An RRSP could be an important vehicle in reducing the amount of tax you pay in your lifetime. However, an RRSP may not be for everyone. Last week, we reviewed marginal tax brackets and took a mathematical approach to determine whether you should contribute to an RRSP. Incomes below $39,676 in 2018 could save between […]
The Income Tax Act allows you to contribute up to 60 days after the end of the year to your RRSP. For the 2018 tax year, the last day to contribute is Friday, March 1. This 60-day buffer gives you ample time to estimate your taxable income and determine if it makes sense to make […]
Within financial services, the term family is referred to as a household. A household used to be defined as those people who resided at the same address, but now extends beyond a single physical address and includes members of the same family, even if they reside in different residences. Families that work together with one […]
The Tax Free Savings Account (TFSA) is a registered account. One of its features is the ability to name a beneficiary. When we are opening a TFSA for a client, they must advise us who they would like to name as a beneficiary. Common beneficiaries are a spouse, children, charity or estate. Before diving into […]
Last week we mentioned the Tax Free Savings Account contribution limit was increased to $6,000 for 2019. Contributing early on, say this month, isn’t always easy. Holiday bill payments, installment payments, debt payments and regular bills are all competing against your hard-earned dollars. Below are a few tips I’ve learned over the years that have […]
The Tax Free Savings Account turns 10 this month and many Canadians have fully embraced the benefits that come from tax-efficient investment income and growth within these accounts. The federal department of finance releases index adjustments for personal income tax and benefit amounts every year. The index rate is effectively the Consumer Price Index reported […]
The Tax Free Savings Account (TFSA) has now entered it eighth year. The contribution limits have been $5,000 each year between 2009 and 2012, $5,500 in 2013 and 2014, $10,000 in 2015 and $5,500 in each of the last two years. Cumulatively, you could have now contributed $52,000. Over the last seven years, we have […]
The best part of a Registered Retirement Savings Plan (RRSP) is the deferral of income and growth, which helps to build up a nest egg for retirement. Apart from emergency needs or infrequent lump sum amounts, withdrawals from an RRSP should be kept to a minimum. When ongoing income is needed from the account, it’s […]
Registered Retirement Savings Plans (RRSPs) were first introduced 60 years ago, created by the federal government to help people who didn’t have a work pension to save for retirement by socking away pre-tax money. In 1957, the threshold for the RRSP was the lesser of 10 per cent of income or $2,500. Over the years […]
The financial service industry has so many different terms for the same thing which makes it sound more confusing than it really is. But it’s not that complicated when you break the types of accounts into two broad types – registered and non-registered. For example, a non-registered account can also be referred to as a […]
