Facebook Twitter Gplus LinkedIn YouTube
416.230.2703 | 705.798.0062
tim@timweichel.ca
magnify
Home Financial Health Blog Archive for category "Minimize taxes" (Page 2)

Minimize taxes

Guide to retiring rich

Most people can retire rich if they really make a personal commitment to doing so.  It’s sort of like sticking to a diet.  Four characteristics go into successfully taking action on your personal finances and then sticking to a commitment to retire rich: Numeracy, education, motivation, and self-control according to Lewis Mandell, Ph.D and EmeritusRead More…

 

Freedom to choose …the journey to financial independence

You’ve likely seen some of the retirement clichés over the years – sailing a yacht into the sunset; climbing the tallest mountains around the world; swinging like a pro in plaid on the golf course. But, are these scenarios really for you? Let’s talk about the lifestyle you really want Creating the lifestyle you reallyRead More…

 

Life-Long Learner: Use your RRSP to pay for your education…

The Canada Revenue Agency encourages continuing your education via the Lifelong Learning Plan, or LLP.  Under this program you may make a tax-free withdrawal from your RRSP when you are entering an educational program as a full¬time student for at least three consecutive months in a given year. The Lifelong Learning Plan allows you toRead More…

 

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…

 

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…

 

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 to deduct expenses and save taxes – even if you’re an employee

Employees don’t seem to get any breaks. When it comes to tax, you’re very limited in the expenses you can deduct when calculating the tax you owe to the Canada Revenue Agency (CRA). Self-employed individuals have much more flexibility; they can basically deduct any reasonable expense incurred to earn income from their business. But ifRead More…

 

How spousal RRSPs can minimize your taxes

Spousal Registered Retirement Savings Plans are an important tax-planning tool. An RRSP is designated as spousal when one spouse contributes to a plan in the other spouse’s name. Spousal RRSPs will appeal to couples where one spouse earns a higher income than the other spouse, and is therefore in a higher tax rate bracket. ByRead More…