How much should I have in my RRSP? + MORE Feb 18th

For many Canadians, investing in their registered retirement savings plan (RRSP) is the primary way they save for retirement. RRSPs are an invaluable tool, allowing you to stow away funds for golden years while reducing your taxable income today. However, there is no one-size-fits-all way to use them, so it can be hard to know whether or not you’re on the right track. We enlisted the help of Ayana Forward, a Certified Financial Planner with Retirement in View, to provide insight on both determining—and meeting—your financial goals for retirement. Here’s how much you should have in your RRSP by age. But first, some background on RRSPs.
A primer on RRSPs
An RRSP is a nest-egg account that you (and your spouse or common-law partner) can contribute to long-term. Every year, you can stash a percentage of your income in your RRSP, reducing your taxable income for the year. Note: The contribution limit changes each year, so check the current limit to ensure you don’t over-contribute…

Selling your high-performing stocks or your cottage with a view can reap significant profits, and those moments are worth celebrating. But while you’re enjoying the spoils of your investments, keep in mind that you’ll eventually have to pay tax on them. In Canada, most gains on capital assets are taxed. Let’s look at strategies to avoid paying more taxes than you need to come tax time. 

What are capital gains?

A capital gain occurs when you sell an asset or investment at a higher value than its original purchase price, meaning you earn income from the sale. This applies to stocks, bonds and shares in mutual funds and exchange-traded funds (ETFs), as well as rental properties, cottages and business assets and equipment. On the other hand, when you sell an asset for less than its original purchase price, that’s called a capital loss. 

Certain types of property are not subject to the rules of capital gains. A home that has served as your principal residence is exempt from capital gains tax—as long as it has been your primary residence for all the years you’ve owned it or for all years except one…

Each week, Cut the Crap Investing founder Dale Roberts shares financial headlines and offers context for Canadian investors.

Earnings season picks up the pace: Shopify crashes

I’m looking into more earnings, starting with Shopify.

Shopify

Canadian tech darling Shopify (SHOP) stole the headlines north of the border. Shopify crashed 16% after earnings were released. 

Source: Seeking Alpha

Amazon (AMZN) leads with 41.0% market share of U.S. e-commerce sales in 2021, and SHOP comes in second at 10.3%. 

Source: Shopify earnings report 

SHOP stock fell hard after earnings, but it was mainly due to outlook and not to the realized results. Revenue of US$1.38 billion comfortably beat consensus estimates of US$1.34 billion. Non-GAAP (non-generally accepted accounting principles)income of US$1.36 per share also beat consensus estimates of US$1.31 per share.

It grew profits by 60%, revenue increased by 41%. 

It was the forward guidance from the company that brought the stock down…