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TFSA

Still not too late to contribute to RRSP for 2016

on Fri, 02/24/2017 - 23:59

I was chatting with a prospect who stated he would do some RRSP in the last meeting and then changed his mind after the paperwork was submitted. He said he made the decision too fast and decided not to put the money in. Welll, the transaction didn't go through, of course. 

So we chatted on the phone and he said he flavors TFSA more than RRSP. I have no specific preference on either, to me, it comes down to what works best and it is only an "account type". Most of the time (between TFSA and RRSP), you have very similar investment choices under the two. 

He mentioned he "wouldn't be taxed

What is the most urgent financial resolution for YOU?

on Tue, 01/05/2016 - 04:19

While the new year just rolled around, most of us would have thought of a "new year resolution". Regardless what is your resolution, improve your finances should be a part of it. Improve - there is always room for improvement :)

No matter where you are financially, you should start/continue to save in TFSAs, since our Liberal government had rolled back our 2016 TFSA contribution room, if you were 19 in 2009 (and had done absolutely nothing on it), you would have accumulated $46,500 TFSA contribution room by now.

The losing party of Liberals' decrease on TFSA contribution

on Tue, 12/08/2015 - 20:41

So, finally, the day came... the Liberals announced the rollback of Tax Free Savings Account's contribution room to $5,500 (from $10,000) in 2016, such a sad thing.

As stated in the Globe & Mail report dated Monday Dec 7th, Darren Coleman, senior vice-president and portfolio manager with Raymond James Ltd, "It’s unfortunate when we are given a tool to provide better investment planning and now it’s being taken back from people who want to work towards having their own financial independence"... I totally agree with him.

I really don't know since when people have this misconception of "TFSAs

What to do to save tax in Canada?

on Mon, 10/05/2015 - 22:55

As a financial advisor, I always have discussion with clients and prospect on cashflow management, tax strategies and saving strategies. Whereas tax strategies seems to be one of the most brought-up issue (knowing that we pay high tax in Canada, this probably not surprising). 

The Canadian taxation system is a gradual system, the more income you earn, the more tax you pay. If you are not sure how much tax you should pay, CRA has listed what percentage how much income should be taxed. If you want to know the exact amount you need to pay based on your income, Ernst & Young has an online

Tax reporting tips

on Thu, 03/27/2014 - 20:22
*Updated 4/5/2017
 
At this point, everybody is busy gathering all their T-slips for tax filing.
 
As mentioned before in this post before, other than waiting for your company to give you your T-slips, you can log into your Service Canada and see if you find anything there.
 
After all these years, I found most people are still not too sure what they are expecting to receive for their tax. I had received quite some inquiries from clients regarding their T-slips.
 
RRSP
- There are NO T-slips on RRSP accounts, do not expect any tax documents on RRSP accounts unless you make changes
-

Year-end financial moves

on Mon, 12/16/2013 - 12:33

I was actually trying to avoid this topic for the longest time, since there are already so many of them out there, I thought my readers would have more than enough information needed regarding what they need to do by the year-end to make sure they get what they need for the 2013 calendar year...

Turns out, still lots of people seems not too sure what is needed and why they need to take these deadlines seriously. Remember, CRA only looks at the date, they won't forgive you simply because you were "not aware" it should be done before the year-end.

So, while we are entering the last 2 weeks of Dec

Classic question: RRSP, RESP or TFSA??

on Sat, 10/05/2013 - 11:35
*Updated: Nov 20, 2016
We all have limited resources... Lots of people asking the same question over and over again, among retirement savings, education saving for kids and tax free savings, which is the better way to save?
 
The answer is: it depends. I know, I know, you hate this answer. However, you need to understand everyone has a different situation so there is not ONE right answer to everybody.
 
Here is a list of things help you to decide which way is best for you:
- if you have lots of RRSP room and have no pension plan from your work place, RRSP might be a good choice;
- if

One stop for your T-slips

on Sun, 03/24/2013 - 11:37

 

April, this is the "taxation month". Everyone is working to get the T-slips together. Have you had an experience that you know how you have been waiting on one more tax slip in order to do your taxes? How does it feel? 
 
Well, many people would like to file their income tax return as soon as they can, not just to beat the rush, but since most of us are being employed, we have usually a tax refund coming back, so we would like to have access to that money sooner than later.
 
So, you know there is one place you can access all your T4-slips, avoiding the wait altogether?

Common questions small business owners have... Some advices

on Sat, 11/12/2011 - 15:12

I have been realizing people who want to start their own businesses always have the same questions, especially after attending the Small Business Summit, that feeling had got even stronger. I will try to share what they are.

The 2011 TD Canada Trust Small Business Survey reports out of the 402 business owners they surveyed across Canada think indicated managing cashflow as the most difficult challenge, with staffing (both retaining and hiring) continuing as a major obstacle.

So how do we address that and keep things under control?

1. Build an emergency fund

- normally 6 months' of

How to resolve a surprised tax bill

on Tue, 09/06/2011 - 11:25

I finally decided I would put clients' cases on my blog, so that you (readers, if there is any) will have an idea how I work with my clients.

So... here is the first case:

Slightly after the new year, I received a call from a clinet who had been working with me for a good 2, 3 years, that he got audited by the CRA, and that he got a surprised tax bill of over $10K. He told me he immediately withdrew $5k from his RRSP and he was looking into getting a personal loan from a bank so that he can pay off the tax man immediately.

This is a very normal move to a lot of people, is that, they will