Watch: 4 things to consider before putting your money in a TFSA or RRSP Sep 28th
Financial paralysis and how to get moving again + MORE Feb 28th
U.S. withholding tax in an RRSP for Canadians + MORE Aug 3rd
How to start saving for retirement at 45 + MORE Mar 14th
What is the CPP Survivor’s Pension? How can Canadians claim this benefit? + MORE Feb 15th
Making sense of the markets this week: April 17
– moneysense.ca
If a TFSA and an RRSP had a child: The new FHSA
As part of the 2022 budget, the government unveiled its new tax-free first home savings account (FFHSA, but I prefer FHSA as it’s less of a mouthful). And it will be a great way for first-time homebuyers to save up part of their down payment. In a nutshell, here’s what to know about the FHSA:
It allows Canadians to save and invest $8,000 per year, up to a lifetime maximum of $40,000.If you miss contributing in a year, you can’t “make up for it” by carrying forward contribution room in the years to come like you could with a tax-free savings account (TFSA) or a registered retirement savings plan (RRSP).It blends the tax refund benefits that we love with the RRSP, along with the no-strings-attached non-taxation of withdrawals that the TFSA is famous for.Investment income from interest, dividends or capital gains are yours to keep tax-free…
Can I withdraw from RRSPs to pay bills?
– moneysense.ca
Withdrawing RRSPs when you’re not retired
Ahh, the unexpected bills.
Anonymous, I’ll give you my initial thoughts first, and then I’ll review the cons of withdrawing from your registered retirement savings plan (RRSP) to pay off unexpected bills.
Assuming you’ve incurred the debt yourself and you’re not desperate—and I mean really desperate—don’t pay your bills with an RRSP withdrawal.
You acquired the debt on your own, so I recommend figuring out a way to pay it off without cashing in investments or consolidating loans.
When unexpected bills arrive, cash flow issues are normally the underlying culprit; either not enough income or too much spending.
What can you do to increase your income or reduce your spending so you can pay off your bills?
Withdrawing from your RRSP may seem like the easy way out. Paying off a debt by cashing in an RRSP or consolidating loans is just a temporary fix, and it starts a cycle…
