Not sure how to make a retirement plan? Read on…
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How to make sure you have enough money to fund your RRIF withdrawals + MORE Apr 18th
After decades of using registered retirement savings plans (RRSPs) to reduce taxable income, it can come as a shock to discover the shoe will one day be on the other foot. At the end of the year you turn 71, you have to either cash out your RRSP (not recommended), annuitize it or convert it into a R.... More »
Self-employed with no pension Aug 16th
The year 1975 was the high water mark for bell bottoms, soul music and workplace pensions. Back then, around half of Canadian workers had some sort of pension plan through their employers to save for retirement. These days, just under 40%. For the roughly 2.6 million Canadians who work for.... More »
Can a non-resident open an investment account in Canada? Sep 21st
I moved to Sweden to study in 2021 and I am no longer considered a resident of Canada (to my understanding). However, I have some money to invest. I am not allowed to contribute to my TFSA which leaves me with contributing to an RRSP or an ISK (Swedish tax efficient account). In short, you pay ~0.40.... More »
Should you sell stocks you inherit? + MORE Sep 12th
An inheritance can be comprised of cash, securities, real estate, or other assets. When you inherit securities like stocks, there are income tax and strategic considerations. Here are some that you should keep in mind.
How are stocks taxed when you inherit them?
When a spouse or co.... More »
Watch: 4 things to consider before putting your money in a TFSA or RRSP Sep 28th
You know both can help lower how much income tax you pay—both are registered accounts, after all—but how do you decide whether to put your money into a tax-free savings account (TFSA) or a registered retirement savings plan (RRSP)? Watch this video to learn about the four things to consider befo.... More »
When are tax-deferred and tax-free accounts actually taxable?
– moneysense.ca
Q. I saw your blog online; thank you so much for the wonderful job that you are doing—it was very informative! That motivated me to start investing too, but now I have a couple of questions. I understand that there is tax on US dividends in TFSA, do we pay tax as well when we sell:
U.S. stocks in TFSA
U.S. stocks in RRSP
Canadian stocks in RRSP
–Tawheeda
A. It’s great to hear we motivated you to start investing, Tawheeda. Stocks are a great way to build wealth for the long term, despite the short-run volatility. Tax plays a role in your portfolio construction and returns, so let me explain the implications.
Tax-free savings accounts (TFSAs) are mostly tax-free. When you buy and sell an investment for a profit, that is tax-free inside a TFSA, regardless of the type of investment.
One exception could be if you are day trading in your TFSA. If you are engaging in frequent trading activity, there is a risk your profits could become taxable as business income. For most long-term, buy-and-hold investors, this is not an issue…
In most circumstances, driving money into your RRSP is a great deal, writes Lesley-Anne Scorgie. Here’s some ideas for bulking up your contribution before the March 1 deadline.“I don’t care about my retirement right now, I care about staying alive.”
Walter Schultz, who is in his 40s, lives in Kitchener, Ont., and through his employment as a technician at a lab, he has a deferred profit-sharing plan and an employee Registered Retirement Savings Plan (RRSP). For now, at least, he says that’s as much as he’s willing to invest towards his so-called golden years.
“I watched how the markets were tanking last spring and while you want to do the right thing, you don’t want to throw money down a rat hole,” says Schultz of his decision to hold off on individual contributions to his RRSP early in 2020.
On top of the effect COVID-19 was having on the market, he worried about the virus itself. “Without going into detail, I’m classified in the at-risk category when you do the screening for COVID,” he says. “Seeing how the economics of the world was going and as my life could be in jeopardy here, I thought ‘OK, it’s time to suspend putting that little bit extra that was being stashed away and not having access…
Walter Schultz, who is in his 40s, lives in Kitchener, Ont., and through his employment as a technician at a lab, he has a deferred profit-sharing plan and an employee Registered Retirement Savings Plan (RRSP). For now, at least, he says that’s as much as he’s willing to invest towards his so-called golden years.
“I watched how the markets were tanking last spring and while you want to do the right thing, you don’t want to throw money down a rat hole,” says Schultz of his decision to hold off on individual contributions to his RRSP early in 2020.
On top of the effect COVID-19 was having on the market, he worried about the virus itself. “Without going into detail, I’m classified in the at-risk category when you do the screening for COVID,” he says. “Seeing how the economics of the world was going and as my life could be in jeopardy here, I thought ‘OK, it’s time to suspend putting that little bit extra that was being stashed away and not having access…
Best high-interest savings accounts in Canada 2021
– moneysense.ca
Generally savings accounts offer very low interest rates, so if you want to earn on your deposits (rather than simply use your account as a temporary “holding tank” for funds you’ll soon be using for purchases, or directing to longer-term saving and investing vehicles), a savings account with high interest is a no-brainer. When shopping for an account, there’s more to consider than just the interest rate. So you can make an informed decision, in addition to using the finder tool to compare the fees and features of several different options available, you can scroll down to read seven editors’ picks for the best high-interest savings accounts (HISA) in Canada.
These are rates offered by Ratehub partners. You can find information about additional product options below.
These are rates offered by Ratehub partners. You can find information about additional product options below.
You can compare high-interest rates in the table above or input your estimated account balance to compare the growth between HISAs, tax-free savings accounts, registered retirement savings plans and youth savings accounts…
