All about Canadian Savings. Learn the ins and outs and get the latest news.
Latest News
Calculating expected returns on the sale of real estate + MORE Feb 27th
How do I calculate the capital gain on real estate sold in Ontario? I’m trying to figure out how much I should list my main resident property for—after deducting all expenses (interest, fees, taxes)—to arrive at a reasonable profit margin. Is there a tool or app that can do that? I searched th.... More »
The best TFSA investments in Canada for 2020 May 23rd
Table of contents
GICs
Bonds
ETFs
Mutual Funds
If you’re using your tax-free savings account solely to deposit cash over the long term, Certified Financial Planner Trevor Kearns says you’re not using the TFSA to its full potential.
You have more options (and better potential gains) than th.... More »
How much credit card debt does the average Canadian have? + MORE Jan 2nd
As the country re-opens after COVID-related restrictions, Canadians are faced with a worrying financial picture. Many have moved, others are looking to travel, and the cost of living is ballooning with unusual rates of inflation. Meanwhile, the Bank of Canada (BoC) rate hikes designed to curb these .... More »
Tess, 31, is a dentist making $140,000 a year. Now she wants to buy a house to start a family — during a pandemic. Is it the right time? + MORE Jul 11th
“Last year my husband, Jin, moved to the U.S. to complete a one-year medical fellowship,” Tess says. This means for now, she’s on her own to make concrete savings plans for her future, which includes buying a home where they can settle and start a family soon..... More »
The First Home Savings Account has some surprising benefits — even if you don’t end up with that home + MORE Apr 17th
The FHSA can be a good way for renters to save for a down payment even if they’re not sure about buying a home..... More »
Investing with your gut
– moneysense.ca
(Shutterstock)Most Canadians are boring investors; they sock their money away in plain vanilla mutual funds or Exchange Traded Funds (ETFs) inside of Registered Retirement Savings Plans (RRSPs) or Tax Free Savings Accounts (TFSAs). And that’s exactly how it should be—saving for retirement isn’t about blowing the light out with a hot stock.
Some people, though, have saved up enough money that spending $20,000 on an outside-of-the-box investment won’t ruin their futures, even if it all disappears. The point is not to squander the money, but to cash in on outsized returns that don’t come around every day.
Think about consequences
So, what’s the best way to put your “play money” to work? The first step is to think about how risky you want to be, says Allan Small, a senior investment advisor at HollisWealth. “It may sound silly when talking about ‘play money’, but understand the meaning of high risk,” he says.
In other words, what might be risky for one person may not be risky enough for another…
Does a 21-year-old need life insurance?
– moneysense.ca
Q: I am 21-years-old, studying full-time, working part-time, and I would like to know when is the “right” time to get life insurance and if I really need life insurance this young. I work in the banking services industry and I hear a lot of my customers discussing their insurance details with me and how I should get life insurance. But to be honest, I have no clue if I should get it all and if so, when should I purchase it?
—Brenda M.
A: The main reason for buying life insurance is to protect those who are financially dependent on you in the event you pass away. If you are 21 years old and have no dependents life insurance would not be a necessity. Having said that, there are many advantages to taking life insurance at a young age. You guarantee your insurability because life insurance rates are based on your age, gender, and health. So by taking a plan now, you can lock in at a lower premium rate for life. Here are some other reasons you may want to buy a term life insurance policy:
You have debt with a co-signer
If your parents signed off on your student loans, they’re responsible for paying off your debt if you die…
CPP and OAS after the death of a spouse
– moneysense.ca
Q: I am 84 and many years ago my wife and I arranged to receive equal payments of CPP and OAS for tax benefit purposes. She has now died and of course her payments are cancelled.
As I paid more into the system when working, I was entitled to larger payments.
Now that her payments are stopped am I eligible for receipt of larger payments than the equalized payments received while she was still alive?
—Keith
A: I’m sorry for your loss, Keith. The death of a spouse can be a difficult time, both emotionally and financially.
With regards to your pensions, I’ll try to clarify the options and implications going forward.
You mention that you arranged pension sharing when you applied for your government pensions. Pension sharing is an option available to spouses applying for their Canada Pension Plan (CPP) retirement pensions. The intention is to reduce tax payable as a family by equalizing taxable incomes.
Due to Canada’s marginal tax system, with higher tax rates payable on higher incomes, to the extent that you can have a comparable income to your spouse in retirement, you can pay less combined income tax…
