Think of an RRSP (Registered Retirement Savings Plan) as an oak barrel. Into an oak barrel you can put a variety of lovely liquids. Red wine, white wine, and scotch are my favorites, but oak barrels will hold almost any liquid. An RRSP is similar. It’s a tax shelter, created by the government, into which [...]
If you understand only one thing about your taxes, understand your marginal tax rate. I talk a lot about marginal tax rates in my book, in articles, and on videos. Your marginal tax rate is the most important tax figure for you to understand – and memorize. You can’t do proper tax planning or investment [...]
I think the most overlooked and underrated strategy for funding retirement is the Systematic Withdrawal Plan (SWP). If done right, a SWP is an excellent tax planning tool and can provide loads of tax efficient cash flow. Not only is a SWP a great way to slash your retirement tax bill, but it can help [...]
If you haven’t looked into flow through shares for tax savings, you should. They can be a good way of saving taxes if they’re used right.
Some people think that flow through shares are complicated and risky. This is only true if you don’t know what you’re doing. They are, however, a great way to save [...]
Here’s a question for you. If you were retiring tomorrow, what would you rather have: $1 million in your RRSP, or $1 million in your non-registered account?
Hopefully you picked the $1 million in your non-registered account.
Ideally, when you retire you want all of your money to be non-RRSP money. Every dollar you take out [...]
I don’t applaud the government very often when they change the tax rules, but this change deserves a round of applause. Since 2007, retirees have been allowed to split up to 50% of eligible pension income with a spouse. Will this help every retired couple? No. However, for those couples that are at different marginal [...]
When the government comes looking for installment payments, what are you going to do? Did you know you had options on how to deal with their request?
If you are retired or self-employed, you are likely subject to installment payments. In general, if you owe more than $3,000 of tax this year, Canada Revenue will ask [...]
You should claim the total medical expenses you and your spouse have on one tax return. Use the tax return of the spouse with the lesser income (unless that spouse has no income at all). The government will allow only medical expenses that exceed 3% of your net income. The higher your income the less [...]
Whether you are building a new back deck or a financial plan, you will need tools to do the job properly. If you have the right tools and know how to use them, you can defend yourself against lousy advice and misleading information.
The most important tool – knowledge.
The fact that you are reading [...]
Way back in 1952, the Canadian government started giving out Old Age Security payments. When it began, the OAS system gave everyone 70 and older $40 per month.
Now everyone who is 65 and older and who meets certain residency requirements, is entitled to OAS. The maximum OAS paid for 2009 is $6,203.52. Old Age Security [...]