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The best high-interest savings accounts in Canada for 2024 May 21st
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The best high-interest savings accounts in Canada for 2024
Here are the accounts offering the highest interest rates and lowest fees.
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Should you max out your RRSP before converting it to a RRIF? Apr 30th
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My husband and I retired last September. We have moved into a condo and are now travelling. Enjoying life but I’m concerned about his RRIF. My husband turns 71 in June 2025. So, I understand we can contribute to his RRSP for 2025 before he turns 71 and claim the contribution for the.... More »
How much credit card debt does the average Canadian have? + MORE Nov 7th
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 »
Which ETFs are the most tax-efficient for Canadian investors? + MORE Sep 10th
One difference I’ve noticed when speaking with Canadian and U.S. investors is how much more focused the latter tend to be on taxes.
Chalk that up as a win for Canadians. Between the tax-free savings account (TFSA), registered retirement savings plan (RRSP), and first home savings account (FHSA).... More »
OAS payment dates in 2025, and more to know about Old Age Security + MORE Oct 8th
If you’re approaching or planning for retirement, you may have questions about Old Age Security (OAS) benefits, like: Do I need to apply for OAS? How much will I receive in OAS? When do OAS payments go out? We cover these questions and more below. But first, here’s a quick overview of how OAS wo.... More »
“Should I loan investments or money to my spouse?”
– moneysense.ca
Q. I’m 38 years old and have been married for 10 years. I would like to set up a spousal loan to my wife, who works part-time while raising our two young sons.
How would I go about doing this correctly? And is there any special consideration of a cash versus “transfer-in-kind” of stocks, other than that they would be considered sold and I would have to pay any capital gains tax on their appreciation in value at the time of transfer? Or, for record-keeping purposes, would it be better if I sold the stocks to loan cash?
–Ralph
A. The idea behind a spousal loan is to lend money from a high-income spouse to a low-income spouse. If the subsequent return on the investments exceeds the loan rate prescribed by the Canada Revenue Agency, the general result is that income is effectively moved from one spouse to the other, and the family may pay less tax overall.
Interest paid by the borrower is tax-deductible, as the borrowed money is for investment purposes. Interest income received by the lender is taxable, just like interest income on a savings account, GIC or bond…
How would I go about doing this correctly? And is there any special consideration of a cash versus “transfer-in-kind” of stocks, other than that they would be considered sold and I would have to pay any capital gains tax on their appreciation in value at the time of transfer? Or, for record-keeping purposes, would it be better if I sold the stocks to loan cash?
–Ralph
A. The idea behind a spousal loan is to lend money from a high-income spouse to a low-income spouse. If the subsequent return on the investments exceeds the loan rate prescribed by the Canada Revenue Agency, the general result is that income is effectively moved from one spouse to the other, and the family may pay less tax overall.
Interest paid by the borrower is tax-deductible, as the borrowed money is for investment purposes. Interest income received by the lender is taxable, just like interest income on a savings account, GIC or bond…
Should you use TFSAs and savings to pay off your mortgage?
– moneysense.ca
Q. Our mortgage is our only current debt, and between our TFSAs and other savings, my wife and I could pay off the full $230,000 remaining on our home on renewal later this year. What are the pros and cons of doing this?
–Patrick
A. At first blush this strategy may seem straightforward—and that the best use of money you have in TFSAs and savings would be to pay off your mortgage and eliminate that final debt. After all, you can make withdrawals from your TFSAs tax-free, and paying off debt is a golden rule of good financial planning.
However, there are other factors to consider before you and your wife make a final decision. For instance, how is the TFSA invested? If your TFSA money is held in a savings account, then the answer is a definite “yes”—the TFSA money should be used to pay off the mortgage. Since your savings are likely earning very meagre returns, anyhow (I’m betting the interest on your savings account is much lower than your mortgage rate), then this is a win-win scenario for you…
–Patrick
A. At first blush this strategy may seem straightforward—and that the best use of money you have in TFSAs and savings would be to pay off your mortgage and eliminate that final debt. After all, you can make withdrawals from your TFSAs tax-free, and paying off debt is a golden rule of good financial planning.
However, there are other factors to consider before you and your wife make a final decision. For instance, how is the TFSA invested? If your TFSA money is held in a savings account, then the answer is a definite “yes”—the TFSA money should be used to pay off the mortgage. Since your savings are likely earning very meagre returns, anyhow (I’m betting the interest on your savings account is much lower than your mortgage rate), then this is a win-win scenario for you…
