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Latest News
The holidays on a budget: How to avoid credit card debt Nov 28th
For many Canadians, managing debt is a year-round challenge. Common tips tend to be simplistic or downright insulting (we’re looking at you, “skip your daily coffee”). Staying on top of your finances gets even more difficult during the holidays, when everywhere we look there are messages urgin.... More »
“Where do we pay income tax if we retire abroad?” + MORE Apr 24th
Q. We’re thinking about moving to Mexico full-time when we retire. Where would we pay income tax on our monthly Canadian pensions?
–Marianna
A. Many Canadians dream of a retirement that includes travel abroad. Some even move abroad part of the year, most of the year, or give up their Canadian r.... More »
Detox your spending and experience better financial health + MORE Jan 2nd
Using your creativity and resourcefulness to stop spending for a week on anything but essentials will give you more savings and less stress; you win both ways, Lesley-Anne Scorgie writes..... More »
The Best No-Fee Rewards Credit Cards For 2019 Nov 9th
Credit card rewards come in many forms. From points to statement credits to cold-hard cash, a good rewards card maximizes on your everyday purchases and ultimately helps you save.
Reward credit cards generally offer different amounts of rebates for particular spending categories (gas, grocery, phar.... More »
Prepare for lower weekly benefits with 18-month mat leave + MORE Jan 25th
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 h.... More »
Paying taxes on an inheritance
– moneysense.ca
Q: I have a son that is living in the U.S. (for the last 20 years) and married. Would he have to pay taxes in the U.S. when he inherits from his parents? How would the taxes work in this case?
–Alain
A: Alain, generally speaking no, your son will not have to pay any tax on inherited money or property. That being said there are assets that when inherited in the U.S. are taxable to the beneficiary—such as U.S. retirement accounts and U.S. savings bonds.
If the parent is Canadian and the asset has been taxed on their final Canadian tax return, the beneficiary will inherit the account/asset with a basis equal to the fair market value on the date of death.
–Alain
A: Alain, generally speaking no, your son will not have to pay any tax on inherited money or property. That being said there are assets that when inherited in the U.S. are taxable to the beneficiary—such as U.S. retirement accounts and U.S. savings bonds.
If the parent is Canadian and the asset has been taxed on their final Canadian tax return, the beneficiary will inherit the account/asset with a basis equal to the fair market value on the date of death.
Q: I have a question regarding taxes in TFSA investment accounts. Do we have to deal with any tax issues when we purchase U.S. or international ETFs? And if so, what are they?
–Margy
A: The Tax-Free Savings Account (TFSA) allows eligible Canadians to invest in a variety of investments. The options are only limited by the offerings of the financial institution…
Sears pension ‘slap’ shows need to diversify savings
– thestar.com
Employer-sponsored pension plans force people to save for retirement. But what happens when a company isn’t healthy enough to fund them?
Almost Half of Canadians Living Paycheque to Paycheque; Atlantic Canadians Struggling the Most: Report
– ratesupermarket.ca
Living paycheque to paycheque may not sound ideal, however it is a stressful reality for many Canadians, as shown in a new survey from the Canadian Payroll Association (CPA).
The CPA recently released the results from its ninth annual Survey of Employed Canadians and found almost half of employed Canadians (47 per cent) would struggle if their paycheque was delayed by even a week. This number increases for millennials in their 30s (55 per cent), and for those in their 40s (51 per cent).
Comparatively, 41 per cent of Canadians spend all or more of their entire paycheque, and most cite higher costs of living as the cause. This number, however, drastically shifts depending on where you live. Only a third of those in Quebec spend all or more of their net pay, while 59 per cent are living paycheque to paycheque in British Columbia. Ontario seems to line up with the national averages, as 49 per cent live paycheque to paycheque while 42 per cent spend all or more of their pay.
Lack of emergency funds or savings
The survey also asked employed Canadians how difficult it would be to come up with $2,000 within a month’s notice, in the case of an emergency…
What happens to a RRSP, LIRA, RRIF when you die
– moneysense.ca
Q: Is the tax rate on a LIRA the same as the RRIF if I die and the beneficiaries are my children?
—Brian
A: First, Brian, I want to clarify the difference between a LIRA and other registered accounts. A Locked-In Retirement Account (LIRA) or Locked-In Retirement Savings Plan (LRSP) is an RRSP created by a transfer of money from a pension plan upon leaving that pension. It may have been from a Defined Contribution (DC) pension plan where you bought mutual funds during your employment or it may have been from a Defined Benefit (DB) pension plan where you chose a lump-sum payout instead of a future monthly pension payment.
A LIRA is much like a regular RRSP. You can buy the same investments. The investments grow tax-deferred. Withdrawals are taxable in the future. One difference is that there are maximum annual withdrawals for a LIRA, whereas an RRSP has no maximum withdrawals. You can only take withdrawals from a LIRA prior to age 55 in special circumstances, whereas RRSP withdrawals can be made at any time…
Sears pension ‘slap’ shows need to diversify savings
– thestar.com
Employer-sponsored pension plans force people to save for retirement. But what happens when a company isn’t healthy enough to fund them?