TFSA Notices And Penalty Risks
Posted on:The latest Federal Budget included an administrative rule change1 that allows CRA to automatically send you notices electronically without your prior permission or registration. The risk, as noted in the recent case of a B.C. taxpayer, is this may lead to penalties for TFSA over contributions. It is your responsibility now to regularly check your CRA My Account site. Let me explain. This change…
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Be Careful with RRSP Beneficiary Designations
Posted on:When Margaret and James married in 2005, it was a second marriage for both of them. They had no children, so when they did their financial planning, their wills were clear that 100% of their estates would go to the other. Believing this was sufficient protection, they built a life and continued to grow their wealth. Sadly, Margaret's sudden passing in 2019 exposed a serious hole in their estate…
Read MoreHow to Pay Less Tax With Life Insurance
Posted on:Ray had thought of his life insurance purely as a protection plan. The anti-avoidance rules and general restriction of tax benefits applicable to most shelters prompted him to take a new look at his life insurance for tax deferral as well. A type of policy, called Universal Life, separates the cost of insurance and the 'savings' element of your premium. You know how much of it is being invested…
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When Investment Returns Matter
Posted on:The goal of financial planning is to build enough assets, by the time you retire, that the income earned from investments (including pensions etc.) will provide you with your desired lifestyle, without the need to get out of bed and go to work. Simple, right? All other discussions relate to the strategies you can use to build your wealth to the point of Financial Independence or beyond. For…
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Mortgage Insurance: Not Necessarily as Advertised
Posted on:It's all part of the process when you are arranging a mortgage for your new home. The bank employee inevitably asks if you would like to purchase mortgage insurance. No one likes to think about their own mortality; however, we all know deep down that stuff happens. People contract terminal illnesses or suffer debilitating or fatal accidents. Knowing that your loved ones will be taken care of can…
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