When do Your need a Power of Attorney?

Hopefully, you’ll never suffer an illness or disorder that seriously impairs your cognitive functioning. But if you ever suffer such a condition, you may lose the ability to manage your finances – from paying bills to making investment and income decisions. And you could be vulnerable to financial fraud. This is when you want a power of attorney, or mandate … Read More

Leaving More to Your Heirs

Imagine a $1 million estate including $200,000 of stocks in a non-registered account, a $300,000 Registered Retirement Income Fund (RRIF) and vacation property valued at $500,000. But it’s not $1 million to the heirs. There’s a $100,000 capital gain on the stocks and a $300,000 capital gain on the vacation property. At a 50% marginal tax rate, tax payable is … Read More

Next Best Thing to Saving Tax Now

The federal government has recently taken away several tax advantages enjoyed by individual Canadians and businesses, from ending tax-free switching of corporate class funds to removing key benefits of income sprinkling. Though some immediate tax-saving methods are gone, tax-deferral methods remain – and that may be the next best thing. Deferring tax is not just a matter of postponing the … Read More

When You Own a Business

If you’re a business owner thinking of retirement, finding a successor isn’t your only concern. You need to determine whether you want to remain involved with the business. For some owners, it’s an easy decision – they’re ready to make a clean exit. But for others, the business remains part of their identity. They prefer maintaining ties to the business … Read More

Retiring Gradually

According to the 2016 census, one in five Canadians aged 65 and over were working, with 30% of this group working full time. Some continued in their regular jobs, while others became consultants, entrepreneurs and new business owners. Although many seniors work strictly for income, others are motivated by the wish to keep physically and mentally active, enjoy social interaction … Read More

How to Keep Your TFSA Aligned With Your Goals

This year, you can contribute $6,000 to your Tax-Free Savings Account (TFSA), bringing the cumulative total of allowable TFSA contributions to $63,500, or $127,000 between a couple. This means that a TFSA can help meet any investment objective. Your first decision You need to look at all components of your financial plan and decide where TFSA investments can help you … Read More

Should You Name an Adult Child as Executor?

When deciding on an executor, or liquidator in Quebec, it’s quite common to name an adult child to administer the estate. But if you have more than one child, it’s a decision to make with caution. Here’s a look at the pros and cons of going this route when siblings are involved. You can name two or more children as … Read More

“I’d Like to Talk to You About a Loan”

If you haven’t experienced it already, you may one day. A friend or relative is in dire straits and asks you for a loan. In some cases your instincts might tell you right away how you feel about the request. If the person is a loved one with a genuine need you may be only too glad to help out. … Read More

When Life Changes, So Do Financial Plans

Life is what happens to you while you’re making other plans, the saying goes. We just never know when the unexpected may happen. Here are four scenarios that look at various life changes and how financial plans adapt to evolving needs. Tara launches a business After 20 years in management, Tara lost her job in a reorganization. Her friends, who … Read More

RRSPs for Owners of a Business

If you want to make tax-deferred investments in an RRSP, you would draw a salary from your corporation to gain earned income that creates RRSP contribution room. Or you can save for retirement, also on a tax-deferred basis, by leaving excess funds in an investment portfolio within the corporation – eventually to be withdrawn as dividends. Each option has its … Read More