Personal Finance | Crawford • Ashwood Financial

As your advisor, it is important that I am aware of all the pieces of your financial life. If you are one of the fortunate people who have a pension or Group RRSP through your employer, we must examine just how much this plan will contribute to your retirement income—and whether you can rely on your work pension plan. First, let’s explore the Defined Benefit Plan. If you have one of the old pension plans that have been in existence for decades, it may well be a Defined Benefit Plan. These are often fully funded by the employer, and they…

Not many people like to think about death, and certainly not our own disability or demise. As unappealing as it might be to start planning for this inevitability, it has to be done. The Legal Stuff First, get the legal stuff done. There are many documents you may need to consider, and the good news is that it is likely not as complicated or expensive as you might imagine. A Will Everybody needs a will; however studies show less than half of Canadians actually have a will. A will is there to explain what you want done with your assets…

Most people have a limited income with unlimited ways to spend that income. There are so many current and possible expenditures that pull at us; it is often hard to know which should be our priorities. Let’s take a look at what your options are and which could and possibly should be the most important. Current living expenses include necessities such as food, shelter, warmth, and transportation. It is really important that you live within your means. I can’t stress this enough. If you have more money going out than coming in, then you need to take a hard look…

Earlier this week, the 2015 Federal Budget announced that the Tax Free Savings Account annual contribution limit will be increased from $5,500 to $10,000 per year. The government has said that this change will be effective immediately (and be retroactive to January 1st). What This Means for You If you have not already made a 2015 deposit into your TFSA, you can do so now up to the new maximum of $10,000 (if you have not maximized previous years contributions you may actually have more room). If you have already made a contribution of $5,500 this year, you can add…

Some experts say that new parents spend $10,000 during their first year in parenthood. You knew having kids wasn’t cheap, but that’s a lot of money on top of your regular living expenses. You would need to come up with $250 a week for nine months to save that amount of money ahead of the baby’s arrival. That’s around $1000 a month! The key is to start early. Start early. If you are planning on starting a family soon, and have a couple of years to build up the resources required, you might need only $96 a week. A Tax…

Debt is a passionate topic to me. Why? Because a poor understanding and use of debt can determine the financial success or failure of an individual and a family. Debt can be insidious. It can creep up on you gradually until you find that you owe an unmanageable amount of it. Low interest rates have not helped. Nor has rapidly rising house prices which have allowed lines of credit to grow along with the house values. In my opinion, lenders also have a lot to answer for. They have a way of making you feel happy when they solve your…

You suddenly receive tens or even hundreds of thousands of dollars. It is a scenario that many people secretly wish for, and for an increasing number of people (especially baby boomers) it is becoming a reality as their parents—now in their eighties and nineties—are inevitably dying, leaving their heirs sizable inheritances. Unlike boomers (many of whom love to spend their money), their parents were much more likely to be savers than spenders. This ‘saving’ mentality is what is providing many boomers with inheritances of significant value. Handled correctly, these gifts from parents to adult children can be life changing. Handled…

The Registered Education Savings Plan (RESP) is a tax-sheltered plan that can help you save for a child’s post-secondary education. We all know that education costs are raising every year, and many parents, grandparents and other family members recognize the need to save long before the money is required. The major benefit to the RESP is the government grants that assist you to grow the account more quickly. Free money from the government, you say? Why wouldn’t you take advantage of that? Canadian Education Savings Grant (CESG) For an eligible beneficiary under the age of 18, the government matches 20%…

Let’s start with the Tax Free Savings Account (or TFSA). A lot of clients we talk to seem to have the misconception that you get a TFSA at a bank, and make a percent or two in a high interest savings account (if you’re lucky). The fact of the matter is that a TFSA is just another vessel to invest your money, just like an RRSP. Think of it as another hat to put mutual funds, stocks, bonds, and high interest savings accounts into. A TFSA seems to be advertised as a short term or emergency savings vessel, but that…

So you’ve just accepted an offer for a new job, or received a nice promotion. Congratulations! With extra money coming in, it’s important to know how to take care of it properly. What are your goals? Does this extra income put you in a good spot to check something off your list? Maybe it’s finally moving out of your parents’ house, and getting your own place. Maybe it’s buying a new car, or maybe it’s saving for something special, or maybe, just maybe, you actually want to start putting more into your long term savings plan. The first course of…

Category Archives: Personal Finance

What Kind Of Pension Plan Do I Have? – Part One

Estate Planning

Financial Priorities

Save More for Later

Staying home with baby?

Understanding Debt

How to Plan for an Inheritance

Education Savings

TFSA vs. RRSP

A New Job