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Home Archive for category "Financial Health Blog" (Page 7)

Financial Health Blog

Should you take early CPP retirement benefits?

Before talking about the financial implications of taking your Canada Pension Plan benefits early, you should know that if you pass away before you elect to take your CPP benefit, your spouse will not be entitled to the survivor’s benefit.  And if you have a pressing financial need to take CPP early, then you mayRead More…

 

Divide and conquer: An income splitting strategy that could save you thousands

CRA sets prescribed loan rate at 1% The current low interest rate environment has created a simple income-splitting opportunity that could save you thousands of tax dollars – and provide a better way for you to fund your family’s aspirations. Like education, travel, business investment etc. Here’s how it works: A high income earning individual,Read More…

 

Canada Debt Survey: Homeowners indicate more comfort with debt than parents

Highlights: Homeowners in their fifties are almost five times as likely to say they are more comfortable with debt than their parents. Those whose parents taught them a lot about debt management are twice as likely to report their debt is in good or great shape Eight in 10 homeowners indicate being or becoming debt-freeRead More…

 

Strategies to reduce impact of the OAS clawback

Old Age Security (OAS) benefits are available to anyone in Canada 65 years of age and older as long as they meet specific residence requirements. You do not need to be retired and employment history is not a factor when determining eligibility. The Old Age Security program is financed from Government of Canada general taxRead More…

 

Top 5 reasons why people do not want to bother with Estate Planning

Why don’t people bother with Estate Planning? They are never going to die They love the Canada Revenue Agency They don’t like dealing with professionals They would like other people to argue over their possessions They love the courts getting involved What is Estate Planning? Integrating financial planning into the death scenario to achieve… TheRead More…

 

CBC Marketplace on the perils of mortgage insurance

This CBC Marketplace segment explains how the banks push to get you to sign up for mortgage insurance with unclear questions that may leave you without the coverage that you thought you had.  It cites examples of people who became ill or passed away and whose benefit claims were denied by the insurance company.  WithRead More…

 

Why do you need a will?

Hearing that you ought to update your will is a little bit like being told to take up jogging. Everybody knows it’s the right thing to do, but that doesn’t make it any easier to get started. Douglas Gray has made it his mission to do exactly that. The former lawyer left his practice atRead More…

 

Dollar cost averaging or investing a lump sum all at once: which performs better?

What is dollar-cost averaging? Dollar-cost averaging (DCA) — buying a set dollar amount of a security at regular intervals — can help promote disciplined investing. It is a form of paying yourself first. While you’re building your wealth, the rate of saving is generally more important than the rate of return. By committing yourself toRead More…

 

What is the Pension Income Tax Credit?

The Pension Income Tax credit is available to you if you are 55 years of age or older. Basically, it enables you to deduct, from taxes payable, a tax credit equal to the lesser of your pension income or $2,000.00. Depending on which province you live in, this equates to $440-$720 in actual tax savingsRead More…

 

How much can you expect in CPP and OAS?

Fewer Canadians will contribute to their Registered Retirement Savings Plans this year (or plan or save for retirement at all). A Scotiabank survey finds that just 31 per cent of Canadians plan to contribute this year, compared with 39 per cent last year. Canadian households spend about $1.65 for every dollar earned, according to StatisticsRead More…