Personal Savings getting you down? There are always smart ways to increase your savings.
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When does it make sense to sell real estate in a larger city and buy in a smaller one? + MORE Jun 6th
Q. I am currently living in Saint John, NB, and renting ($1,450 a month + Internet—very expensive for this little town). I also own a condo in Burlington, Ont., worth about $500,000, which I have been renting out for the past two years. With income taxes factored in, the rent just covers carrying .... More »
Should you leave corporate savings in your company? + MORE Mar 6th
I have $1 million accumulated in my corporate account. I don’t need that money for my corporation. What is the best way to take that money out with minimal tax? I’m 39 and I’m not planning to retire soon.—Chris
Withdrawing money from a corporation to invest
One of the first things to i.... More »
“My financial advisor overcontributed to my TFSA—now what?” Oct 24th
My financial advisor asked me for more money than the allowable contribution room of my TFSA, causing a CRA penalty. I did tell him that I could only contribute the $6,000, but he asked me for $28,500. I paid a fine of $2,000 to CRA.
What happens now? Do I ask him to repay the commissions he.... More »
My three kids chose different educational paths. How do I withdraw RESP funds in a way that’s fair to them and avoids unnecessary taxes? + MORE Sep 4th
Q. I have a registered education savings plan (RESP) for my three children, the youngest of whom is starting university this fall. We have made some withdrawals for the older two kids but the plan is still well-funded. Our middle child has decided to pursue a co-op university program, which is .... More »
Ways to “unlock” retirement savings in a LIRA Dec 12th
Q. When I retired at age 63, the financial institution that managed my DPSP account paid the company-contributed portion (approximately $30,000) into a LIRA.
Given all the constraints related to drawing down a LIRA/LIF, I am now 65, living in BC, and have two questions:
Since I was already at re.... More »
10 ways to save more and pay down your debt
– moneysense.ca
1. Set a goal
If you’re serious about saving you need to set a goal so you know what you’re saving for. Whether it’s a trip to Japan you hope to take in a few months or saving for retirement, having a very specific goal will help you stay motivated and on track.
2. Track your dollars
The best way to get on track to saving is to spend less than you earn. Tracking your spending—either through a daily journal or an app—can help you do this.
3. Trim spending
Consider trimming expenses. Once you know how much you’re spending monthly, you can decide what areas you’d like to cut back on so you can meet your savings goal.
4. Kill two birds with one stone
For those with low to moderate incomes, paying off debt—including the mortgage—is the best tax-planning you can do. That’s because you don’t pay taxes on the capital gains on your home and there’s no tax on the return you get for getting out of debt.
5. Automate it!
Set up an automatic transfer of funds to a savings to a savings account (or TFSA or RRSP) so that a set amount—say 10% of your gross monthly income that comes off your paycheque automatically…
Tax confusion: What’s deductible and what’s not
– moneysense.ca
A penny saved is a penny earned. That’s one of the great truisms in life —and in personal finance. But I don’t think the Canada Revenue Agency (the CRA) entirely agrees with it. To them, money spent on earning income is deductible, but money spent on ultimately saving money by arranging financial affairs or doing financial planning for the future is not.
It is one of the great quirks of the Canadian Income Tax Act (ITA). On the one hand you have services like investment counseling that are provided in order to generate income. They are deductible under the act – section 20 (1) (bb). On the other hand, you have services that help with other elements of your financial affairs (accounting, budgeting, financial planning, etc.). These are not deductible.
This brings up some important points for consideration, since we’ve kicked open a bit of a hornet’s nest lately regarding the concept of ‘tax fairness’ in Canada. With the rise of many wealth management service fees being paid separately, consumers often pay a simple household fee based on total Assets Under Management (AUM) for their family unit…
Older Canadians forgoing retirement, working through golden years: census
– canadianbusiness.com
Lured by the promise of relaxation and spare time, the Halifax resident thought he’d relish the opportunity to walk away from an executive position and enjoy the fruits of his labour. But restlessness and a desire to keep contributing drove him back to the job market within weeks, and he was ensconced in a different corporate office three months after relinquishing his old one.
In the four years that followed, a global economic crisis ate into VanGorder’s retirement savings, making the prospect of ongoing work both attractive and inevitable.
Eventually, he decided to go into business for himself, allowing the flexibility of both a stable work life and the perks of retirement _ making VanGorder, 74, a prototype of the new brand of retiree.
