How to go about securing the best savings strategy in Canada.
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How to withdraw RESP funds + MORE Aug 27th
For years, you’ve saved up for your child’s college or university education with a registered education savings plan (RESP). Now, your kid is getting ready to start classes.
As the RESP’s subscriber (the person who opened and contributed to the account), you may have questions about h.... More »
TFSA contribution room calculator + MORE Jan 16th
Find out your current tax-free savings account (TFSA) contribution limit by using this calculator.
TFSA is a bit of a misnomer. While you can use it for straightforward savings, think of it more accurately as an investment holding account to store things like exchange-traded funds .... More »
COVID-19: Preparing for Financial Uncertainty + MORE Apr 4th
As the COVID-19 outbreak continues to batter markets and force more businesses to close their doors, talk of a looming recession grows louder. There is no question that many more jobs are at risk, and for those whose livelihoods are particularly vulnerable, now is the time to take stock of your fin.... More »
2020 Income Tax: What you can’t—and can—claim for your work-from-home office during the COVID-19 pandemic Sep 26th
You furnished a functional home office, you’ve got face masks ready by the door for when you need to run an errand, and you bought sanitizer (so many bottles of sanitizer). You’ve done your part to stay home and help flatten the coronavirus curve. The question now is: Can you write off working f.... More »
2020 Income Tax: What you can’t—and can—claim for your work-from-home office during the COVID-19 pandemic Dec 5th
You furnished a functional home office, you’ve got face masks ready by the door for when you need to run an errand, and you bought sanitizer (so many bottles of sanitizer). You’ve done your part to stay home and help flatten the coronavirus curve. The question now is: Can you write off working f.... More »
Invest or pay off debt?
– moneysense.ca
Q: I may be coming into an inheritance and I want to know if it would be better to pay off all the debt I have or invest the money? I have the following debt:
Mortgage: $60,000, at 2.5%, variable rate
Line of credit: $20,000 at 5.7%, variable rate
Car loan: $24,000 at 3.75%
I am 62 years old and the thought of being debt-free is very appealing, but also want to make the best financial decision for the long run.
— McFeely, Alberta
Nawar Naji, mortgage broker with Mortgage Architects:
The answer to your question really depends on a few factors:
1) When is your retirement date? i.e, how many more income earning years do you have?
2) Do you have any other savings, such as RRSPs, that will be used during your retirement years?
Now, if you have a few working years left and you have a retirement plan, then consider paying off the high interest debt first (line of credit at 5.7%). Paying off a depreciating asset (car loan) is not the best idea. If there are additional funds in the inheritance consider investing them into cash producing (such as dividend stock) to supplement your retirement income…
How homemade pizza can tame bad money habits
– moneysense.ca
In our April 2016 issue of MoneySense, we introduced you to Sammu and Mandy Dhaliwall, a young married couple with three kids from Brampton, Ont. They are trying to juggle RRSPs, TFSAs, paying down their $350,000 mortgage as well as their $90,000 home equity line of credit. Throughout the year we gave them a financial challenge every four weeks to help them get their finances in tip top shape. Make sure to follow along! For their latest challenge, we asked them to read Moolala by Bruce Sellery and to write about three money lessons they learned from the book. Here’s what they had to say. .cbR{box-sizing:border-box;display:block;width:100%;margin:1em 0;border:1px solid #bbb;padding:.5em}@media (min-width:480px){.cbR{width:250px;margin:0 0 1em 1em;float:right}}Will shopping for mortgage rates hurt our credit score?
Both Mandy and I found Moolala by Bruce Sellery—along with its accompanying exercises—an interesting read on how to manage money more effectively. Both of us had already gone through similar money exercises before but these served as good refreshers…
