We all know that governments throughout the developed world are taking more and more of our earnings in the form of taxes of various sorts. In Canada we do live a good quality of life, and the taxes we pay help to make our country one of the best to live in. However, we don’t need to give them more than is necessary. There are not a lot of ways to save taxes, but we do still have a few to draw on. Here is a brief summary of some strategies that are available. RRSPs – this is an obvious…
Our new government has kept their promise to reduce the Tax Free Savings Account (TFSA) limit back down to $5,500 per year. But don’t worry; you aren’t losing any contribution room that has already accumulated. Anyone opening a brand new account today would have a limit of $41,000, and that will rise by another $5,500 on January 1st, 2016. So, new accounts or maximums for previously opened accounts will be $46,500 in the New Year. We recommend you check with your accountant or tax preparer, or log into your CRA My Account online, to ensure you don’t over contribute if…
As taxpayers we are all well aware that our government and Canada Revenue Agency are always looking for ways to collect more tax dollars from us. This year, 2015, will be the last year that tax sheltering using Universal Life insurance will be possible. For years, wealthy clients have used these policies to combine their needs for life insurance to pay the inevitable estate taxes that will be due at death, and shelter additional investments from ongoing taxation at the same time. These structures are not just for the wealthy however – they may (or may not) be appropriate for…
Part of our commitment to your financial well-being, is to look at all the aspects of your financial life (and more), and develop a single, comprehensive and strategic plan. If it has been a while since we reviewed your complete purpose, intentions, values, and goals; it’s time to set up a meeting to get on track. Many of our clients have been surprised to learn of all of the different things we can do. Along with managing your investments, we can assist in ensuring you have adequate protection in the event of your death, or if you fall ill or…
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…