Prepare for lower weekly benefits with 18-month mat leave + MORE Jan 25th

A Tax-Free Savings Account can be used for an emergency fund or saving for retirement if your RRSP room is gone.

Why is everyone always rushing to contribute to RRSPs this time of year? And does it makes financial sense for you to make extra contributions before the March 1 deadline?
This time of year is often referred to as RRSP season, as many of us rush to make contributions before the RRSP contribution deadline on March 1, 2018.
But what does this deadline mean?
The contribution deadline ensures your contributions count towards the 2017 tax year, which will then reduce your overall income tax burden and, more importantly, help you save more for your future.

The deadline is important and making a few extra contributions is financially savvy. But if you’re in debt or don’t have the extra cash, it can be hard to justify making that contribute more.  Wondering if it makes sense for you to make those extra contributions? Here are a few things to consider.
You can save on your income taxes
When we think about income tax we often think about the dollar amount we are required to pay in federal and provincial tax…

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Q. I bought BlackBerry shares in my RRSP back when they were trading at $76. They’ve dropped sharply since then. If I sell them in my RRSP, I can’t claim the capital loss to reduce my income taxes. What if I moved the shares to an unregistered account? I would have to pay tax on the RRSP withdrawal, but then could I sell the shares and claim the capital loss? — Liz S.
Sorry, Liz. Some tax-saving strategies are just wishful thinking, and this is one of them.
If you withdraw your BlackBerry shares from your RRSP and move them to a non-registered account, their book value will become equal to their market value on the day of the transfer, not the price you originally paid.
For example, suppose you bought 100 shares in your RRSP for $76 each, and now they have fallen to $17. If you transfer the shares to a non-registered account, you’ll have to pay income tax on the current market value of the holding, which is $1,700. And once those shares land in your taxable account they will have a book value of $17 each, not $76…

A Tax-Free Savings Account can be used for an emergency fund or saving for retirement if your RRSP room is gone.

OTTAWA — When Ottawa announced changes to EI parental leave benefits last year that will allow new mothers to receive benefits for 18 months, Heather Wilson was excited about the possibility of spending more time with her baby.
But after digging into the changes, Wilson and her husband are probably going to stick with the 12-month option.
That’s in large part due to the fact that when Ottawa announced the change, it didn’t increase the amount of money for the program. So, while you may receive benefits for a longer period, the weekly amount will be less.
The reduction means that new parents looking to make up the difference over the extended period with savings may want to have $10,000 or more put aside, on top of their other savings in preparation for the new baby.
READ: Surviving baby’s first year
Calgary-based Wilson says her EI maternity and paternity leave benefits, which max out at $547 per week before taxes, are already going to be a drop from her regular paycheque, so the further reduction to take 18 months may not work for her family’s budget…