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.
Many people tend to neglect the insurance part of their portfolio, but it is one of the most important tools you can have as a part of a financial plan. Just like your investments or other assets it should be reviewed regularly to ensure it is still protecting you in the ways that you need it to. The steps below will help you get started on your own life insurance audit.
We are experiencing a silver Tsunami. The leading edge of the Boomers turned 65 six years ago. On average, 1,250 Canadians turn 65 years old every single day. Most Boomers were born between 1961 -1965. That’s why you feel everyone has been turning 50. And people are living longer, much longer. With all of this happening, it’s small wonder that the media, politicians and the financial services business are all talking about retirement. That kind of focus may be good, because of what it means for savings habits and pressures on goods and services. There are a lot of myths we have to be wary of if we want to ensure we have an adequate retirement income that lasts a lifetime.
It’s a common misconception that having a pre-existing condition means that you automatically do not qualify for life insurance. The good news is this is not always the case and armed with a good life insurance agent, many individuals with pre-existing conditions get approved for insurance. The path to being insured just may look a little different for someone with a medical condition.
Participating insurance can serve a variety of purposes for both individuals and businesses. For business owners, it may work well as a tax planning vehicle. For individuals, it may serves as a way to provide a modest inheritance to their loved ones after they are gone. Whatever the purpose of the policy, Participating insurance comes with a set of characteristics that offer great value to the policy owner.
Many people may worry as they get older about what will happen if they are no longer able to manage their finances and personal property. It can be a good idea to be proactive in planning ahead for a time when you may need help managing your affairs. One option available to Canadians to address this financial planning concern is appointing a Power of Attorney.
While uncomfortable to think about, effectively planning ahead for when you are no longer here can save your loved ones a great deal of time, money, and emotional hardship. Estate planning can be complicated, but there are some basic “must-do’s” that should be regularly updated and reviewed. Below is a simple checklist for making sure your estate plan is up to date.
Since recent tax changes imposed by the federal government, it has been a topic of debate whether or not trusts hold the same advantages they used to. It is true that from a tax perspective trusts aren’t as advantageous as they used to be, however trusts can still be valuable when planning for unique family situations. In the broadest terms, trusts are used to pass money down through generations in a controlled manner. Many families utilize trusts to control how money is dispersed to certain family members and to ensure their loved ones are taken care of when they are gone.
Probate is the process of getting your will approved by the courts. This process validates your will and allows your executors to distribute your assets. However, probate can often be an expensive and long process. Each province has probate fees which can end up being quite substantial on a big estate. Probate can also cause serious delays in the distribution of assets from the will because once a will is probated it becomes public record. This means that it can be contested and potentially delayed while the courts settle any disputes. The good news is that with proper planning, it is possible to minimize or even eliminate the number of assets that have to go through probate.
Though not something many people want to think about, planning for the death of a spouse or common law partner is an essential part of a financial plan. Unfortunately, many people are shocked when they realize that the survivor benefits that they receive from the government may not be as much as they were expecting. Below is a quick guide to CPP survivor benefits and how much you can expect to receive.