The latest census data from Statistics Canada show more and more Canadians are choosing to eschew the traditional retirement age, whether for their health, their finances or just for the fun of it.
More than 53 per cent of Canadian men aged 65 were working in some form in 2015, including 22…
In the four years that followed, a global economic crisis ate into VanGorder’s retirement savings, making the prospect of ongoing work both attractive and inevitable.
Eventually, he decided to go into business for himself, allowing the flexibility of both a stable work life and the perks of retirement _ making VanGorder, 74, a prototype of the new brand of retiree.
The latest census data from Statistics Canada show more and more Canadians are choosing to eschew the traditional retirement age, whether for their health, their finances or just for the fun of it.
More than 53 per cent of Canadian men aged 65 were working in some form in 2015, including 22…
Paul Edmondson / Corbis
TORONTO – The three months of Bill VanGorder’s retirement were among the longest of his career.
Lured by the promise of relaxation and spare time, the Halifax resident thought he’d relish the opportunity to walk away from an executive position and enjoy the fruits of his labour. But restlessness and a desire to keep contributing drove him back to the job market within weeks, and he was ensconced in a different corporate office three months after relinquishing his old one.
In the four years that followed, a global economic crisis ate into VanGorder’s retirement savings, making the prospect of ongoing work both attractive and inevitable.
Eventually, he decided to go into business for himself, allowing the flexibility of both a stable work life and the perks of retirement – making VanGorder, 74, a prototype of the new brand of retiree.
MORE: What the census tells us about Canada’s aging population
The latest census data from Statistics Canada show more and more Canadians are choosing to eschew the traditional retirement age, whether for their health, their finances or just for the fun of it…
TORONTO – The three months of Bill VanGorder’s retirement were among the longest of his career.
Lured by the promise of relaxation and spare time, the Halifax resident thought he’d relish the opportunity to walk away from an executive position and enjoy the fruits of his labour. But restlessness and a desire to keep contributing drove him back to the job market within weeks, and he was ensconced in a different corporate office three months after relinquishing his old one.
In the four years that followed, a global economic crisis ate into VanGorder’s retirement savings, making the prospect of ongoing work both attractive and inevitable.
Eventually, he decided to go into business for himself, allowing the flexibility of both a stable work life and the perks of retirement – making VanGorder, 74, a prototype of the new brand of retiree.
MORE: What the census tells us about Canada’s aging population
The latest census data from Statistics Canada show more and more Canadians are choosing to eschew the traditional retirement age, whether for their health, their finances or just for the fun of it…
RBC says mortgage demand up ahead of new rules, reports record annual net income
– canadianbusiness.com
TORONTO _ Royal Bank of Canada saw an uptick in demand for mortgages this fall as borrowers look to secure loans before tougher rules _ including a stress test _ take effect in the new year, one of the bank’s executives says.
Neil McLaughlin, RBC’s head of personal and commercial banking, told analysts on its fourth-quarter earnings call there is a heightened awareness of the banking regulator’s revised mortgage underwriting guidelines, which is expected to reduce the maximum amount homebuyers who don’t need mortgage insurance will be able to borrow.
“We have seen a little bit of pull forward this fall,” McLaughlin told analysts on the call Wednesday. “As we talk to customers, some of them are surprisingly aware of what the stress test is about and have decided to move more quickly.”
McLaughlin’s comments came as RBC beat analyst expectations with a 12 per cent jump in its fourth-quarter net income to $2.84 billion, driven by double-digit year-over-year increases in personal and commercial banking, wealth management and capital markets…
Neil McLaughlin, RBC’s head of personal and commercial banking, told analysts on its fourth-quarter earnings call there is a heightened awareness of the banking regulator’s revised mortgage underwriting guidelines, which is expected to reduce the maximum amount homebuyers who don’t need mortgage insurance will be able to borrow.
“We have seen a little bit of pull forward this fall,” McLaughlin told analysts on the call Wednesday. “As we talk to customers, some of them are surprisingly aware of what the stress test is about and have decided to move more quickly.”
McLaughlin’s comments came as RBC beat analyst expectations with a 12 per cent jump in its fourth-quarter net income to $2.84 billion, driven by double-digit year-over-year increases in personal and commercial banking, wealth management and capital markets…