Making sense of the markets this week: August 28 + MORE Aug 31st

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 retirement planning

Why GICs are a good addition to an RRSP or a TFSA + MORE Feb 8th

It’s tax time again, which means Canadians may be thinking about tax-smart ways to invest to reduce their tax burden next year. Chances are, you’ve seen and heard more about guaranteed investment certificates (GICs) in recent months than ever before, and there are concrete reasons why. Read on t.... More »

Canada’s income tax brackets for 2023, plus the maximum tax you’ll pay based on income + MORE Dec 7th

Taxes are an inescapable fact of life in Canada. Despite this, many of us don’t think too hard about the specific federal and provincial tax brackets that govern our taxable income. Nonetheless, understanding what bracket we fall into is key to accurately estimating the amount of tax we owe on our.... More »

The best ETFs for retirement income + MORE Aug 24th

While exchange-traded funds (ETFs) are appropriate for investors of all ages and life stages, they make particular sense for retirees and those close to retiring. Things like quick and easy broad diversification of asset classes and geographic exposure at a reasonable price are especially relevant w.... More »
 registered retirement savings plan

How to save (and invest) your first $100,000 + MORE Mar 28th

A popular milestone goal for young adults just starting out is to save $100,000 cash. YouTube and TikTok are buzzing with videos on this very topic, and it makes sense—$100,000 is enough to give you financial breathing room and life-changing options, like making a down payment on a condo or house,.... More »

Where should working retirees put extra income: A TFSA or an RRSP? Jan 11th

Ask MoneySense I will be receiving CPP and OAS as of June 2024. I intend on working one more year until I reach 66. My question is: Should I put all my CPP money into an RRSP to shelter it from tax? Or should I pay the tax on it and invest in a tax-free savings account? –Gary Where to put r.... More »
Bitcoin believers beware: the crypto investment is far too risky for most portfoliosWith retirement saving on the line, cryptocurrency is still too speculative for your average investor due to its underlying lack of fundamental values

Continue Reading On thestar.com »

During my working life, I transferred non-registered investment shares through a spousal loan to my wife (a stay-at-home mother). At the time of transfer, I declared the capital gain and paid the corresponding tax on the gain on the difference between the FMV (fair market value) and the ACB (adjusted cost base). We also set up additional spousal loans from time to time from savings from my executive compensation.

Now that I am retired and can split my pension income with my wife, there is no more need for the spousal loans. Should we keep the spousal loans going? She pays me the prescribed rate interest annually, and I declare this on my income annually. What is the best strategy to have the spousal loans reimbursed to minimize taxes? The market value of the investments, including non-realized capital gain now exceeds the loan amount?

I have seen advice on setting up a spousal loan for investments, but I can’t find much on the need to reimburse one and how to do so.

—Ghislain

How to set up a spousal loan in Canada—and what not to do

Thanks for your question, Ghislain…

Continue Reading On moneysense.ca »

Kyle Prevost, editor of Million Dollar Journey and founder of the Canadian Financial Summit, shares financial headlines and offers context for Canadian investors.

Banking on stability and caution

Canadian investors love their banks. Year in and year out, banks provide dependable dividend growth and solid long-term share price increases as well. They also make up a massive part of any Canadian index fund, as well as the bulk of Canadian pension funds.

So, when the banks pull back the curtains to reveal how business is doing, we take notice.

With a set of mixed results, the main takeaway appears to be that the Big 6 (BMO, CIBC, National Bank, RBC, Scotiabank and TD) looked at the economic storm clouds on the horizon and decided to batten down the hatches. 

By provisioning more of their profits for default loans, the news wasn’t as good as recent previous quarters. That said, these conglomerates continue to tick along cautiously, dependably spinning off free cash flow…

Continue Reading On moneysense.ca »

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