The First Home Savings Account Has Arrived
Canadians have gotten a boost to save for buying a home. The new registered plan, the First Home Savings Account (FHSA), became available on April 1, 2023, and was included in the last budget from the governing Liberals.
Investment Income and Income Tax
Investments can deliver a major source of income and tax implications for individuals. Each major type of investment income is subject to different tax treatment.
Understanding how your investments are taxed is an important consideration for investment planning since after-tax yield is more important than gross returns. The most common types of income most investors will receive are interest, dividends, and capital gains.
Executive Health Plans 101
Executive Health Plans (EHPs) are insurance solutions designed for incorporated businesses. EHPs provide critical illness protection for the key person of the company, typically the business owner.
What We Know About the Tax-Free First Home Savings Account (FHSA)
Canadians will soon get a boost when it comes to saving for their first home. Starting in April of 2023, the Tax-Free First Home Savings Account (FHSA) will be available to those who have dreams of owning a home. This account is part of a campaign promise by the Liberals in the last election. Here is what we know so far.
6 Recession Tips.. it is never too late to plan
Depending on who you ask and the definition they use, a recession has occurred or is about to occur. The traditional definition is two consecutive quarters of economic decline measured in Gross Domestic Product. A more complex definition is a slowing of economic activity and an increasing unemployment rate.
Financial and lifestyle preparations for a recession should be undertaken now to lessen the effects should it occur. And if it does not, then you will be even better prepared for any economic shock that could unexpectedly occur.
Tips on Retirement Savings Plan
A retirement savings plan is a way of protecting your post-retirement financial lifestyle. However, in recent times, recessions, stock-market declines, housing market bubbles, joblessness, and a global pandemic have created a series of challenges for people trying to start, grow, or maintain a retirement savings plan. With all these economic uncertainties, it’s natural to wonder if you’re doing all you can to protect your retirement nest egg. Taking a back to basics approach can instruct you on how to keep your retirement financial plan on track during uncertain economic times and beyond.
Pay-down Your Mortgage or Top-up Your TFSA
The question of reducing debt or contributing to savings will continue to be debated for as long as people plan to retire in Canada.
Of course opting for both: reducing debt and increasing savings is the ideal. As for which is better, however, really depends on the individuals involved, their goals and feelings, and their unique financial situations.
If you find you just can’t decide whether to save or pay off, start by contributing to a TFSA; those deposits can easily be withdrawn and applied to your mortgage in the future.
Effects of inflation
We all know the cost of goods and services rises over time. Single postage stamps that cost 85 cents just 3 years ago now cost a dollar. The same thing has happened to virtually everything we purchase. This is what we call “inflation” – a sustained rise in the cost of goods and services over time. It also means that the purchasing power of a dollar decreases over time because you need more and more dollars to buy the exact same goods or services. This has important implications for your savings; especially in your retirement years.
5 Ways to Avoid Capital Gains Tax
Capital Gains tax occurs when you sell capital property for more than you paid for it. In Canada, you are only taxed on 50% of your capital gain. For example, if you bought an investment for $25,000 and sold it for $75,000 you would have a capital gain of $50,000. You would then be taxed on 50% of the gain. In this instance, you would pay tax on $25,000. In Canada, there are some legitimate ways to avoid paying this tax: Tax shelters, Lifetime Capital Gains Exemption, Capital Losses, Deferring, and Charitable Giving.
Why Living Benefits Are the Foundation of Your Financial Tool Kit
Imagine you woke up today and could no longer go to work – Would you be able to pay your bills? What if you are diagnosed with cancer and must travel for treatments? Could you afford to lose your income and pay for healthcare expenses?
For most Canadians, the answer is no. A survey conducted by RBC found that 50% of Canadians could not afford to take time off work if needed. Luckily, there is a solution available.
