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Travel deals to take advantage of now, and save for later—when it’s safe Oct 24th
As social bubbles, provinces and countries slowly open up again, many people are looking to salvage their travel plans for this summer while others think about 2021. Admittedly, there’s still a lot of uncertainty in the world, but that isn’t preventing some providers from tempting lockdown-weary.... More »
How does a TFSA work? + MORE Dec 3rd
One of the side-effects of working for a personal finance magazine is that I’m always asked for advice. I always oblige, albeit sheepishly, without letting on that I’m still learning, too (which I freely admit here). For instance, the other day I was having lunch with some friends when we starte.... More »
The real cost of going back to the office + MORE Jul 10th
If your daily commute currently involves a sweatpants-clad walk from the coffee maker to your home office, you may have seen significant benefits, including a rise in your bank account balance. A 2022 survey from CISCO found that Canadians saved an average of $11,530 per year while working remotely.... More »
In Your Corner: Interest rates are near an all-time low — where can you get the best return on your savings? + MORE May 1st
These are the best high-interest (well, relatively high) savings accounts out there right now..... More »
How has inflation affected Canadians’ finances in recent years? + MORE Oct 15th
Inflation and higher interest rates have eroded Canadians’ purchasing power since 2022, particularly for lower-income households, a new report from the parliamentary budget officer has found.
But wealthier households have seen their purchasing power rise thanks in big part to their i.... More »
Tips for paying off your Home Buyer’s Plan
– moneysense.ca
(Image courtesy of Danilo Rizzuti / FreeDigitalPhotos.net)Q: I have maximized my RRSP contributions for 2013, including $1,300 paid back to my Home Buyers’ Plan (now at $13,000). I have about $12,000 in RRSP contributions to carry forward to next year. Can I apply it directly to my HBP all at once?
— Kelly Leach, Kelowna, B.C.
A: You can eat an entire chocolate cake in one sitting, but you might not want to. The same goes for using that RRSP carry-forward to eliminate what you owe under the Home Buyers’ Plan. Adrian Mastracci, a portfolio manager with KCM Wealth Management in Vancouver, says “there may be more benefit in repaying the minimum HBP and deducting the rest as a normal RRSP contribution for 2014.” The reason is that the RRSP contribution will defer income tax into the future, and give you a higher tax refund in the present. An HBP repayment doesn’t do either because you received those benefits already, when you make the RRSP contribution the first time around. In future years, if you have retired all other consumer debt, are making good progress on your mortgage, maxing out your RRSP, and still have cash on hand, you could retire your HBP early and celebrate your accomplishment with the aforementioned cake…
Ottawa moves ahead with plan to legislate shared-risk pensions
– moneysense.ca
Ottawa is proceeding with its plan to introduce shared risk pension plans in the federally regulated sphere and will likely introduce implementing legislation early in 2015, says minister of state for finance, Kevin Sorenson.
The federal government completed two months of consultation on the proposal Wednesday and Sorenson said it would likely begin drafting a bill in the fall.
The government has been under pressure from labour groups and some provinces to enhance the Canada Pension Plan, but Finance Minister Joe Oliver said as recently as last week that Ottawa doesn’t favour the move even if Ontario opts to go it alone.
Instead, the government has backed an incremental approach, including pooled pension plans, tax free savings accounts and more recently the shared risk proposal, also referred to as target benefit plans.
Sorenson said in an interview that the target proposal is needed because many defined benefit plans have run into funding difficulties since the economic crisis and many Canadians, especially new hires, are no longer being offered defined benefits…
The federal government completed two months of consultation on the proposal Wednesday and Sorenson said it would likely begin drafting a bill in the fall.
The government has been under pressure from labour groups and some provinces to enhance the Canada Pension Plan, but Finance Minister Joe Oliver said as recently as last week that Ottawa doesn’t favour the move even if Ontario opts to go it alone.
Instead, the government has backed an incremental approach, including pooled pension plans, tax free savings accounts and more recently the shared risk proposal, also referred to as target benefit plans.
Sorenson said in an interview that the target proposal is needed because many defined benefit plans have run into funding difficulties since the economic crisis and many Canadians, especially new hires, are no longer being offered defined benefits…
