During income-earning years, a Tax-Free Savings Account (TFSA) can be used to fund numerous expenses: a child’s education, family trips, a wedding – just about anything. Once you retire, you’ll discover that a TFSA is just as versatile, helping you to meet a variety of needs unique to retirement. CONTINUE TO CONTRIBUTE Many people in traditional retirement years still earn … Read More
THE PANDEMIC AND THE PIGGY BANK
Just over 12 months ago, provinces and territories responded to the COVID-19 pandemic by declaring states of emergency. Restrictions and lockdowns have affected Canadians in different ways, and one of the starkest differences involves savings. Some people needed to tap into their savings, while others saw their savings accumulate. WHEN INCOME DECREASES Business owners, professionals and employees working in sectors … Read More
TAPPING AN RRSP FOR A HOME OR AN EDUCATION
At some point, a family member, or even you, may consider the Lifelong Learning Plan or Home Buyers’ Plan. Both allow Registered Retirement Savings Plan (RRSP) withdrawals on a tax-free basis, provided funds are repaid according to plan rules. An individual can withdraw up to $20,000 under the Lifelong Learning Plan to help cover their own or their spouse’s education … Read More
SAVE TAX BY SPLITTING INCOME WITH CHILDREN
When you think of income splitting, what first comes to mind is likely moving taxable income to a lower-income spouse. But several income splitting opportunities with children are available and worth exploring. The more income you can transfer to others in a lower tax bracket, the more tax you save as a family. TAX SAVINGS WITH MINOR CHILDREN Under attribution … Read More
RETIREMENT PLANS CHANGING? EVALUATE AND PIVOT
It’s always helpful to have a retirement date in mind and imagine how you want to spend your retirement years. But there can be turns in the road. Situations may arise that cause you to change your plans in order to achieve your retirement goals. Here’s a variety of fictional scenarios reflecting real-life situations that lead to changes in retirement … Read More
STRATEGIES AND TIPS TO BOOST YOUR RRSP
With the Registered Retirement Savings Plan (RRSP) contribution deadline around the corner, it’s only natural to have contributions on the mind. But there’s more to RRSPs than making regular contributions. Here are some ways to help you or a family member get more from an RRSP, now or in the future. INVESTING YOUR RRSP TAX REFUND To appreciate how you … Read More
HOW DID YOU REACT TO MARKET VOLATILITY?
When your investment program was established, you answered questions that helped determine how much risk you were able to tolerate. You had to imagine how you would react to a significant loss in portfolio value. But imagination isn’t needed when reality hits – just take yourself back to the COVID-19 fallout of March 2020. Major stock markets tumbled by 30 … Read More
WHEN SELLING AN INVESTMENT IS A TAX WIN
Over time, it’s inevitable that some investments will underperform, with promise turning to disappointment. This year, due to COVID-19, there’s an increased chance of underperformance – especially for holdings in the hospitality, retail, entertainment and transportation sectors. However, there can be a silver lining to an investment losing value. Tax-loss selling. When the current price of a non-registered investment has … Read More
WHY THE MONEY TALK MATTERS
It’s never been easy discussing financial matters with family members, whether talking to your parents or adult children. But quite often, there’s one important reason to gather your courage and have the money talk. If you don’t address the issue when it’s on your mind, you may allow problems to develop down the road. Preventing problems. Here are just a … Read More
HOW TO MINIMIZE TAX ON RETIREMENT INCOME
When you’re retired, you need an income strategy that balances today’s cash flow needs with an investment strategy to safeguard your ability to produce income in the future. Tax-saving strategies You will also want to pay as little tax as possible so that you keep more of your hard-earned savings. Here are four ideas to help you minimize the tax … Read More