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Latest News
Canada’s best credit cards for people with bad credit 2022 + MORE Apr 24th
Conventional wisdom may lead you to believe that if you have bad credit, you should swear off credit cards. However, if you want to improve your credit score, you’ll have to prove you can handle credit responsibly—and one way to do that is (you guessed it) to have a credit card. When used respon.... More »
Health-care workers Annie and Ben, 33, can afford a bigger house. But is now the time as they look to grow their family? + MORE May 1st
The couple has a combined annual income of $260,000, a modest mortgage, and is wondering how best to invest their savings..... More »
Saving up to buy your first home? Here’s why you should do it in a TFSA instead of an RRSP + MORE Dec 21st
Both allow your savings to compound tax-free, but for most younger first-time home buyers, the more flexible TFSA comes out on top..... More »
Making sense of the markets this week: March 3, 2024 + MORE Mar 5th
Kyle Prevost, creator of 4 Steps to a Worry-Free Retirement, Canada’s DIY retirement planning course, shares financial headlines and offers context for Canadian investors. And Stephanie Griffiths was an award-winning investor for almost 20 years before returning to her roots in journalism. She is .... 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 »
Missing Out on the Market: New Report Finds Millennials Simply Aren’t Investing
– ratesupermarket.ca
In the minds of millennials, saving up for a home and paying down debt seem to take priority by far over investing.
This is according to the Missing Out: Millennials and the Market report by the Ontario Securities Commission, which surveyed more than 1500 Ontarians aged 18 to 36 about their feelings towards saving and investing.
This age cohort has been called the most fiscally-conservative generation since the Great Depression and currently makes up more than a third of the Canadian labour force. Of the group surveyed, 80 per cent have savings accounts, and many of them either have automatic withdrawals or manually set aside money from their pay cheque each month. However, only about half of those millennials are investing those savings and, of those surveyed, 42 per cent have less than $25,000 in the markets.
Saving for a home, instead
More than half of millennials who don’t invest say they’re using their savings for other things, such as saving up for a home. And while one third of this age group already own a property, over half of those who don’t own a home say purchasing a home is one of their top three financial priorities…
How can I use my extra RRSP room when I retire?
– moneysense.ca
Q: In 2019, I will retire. I will contribute $26,000 to my RRSP in 2018, but I will have ~$26,000 of contribution room available from my 2018 income in 2019. Is there any way to use this RRSP room and enable a deduction against my 2018 income?
For example, could I contribute an additional $26,000 to my RRSP in January 2019, have it be a deduction off of my 2018 income, and still be within my 2019 contribution limit?
—Bill
A: Good question, Bill. I’ll give you a little primer on registered retirement savings plan (RRSP) room and deductions.
RRSP room is generated from earned income like employment income, self-employment income and even net rental income. Your RRSP room for this year is equal to 18% of your earned income for last year, up to a maximum.
Ask a Planner: Leave your question for Jason Heath »
For 2018, the income required to generate the maximum 2019 RRSP room of $26,500 is $147,222. So, assuming you have $147,222 or more of earned income for 2018, you will have $26,500 of RRSP room for 2019…