Retirement Planning

5 Ways to Avoid Capital Gains Tax

Capital Gains tax occurs when you sell capital property for more than you paid for it. In Canada, you are only taxed on 50% of your capital gain. For example, if you bought an investment for $25,000 and sold it for $75,000 you would have a capital gain of $50,000.   You would then be taxed on 50% of the gain. In this instance, you would pay tax on $25,000.   In Canada, there are some legitimate ways to avoid paying this tax:  Tax shelters, Lifetime Capital Gains Exemption, Capital Losses, Deferring, and Charitable Giving.

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Why Living Benefits Are the Foundation of Your Financial Tool Kit

Imagine you woke up today and could no longer go to work – Would you be able to pay your bills? What if you are diagnosed with cancer and must travel for treatments? Could you afford to lose your income and pay for healthcare expenses?

For most Canadians, the answer is no. A survey conducted by RBC found that 50% of Canadians could not afford to take time off work if needed. Luckily, there is a solution available.

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How To Protect Your Assets Against Inflation

Ever feel like your money is not going as far as it used to?   Do not worry, you are not imagining it.  You can blame inflation.   Inflation is the rising price of goods and services over time.  This rise impacts your purchasing power. Though it can be discouraging to think that inflation is eating away at the value of your assets, economists consider a small amount of inflation indicative of a healthy economy.  Inflation encourages consumer spending and corporate productivity.

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Converting an RRSP to a RRIF 2021

If you are nearing retirement, you may be starting to think about creating retirement income for yourself from your RRSPs.  Registered Retirement Savings Plans (RRSPs) are considered accumulation vehicles.   This means they are used to save for your retirement in a tax efficient way.  When the time comes to start using your hard-earned savings to fund your retirement, you may want to consider moving them to a payout vehicle called a Registered Retirement Income Fund (RRIF). 

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What Happens If You Overcontribute to Your TFSA?

The amount deposited into a Tax Free Savings Account (TFSA) is subject to a yearly contribution limit. For 2020, and again in 2021, the annual limit has been set at $6,000. As of 2021 the lifetime maximum contribution has grown to $75,500.
If an over-contribution is made Canada Revenue Agency will levy penalties.

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What Is Your Financial Independence Number?

Every investor wants to know the answer to the question, “How much money will I need to retire?” Many factors contribute to this determination and it is unique for everyone. For example, someone who earns $70,000 per year will likely be able to live comfortably on $60,000 per year in retirement, but another person who makes $200,000 each year will likely not find that income level realistic. There is a simple way to discover the amount of retirement income you and your family will require, and it is called the Financial Independence Number.

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What to Consider When Drawing Down Your RRSP

If you have been a good saver and contributed religiously to your RRSP, you should be rewarded with a sizeable six or seven figure RRSP that would make your retirement that much more enjoyable. The only issue now is – how do you get the money out of the RRSP without paying more tax than you should? Typically, it is advised that investors leave their RRSPs alone for as long as possible to take advantage of the tax-free growth. While this can be true for many people, it is important to crunch the numbers before you retire to make sure this makes the most sense for your unique retirement situation. Many retirees, especially those with a high net worth, may find there could be a more efficient way to withdraw retirement income.

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5 Ways to Ensure That You Reach Your Retirement Goals

Retirement is an inevitable stage of a person’s life. That is the time when you eat the proverbial fruit of your labor. However, you cannot enjoy your retirement if you have not adequately planned for it when you were active. There are numerous retirement plans you can subscribe to, whether you are a civil servant or you work for a private company.

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A Step-by-Step Guide to Conducting a Life Insurance Audit

Many people tend to neglect the insurance part of their portfolio, but it is one of the most important tools you can have as a part of a financial plan. Just like your investments or other assets it should be reviewed regularly to ensure it is still protecting you in the ways that you need it to. The steps below will help you get started on your own life insurance audit.

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3 Essential Considerations for Women Who Are Planning for Retirement

Retirement Planning is not the same for both women and men. Women face unique hurdles and risks that do not affect their male counterparts. These risks include outliving their money, earning less but having more financial obligation, and aversion to take risks with their money.

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