Reducing Taxes – Smart RRSP Contribution

A dreamy night sky background with the text Save taxes and invest in your future? Your RRSP can do that

In 2017 my boyfriend and I bought a house. In order to make the down payment I sold most of my stocks and index funds and have a resulting capital gain. While obviously this is a great problem to have I don’t want to pay tax on it come April 2017 so I will make an offsetting RRSP contribution.
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Saving for a Sunny Day – Registered Retirement Savings Plan (RRSP)

A picture of a palm tree on an island

The news has been full of the changing patterns of retirement given increasing life expectancy. Now with life expectancy well over 80, people need to plan for 20-30 years of retirement. This requires significant savings – a great first step is an RRSP. Essentially you get a tax credit for putting money away for your retirement. For most people you can contribute 18% of your salary to a maximum of $26,010.
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Everyone Needs a TFSA

The letters T F S A - how else would you draw that one?

What is a TFSA?
It is a Tax Free Savings Account – in other words it is an investment account that doesn’t have taxes charged on the gains (the money you make). This means any investment income made above the original sum is yours – rather than yours and the tax man’s. Each year you can contribute $5,500 and part or the whole amount can be taken out at anytime so it is an exceptionally flexible savings account.
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