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Home Financial Health Blog Archive for category "Minimize taxes"

Minimize taxes

Salary or dividends: Which is better for business owners?

All incorporated small business owners eventually must decide how to pay themselves: by salary or dividends. There’s no simple response, so let’s unpack the process to answer that question. Theory of integration No discussion about an incorporated business owner’s compensation can start without introducing the theory of integration. The idea behind that theory is simple:Read More…

 

How to minimize the OAS clawback

Higher-income seniors are often disappointed when their Old Age Security (OAS) benefit gets clawed back. What is OAS? OAS is a taxable monthly social security payment program available to most seniors aged 65 and older. Since the benefit is not based on employment history, it may be available even if a person has never workedRead More…

 

Business Owners: Save up to 30% on health benefits with a Health Spending Account

For incorporated businesses with 1-20 employees, a Health Services Account is more cost effective than a traditional benefit plan. What is an HSA? A Health Services Account allows you to expense all of your medical, health care and dental costs (for you and your employees) through your company.  In 1988 CRA (Canada Revenue Agency) statedRead More…

 

Seven Personal Financial Tips for 2017

Happy New Year!  Here are a few thoughts I’ve put together to help you make your 2017 a great financial year: Hedge your currency bets.  Here’s a great way to make sure you don’t get a shock when you buy U.S dollars.  Say you need $5,000 U.S. for a vacation.  You can set up aRead More…

 

14 powerful financial calculators

These easy-to-use calculators will help you with retirement planning, investing and saving, mortgages and loans, and personal finance. You’ll find  tools that will instantly help you answer questions and make decisions: Retirement Planning RRSP Calculator Calculate how much you will need to save between now and the day you retire. RRSP Illustrator Get a personalizedRead More…

 

Segregated funds can provide market growth with security

“Segregated” or Guaranteed Investment Funds (GIFs) can give you the growth potential of investment funds with the security of insurance guarantees. • Guaranteed death benefit –  Your beneficiaries will receive the greater of market value or 75% or 100% of your net contributions tax free when you die, depending on which you choose.  Ideal forRead More…

 

The Insured Annuity: Maximize your lifetime income and leave a legacy

If you want to get a guaranteed income for life at a rate of return that is significantly higher than GICs, and still leave an inheritance behind when you pass away, then the insured annuity is a strategy you should consider. First let me explain how an annuity works: When you establish an annuity, youRead More…

 

Five ways to reduce the cost of probate in Ontario

Reduce costs, speed up distribution, and simplify estate administration Probate taxes in Ontario are set at $250 for the first $50,000 ($5 for each $1,000, up to $50,000), and at 1.5% of the estate thereafter. This translates into about a $15,000 fee for every $1 million in value of an estate.  Probate calculator. There areRead More…

 

It’s time to make up for lost RRSP saving time

If you find yourself short on cash, or you’ve fallen behind with your RRSP contributions, an RRSP loan at today’s low interest rates can help recoup some lost time and get your retirement savings back on track. At first glance the missed contribution is just dollars and cents. But in the bigger picture there’s alsoRead More…

 

Individual Pension Plans (IPP)

An Individual Pension Plan (IPP) is a registered pension plan (RPP) with defined benefits designed for an individual. An IPP is suitable for business owners age 45 and up with T4 earnings of at least $75,000 for at minimum the last two years, who own at least 10% of their company. Advantages of an IPPRead More…