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Should You Accept That Pre-Approved Credit Limit Increase? Jun 7th
If you faithfully pay your loans, mortgage and credit cards each month, then you’ve probably received a call or letter from your bank with the news that you were pre-approved for a credit increase or a line of credit.
You might be thinking, I don’t even use all the credit I currently have. I do.... More »
How to build a credit history while renting in Canada + MORE Oct 2nd
Being a young adult may afford you the freedom to live on your own. But for most people, that means renting a space—more than 80% of individuals aged 25 to 29 are renters. What’s more, younger Canadians who live in urban areas make up the largest group of renters, according to a study by RBC.... More »
Personal Income Tax Guide: The deadline for filing your 2021 return, tax brackets and more + MORE Dec 12th
The year 2021 has been a year about money, from the latest crypto to inflation to housing prices to taxes. While money trends can go up and down—or up and up for certain matters—taxes can be more predictable, if you’re prepared. This year’s MoneySense income tax guide includes the things you.... More »
Here’s what’s changed — and what hasn’t — in a pandemic RRSP season + MORE Jan 23rd
If you’ve been earning a good salary from a secure job, investing your savings in a tax-advantaged RRSP is a good idea. But if your income has suffered or your job security is uncertain, keeping what money you have saved in a TFSA is a better bet..... More »
The best high-interest savings accounts in Canada for 2025 + MORE Jun 4th
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4 things to get right when tapping RESP savings
– moneysense.ca
When your kids are on the cusp of starting university and you’re eyeing a hefty tuition bill, you are no doubt thankful for a sizeable balance in your Registered Education Savings Plan (RESP). Sure, it’s a sweet program—but now you have to master the complexities of taking the money out.
Here are four key things you should do with your kids’ RESP when they approach university or college age: Stop contributions when it makes sense; adjust your asset allocation; structure withdrawals to minimize tax; and deplete your RESP at the right time.
By now you probably know the RESP basics. You can earn up to 20% in “core” grants (termed “Canada Education Savings Grants” or CESGs) on your contributions to a maximum lifetime CESG grant total of $7,200 per child. (There are additional grants for low-income families and in certain provinces.) The grants, contributions and investment income are all tax-sheltered until you take the money out.
If you withdraw the money while your kids (the “beneficiaries”) are in post-secondary education, then “grants” and “income” are taxable in your kids’ hands, which generally means little or no tax if you do it right…
Here are four key things you should do with your kids’ RESP when they approach university or college age: Stop contributions when it makes sense; adjust your asset allocation; structure withdrawals to minimize tax; and deplete your RESP at the right time.
By now you probably know the RESP basics. You can earn up to 20% in “core” grants (termed “Canada Education Savings Grants” or CESGs) on your contributions to a maximum lifetime CESG grant total of $7,200 per child. (There are additional grants for low-income families and in certain provinces.) The grants, contributions and investment income are all tax-sheltered until you take the money out.
If you withdraw the money while your kids (the “beneficiaries”) are in post-secondary education, then “grants” and “income” are taxable in your kids’ hands, which generally means little or no tax if you do it right…
Risk virtual money, win real prizes
– moneysense.ca
This week my son Luca, 22, was doing some investing research for the small sum he has in his Tax-Free Savings Account (TFSA) and came across an online stock contest called Horizons ETFs Biggest Winner Trading Competition. He immediately signed up, happy to learn about investing while perhaps winning some prize money in the process.
Actually, this is one of two stock picking contests that Luca entered this week. The second is the Kitco/Stockpools Stockpicking Challenge.
Horizon’s contest
The games themselves are fairly simple. For the Horizons ETF game you are given $100,000 of “fantasy funds” to start trading your virtual trading account. There are a few key rules: You can only trade ETFs listed on the Toronto Stock Exchange; you must hold four ETFs and you can only invest up to 25% of your portfolio in any one ETF. But make no mistake—there are several volatile sector funds available on their pre-chosen list as well as hedged ETFs that can add a lot of volatility and upside to your final tally…
Actually, this is one of two stock picking contests that Luca entered this week. The second is the Kitco/Stockpools Stockpicking Challenge.
Horizon’s contest
The games themselves are fairly simple. For the Horizons ETF game you are given $100,000 of “fantasy funds” to start trading your virtual trading account. There are a few key rules: You can only trade ETFs listed on the Toronto Stock Exchange; you must hold four ETFs and you can only invest up to 25% of your portfolio in any one ETF. But make no mistake—there are several volatile sector funds available on their pre-chosen list as well as hedged ETFs that can add a lot of volatility and upside to your final tally…
