When are tax-deferred and tax-free accounts actually taxable? + MORE Feb 9th

Not sure how to make a retirement plan? Read on…
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Skipping the starter home for the next size up? Be financially savvy about it May 4th

Taking on too big a debt load can leave first-time buyers house poor, unprepared for retirement and stressed by ordinary purchases for things like car repairs and vacations, Lesley-Anne Scorgie writes..... More »

Marriage or mortgage: Which is the better investment? Mar 30th

Weddings can be expensive, but so can many of the things that come after a wedding—like a home purchase, starting a family and saving for retirement. And so money is an important relationship issue even before a couple ties the knot.  Both weddings and home purchases can both cause people to thin.... More »

What happens at the end of a reverse mortgage? Mar 9th

When you get a reverse mortgage, you tap the equity in your home without having to sell it. There are several advantages to having a reverse mortgage, for those who qualify: For one, you gain access to part of the cash value of your home, increasing your liquidity. Setup and legal fees are rolled in.... More »

Reality-testing your financial plan + MORE Mar 16th

Q. I am contemplating changing financial planners and I just met with one who seemed very impressive. Within about three hours he had everything laid out for me: the investments I should purchase, the use of life insurance, delaying CPP to 70 and more. Still, I would like to get a second opinion bef.... More »
Q. I saw your blog online; thank you so much for the wonderful job that you are doing—it was very informative! That motivated me to start investing too, but now I have a couple of questions. I understand that there is tax on US dividends in TFSA, do we pay tax as well when we sell:

U.S. stocks in TFSA
U.S. stocks in RRSP
Canadian stocks in RRSP

A. It’s great to hear we motivated you to start investing, Tawheeda. Stocks are a great way to build wealth for the long term, despite the short-run volatility. Tax plays a role in your portfolio construction and returns, so let me explain the implications. 
Tax-free savings accounts (TFSAs) are mostly tax-free. When you buy and sell an investment for a profit, that is tax-free inside a TFSA, regardless of the type of investment. 
One exception could be if you are day trading in your TFSA. If you are engaging in frequent trading activity, there is a risk your profits could become taxable as business income. For most long-term, buy-and-hold investors, this is not an issue…

Continue Reading On moneysense.ca »

Save, sell, borrow, work: How to take your RRSP top-up over the topIn most circumstances, driving money into your RRSP is a great deal, writes Lesley-Anne Scorgie. Here’s some ideas for bulking up your contribution before the March 1 deadline.

Continue Reading On thestar.com »

“I don’t care about my retirement right now, I care about staying alive.”
Walter Schultz, who is in his 40s, lives in Kitchener, Ont., and through his employment as a technician at a lab, he has a deferred profit-sharing plan and an employee Registered Retirement Savings Plan (RRSP). For now, at least, he says that’s as much as he’s willing to invest towards his so-called golden years.
“I watched how the markets were tanking last spring and while you want to do the right thing, you don’t want to throw money down a rat hole,” says Schultz of his decision to hold off on individual contributions to his RRSP early in 2020. 
On top of the effect COVID-19 was having on the market, he worried about the virus itself. “Without going into detail, I’m classified in the at-risk category when you do the screening for COVID,” he says. “Seeing how the economics of the world was going and as my life could be in jeopardy here, I thought ‘OK, it’s time to suspend putting that little bit extra that was being stashed away and not having access…

Continue Reading On moneysense.ca »

Generally savings accounts offer very low interest rates, so if you want to earn on your deposits (rather than simply use your account as a temporary “holding tank” for funds you’ll soon be using for purchases, or directing to longer-term saving and investing vehicles), a savings account with high interest is a no-brainer. When shopping for an account, there’s more to consider than just the interest rate. So you can make an informed decision, in addition to using the finder tool to compare the fees and features of several different options available, you can scroll down to read seven editors’ picks for the best high-interest savings accounts (HISA) in Canada.
These are rates offered by Ratehub partners. You can find information about additional product options below.

You can compare high-interest rates in the table above or input your estimated account balance to compare the growth between HISAs, tax-free savings accounts, registered retirement savings plans and youth savings accounts…

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