Tag Archives: rrsp

RRSP vs RESP: How to Make the Right Choice?

By Bruce Q. Thompson, B.Admin, CFP®

Family in kitchen with laptop smiling

From the moment our children are born we want the best for their future. Success is never guaranteed, but we hope to be able to offer them opportunities. And what better opportunity is there than education? So it seems like a straight forward assumption that we would contribute to a Registered Education Savings Plan (RESP).

But what about our own future? What about contributing to a Registered Retirement Savings Plan (RRSP)? Canadians are living longer, and the cost of living is always on the rise. If we don’t have a solid retirement plan, are we at risk of living in our well educated child’s basement? OK, that may be a tongue-in-cheek option, but the question of where to place our investment dollars is valid. What’s a parent to do?

The Fundamentals: What You Need to Know

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CPP Expansion: A Rare Opportunity to Fine Tune Your Retirement Plan

By Sandra Mann, MBA Financial Services, CPA, CGA, FPSC Level 1™

I’m sure you’ve heard by now that the Canada Pension Plan (CPP) is set for expansion beginning in 2019, but you may be wondering how the changes will impact how you manage your money today as well as how it will affect your retirement.

Hand Inserting Coin In Pink Piggybank

The changing face of work in Canada

When CPP was introduced in 1965, it was meant to be supplemental retirement income to bolster workplace pensions and personal retirement savings and investments. That intention hasn’t changed. What has changed is the Canadian “workscape.”

Working 30 years for the same company is not likely (or even desirable) for many people at the start of their careers. Climbing one corporate ladder is less common than seeking new opportunities at different companies. (I myself left a traditional financial services position for the fresh challenge offered by Money Coaches Canada and the Women’s Financial Learning Centre). Many Canadians change careers completely, some go back to school or start their own businesses. There is no defined path. Even those who decide to build a dedicated career with one employer are not immune to lay-offs and decreasing pensions. Continue reading →

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5 tax filing tips to save you time and money

By Leslie Gardner, FPSC Level 1® Certificant in Financial Planning

Save Time and Money at Tax Time

If the thought of tax season makes you squirm, you’re not alone. But being prepared, filing on time and knowing what you can deduct will help you get the job done with more left over in your pocket.

This year’s income tax filing deadline is still April 30th, but because it falls on a Saturday Canada Revenue Agency (CRA) will consider you have filed on time up until midnight May 2nd. If you’re self-employed you have until June 15th to file, but any amounts owing are due by May 2nd.

While a couple of months would seem like plenty of time, the natural tendency to put off unpleasant tasks can leave you in a last minute scramble to find receipts for children’s activities, medical expenses or other deductible expenses. A lot of tax time stress comes from a time crunch that is avoidable.

If you break the process down into manageable chunks, when it comes time to deliver your documents to your accountant or sit down to file from your computer, you will feel calmer and more organized.

Here are 5 tax filing tips to save you time and money: Continue reading →

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Will you contribute to an RSP this year?

faded bigger March Calendar

Many of us grew up with the tried and true advice from our parents that we should invest in RSPs, and like a lot of parental advice, it is often ignored. Less than one in three eligible Canadians take advantage of this investment according to StatsCan.

It’s not that people don’t think about the future. It’s often a case of being overwhelmed by information and unsure how to sort it out. Would they be better off with a Tax Free Savings Account (TFSA)? Should they focus on debt repayment instead of retirement savings? Should they borrow to invest?

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