The best TFSAs in Canada for 2024 + MORE Jan 9th

There are plenty of bank savings account options in Canada! Stay on top of the best plans right here.

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How to save money in Canada: A new way that offers higher interest and more flexibility + MORE Dec 17th

If you’re saving up for a financial goal or large expense—whether it’s a vacation, future vet bills or just your rainy day fund—chances are you’re setting aside money in a regular chequing account, a high-interest savings account (HISA) or a guaranteed investment certificate (GIC). Maybe y.... More »

Moving money from RRSPs, RRIFs and TFSAs in retirement + MORE Jan 14th

Ask MoneySense My husband and I are retired with $200,000 in our TFSAs, $230,000 in our RRSPs and RRIFs, and we have an emergency fund. Our household income is $85,000 a year. My husband may need nursing home care at some point, so I have been moving assets from the RRSPs to our TFSAs for flexibi.... More »

Students protest cuts to amount of OSAP grants they can receive + MORE Mar 4th

The current proportion of OSAP funding is about 85 per cent grants to 15 per cent loans, but starting this fall students will receive a maximum of 25 per cent of their OSAP funding as grants..... More »

The best TFSAs in Canada for 2024 + MORE Apr 2nd

Save The best TFSAs in Canada for 2024 We’ve rounded up the best TFSA rates on savings accounts and GICs, as well as the best TFSA investment accounts. Compare now Tap the button for more details. .... More »

Using a HELOC as an investment strategy: not as taboo as you might think + MORE Feb 27th

Ask MoneySense I wish to leverage my HELOC to invest in dividend-paying investments. How would you advise I approach this? Is this an effective tax savings tool? Is there any financial institution or products you would advise? —Martha Borrowing from a home equity line of credit You know,.... More »

Where should working retirees put extra income: A TFSA or an RRSP?

– moneysense.ca

Ask MoneySense
I will be receiving CPP and OAS as of June 2024. I intend on working one more year until I reach 66. My question is: Should I put all my CPP money into an RRSP to shelter it from tax? Or should I pay the tax on it and invest in a tax-free savings account?

–Gary

Where to put retirement income: RRSP or TFSA

Gary, believe it or not, it doesn’t matter if you contribute to a registered retirement savings plan (RRSP) or a tax-free savings account (TFSA). You get the same (after-tax) results. Well, almost.

But, before we go there, are you aware that you don’t have to start your Canada Pension Plan (CPP) benefits and Old Age Security (OAS) at age 65? Let’s do a quick recap on delaying CPP and OAS, and then tackle your RRSP versus TFSA question.

Should you delay CPP and OAS to after 65?

CPP benefits increase by 0.7% for every month delayed past your 65th birthday, working out to an annual increase of 8.4%. Plus, the CPP benefit is based on the average yearly maximum pension earnings (AYMPE)—the maximum salary amount on which you need to contribute to the CPP—over the last five years…

Continue Reading On moneysense.ca »

Make It Make Sense: What’s the Best Way to Invest in 2024?

– canadianbusiness.com

Welcome to CB’s personal-finance advice column, Make It Make Sense, featuring Ben Reeves, the chief investment officer at money-management platform Wealthsimple. Each month, Reeves answers reader questions on complex investment and personal-finance topics and breaks them down in terms we can all understand. Have a question about your finances? Send it to editor@canadianbusiness.com.

Q: With the markets feeling so risky, is it even worth investing right now when I can get five per cent interest in a savings account or GIC?

I’ve gotten this question a lot lately, and it’s quite reasonable. For the first time in 15 years, you can earn enough interest on your cash to outpace inflation. With most portfolios losing value in 2022, a guaranteed five per cent return in a high-interest savings account can be incredibly appealing. But keeping your money in cash is a short-term solution that can get in the way of long-term wealth building.

If you can’t take on any risk—say you need your money for a downpayment on a house in a few years—cash can be a good option…

Continue Reading On canadianbusiness.com »

Best FHSAs in Canada: Where to get the new first home savings account

– moneysense.ca

MoneySense editors’ take
Unused FHSA contribution room can be carried forward one year, up to a maximum of $8,000. So, if you opened an FHSA before Dec. 31, 2023 and have not yet contributed, you have a maximum contribution limit of $16,000 in 2024. Unlike with a tax-free savings account (TFSA), FHSA contribution room only begins to accumulate once you’ve opened the account.

Canadians can now boost their savings for a down payment on a home with a new type of registered account—the first home savings account (FHSA). The account, also referred to as the tax-free first home savings account, creates up to $40,000 in tax-free savings room for first-time home buyers. FHSAs were announced in the federal government’s 2022 budget plan as an initiative to help Canadians reach their goals of homeownership in competitive and challenging real estate markets. To date, more than 300,000 Canadians have opened an FHSA. In this article, we’ll answer common questions about the account and help you find the best one for your needs…

Continue Reading On moneysense.ca »

The best TFSAs in Canada for 2024

– moneysense.ca

Tax-free savings accounts (TFSAs) are more than a simple tax-sheltered savings account. TFSAs allow Canadians to hold cash, guaranteed investment certificates (GICs), stocks, bonds, exchange-traded funds (ETFs) or mutual funds within a structure backed by the government. Any interest made during your investment is yours to keep, tax-free.

Featured TFSA Accounts

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