan on purchasing such a large asset is by saving your own money. And saving up for a down payment doesn’t mean cramming cash under your mattress.
You can use RRSP money you’ve already saved by utilizing the federal Home Buyers’ Plan. (For information on how this works, go here.) You can also hit up family for a loan or cash gift or you can develop a work strategy that would help you earn some extra income and boost your savings…
Step 1: Start saving
It seems obvious but you really have to start somewhere and the best place to start when you plan on purchasing such a large asset is by saving your own money. And saving up for a down payment doesn’t mean cramming cash under your mattress.
You can use RRSP money you’ve already saved by utilizing the federal Home Buyers’ Plan. (For information on how this works, go here.) You can also hit up family for a loan or cash gift or you can develop a work strategy that would help you earn some extra income and boost your savings…
How to get out of debt
– moneysense.ca
It’s no secret that debt is becoming an ever-growing problem in Canada.
In September, Statistics Canada announced that the ratio of household debt to disposable income in households rose to 164.6% in the second quarter of this year. The stats may seem dire but with some careful planning and patience, debt is a hurdle that can be overcome.
Credit cards are usually the culprits of massive debt pile-ups, while other consumer loans and mortgages also contribute to Canadians’ debt-loads. It’s easy to fall behind on monthly payments associated with unsecured debt and fall prey to high interest rates taking the reins.
So, how do you tackle debt?
Use your funds wisely
First, determine how much you can actually contribute towards paying off what you owe in a month, says Debbie Gillis, of K3C Credit Counselling in Kingston, Ont. Prepare a budget to determine how much you need to spend each week on basics and how much you can spare for making debt payments.
“I don’t recommend you use all of [your extra money] to pay down your debt…
In September, Statistics Canada announced that the ratio of household debt to disposable income in households rose to 164.6% in the second quarter of this year. The stats may seem dire but with some careful planning and patience, debt is a hurdle that can be overcome.
Credit cards are usually the culprits of massive debt pile-ups, while other consumer loans and mortgages also contribute to Canadians’ debt-loads. It’s easy to fall behind on monthly payments associated with unsecured debt and fall prey to high interest rates taking the reins.
So, how do you tackle debt?
Use your funds wisely
First, determine how much you can actually contribute towards paying off what you owe in a month, says Debbie Gillis, of K3C Credit Counselling in Kingston, Ont. Prepare a budget to determine how much you need to spend each week on basics and how much you can spare for making debt payments.
“I don’t recommend you use all of [your extra money] to pay down your debt…
