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… and the contribution limit just rose to $6,000. It’s the perfect time to take a fresh look at the features of this tax-efficient investment vehicle that Canadians are using more than ever. Are you familiar with the Individual Pension Plan? For owners of SMBs, an individual pension plan can be a way of maximizing retirement capital while providing advantages similar to those of a defined benefit pension plan. Pictures worth a thousand words Choosing an executor for your estate When you are writing your will, one of the most important decisions you have to make is who to name as your executor. Here are a few key considerations. In Canada, no fewer than 22 million people have life insurance. What is the average value of this insurance per household? In each issue of Actualis, we dig up a few nuggets, online or elsewhere, that can provide a deeper understanding of the financial and economic times we’re living through.
Objective 2020: Optimizing your tax bill Many companies have developed a “Horizon 2020” plan for achieving various financial, tax or operational goals. But individuals, too, can start now to consider decisions that will have an impact on their personal finances next year… and beyond. Overview. Among the many tax reform components affecting the owners of small- and medium-sized businesses as of January 1, the one associated with passive income is especially important. Pictures worth a thousand words Ideas to consider for your retirement plan It is becoming increasingly evident that even with a well-designed financial plan and adequate capital, some aspects of retirement can take us by surprise. An infographic overview of the bright side… and the dark side of retirement. There are five tax brackets in Canada, with the highest one applying to individuals who declare personal income of over $200,000. Based on the latest figures from Statistics Canada, how many taxpayers are included in this bracket? In each issue of Actualis, we dig up a few nuggets, online or elsewhere, that can provide a deeper understanding of the financial and economic times we’re living through.
Morneau’s fourth budget: 8 points worth noting A budget in the spring, an election in the fall… Political analysts were asking themselves a lot of questions before the latest federal budget was tabled. Now the answers are here. A first budget for the new government On March 21, Quebec’s Finance Minister tabled the first budget for the CAQ government. Expectations were plentiful, especially with regard to the use of the significant budget surplus that was anticipated.
Taxes in 2018: plan now, reap the rewards in a year Tax season is around the corner, bringing a reminder of how important it is to manage our affairs with tax reduction in mind. Here are a few practical pointers. A portfolio that reflects your reality What can you do to make your investment portfolio meet your objectives as accurately as possible? Here are a few basic concepts. Pictures worth a thousand words Five factors to consider for maintaining your standard of living in retirement No matter how much capital we’ve built up and what sources of revenue we have, the question still stands: will it be enough for us to maintain the same standard of living throughout retirement? At the start of this year, on January 2, the Canadian dollar was trading at about US$0.799. What is the highest exchange rate ever recorded for our currency? In each issue of Actualis, we dig up a few nuggets, online or elsewhere, that can provide a deeper understanding of the financial and economic times we’re living through.
10 major ideas from the Morneau budget This year, the federal Finance Minister tabled his budget in February, after getting us accustomed to seeing budgets in the early days of spring. What does this winter edition have in store for us?
QUEBEC On Tuesday, Quebec’s Finance Minister tabled what will be his last budget before the next general election. As expected, budgetary surpluses are featured – as well as expenditures.
Philanthropy: an important part of an integrated financial plan Overview of the main concepts to consider when developing a strategy for planned giving. Inheriting a secondary home? Some planning may be required When someone leaves you a cottage or vacation home, you’re inheriting something with sentimental and financial value that also has tax ramifications. It’s the kind of gift that can raise unexpected challenges. Pictures worth a thousand words Ensuring a smooth business transfer Five things that could tip the scales towards success. A recent survey has shown that hiding important financial decisions from your romantic partner can be bad for your relationship, your health and, of course, your household finances. According to the same survey, what percentage of Canadians admit having lied to their partner about financial decisions? In each issue of Actualis, we dig up a few nuggets, online or elsewhere, that can provide a deeper understanding of the financial and economic times we’re living through.
Portfolios of funds at a glance Portfolios of mutual funds, or “funds of funds,” are growing in popularity across Canada. Why have we taken such a shine to these investments? Here are some possible strategies for investors who have maxed out their RRSP and TFSA contribution room. Pictures worth a thousand words Retirement savings withdrawal strategies When you retire, you move from a stage of life where you are accumulating assets to a stage where you are drawing on them. Canada’s debt clock is still ticking. In your opinion, how much debt were we carrying for each dollar of disposable income as of December 31, 2017? In each issue of Actualis, we dig up a few nuggets, online or elsewhere, that can provide a deeper understanding of the financial and economic times we’re living through.
Stepfamilies can produce some unanticipated situations when it comes to deciding who gets what slice of the financial pie. Talking about money with your kids As a household’s net worth increases, a question comes to the fore: how open should we be with our kids when it comes to discussing money issues? There are more millionaires in the United States than in any other country in the world. But which country has the most millionaires as a percentage of the total population? In each issue of Actualis, we dig up a few nuggets, online or elsewhere, that can provide a deeper understanding of the financial and economic times we’re living through.
How are your assets protected beyond $100,000? Deposit insurance is familiar to many, yet it is often misunderstood. Here is a brief review of the kind of coverage available to protect your assets as they grow. What’s the purpose of a holding company? Many business owners structure their activities around a holding company. What’s that, and what are the advantages of this approach? Pictures worth a thousand words Life insurance and estate planning Learn a few strategies for protecting your estate and simplifying the transfer of wealth. The Toronto Stock Exchange’s S&P/TSX index covers 11 economic sectors, each of which is given a specific weight within the index as a whole. Which sector has the highest weight? In each issue of Actualis, we dig up a few nuggets, online or elsewhere, that can provide a deeper understanding of the financial and economic times we’re living through.
Should we be concerned about the effect of interest rates on our investments? When interest rates are rising, the first question that comes to mind usually concerns the cost of borrowing. But can increasing rates also affect our investments? Power of attorney: necessary, but not necessarily enough A power of attorney could be essential for ensuring that your wishes are respected, but it might not be all you need. Pictures worth a thousand words A brief visual reminder of what indices are and how they are useful. It’s been 10 years since 2008, a year that left painful memories for many people who suffered as a result of the global financial crisis. Fortunately, markets have recovered since then. Using the S&P 500 in mid-year as a reference, how much have equity investments rebounded since their low level of a decade ago? In each issue of Actualis, we dig up a few nuggets, online or elsewhere, that can provide a deeper understanding of the financial and economic times we’re living through.
What happens after the stock market drops? October 2018 ran true to form by ending with a pronounced drop in the major stock market indices. In this article, we try to determine if history can teach us anything about this type of episode. Do we really understand the full power of compound returns? Here is a quick reminder of how compounding works and its great potential for wealth creation. Pictures worth a thousand words Find out what portfolio rebalancing is and why you might want to discuss it with your mutual fund representative from time to time. As the month of October has just reminded us, a one-month decline in the stock market is not the same as a recession. Which leads to the question: What is a recession, exactly? In each issue of Actualis, we dig up a few nuggets, online or elsewhere, that can provide a deeper understanding of the financial and economic times we’re living through.
December 31 is just around the corner, but it might not be too late to take some steps that could make a noticeable difference when come tax time. With that in mind, here are 8 important year-end reminders. In this year-end issue, we offer you a selection of 10 articles, videos and infographics that appeared in Actualis during 2018. Here’s your chance to read any that you might have missed.
Do you donate just from the heart? What if it were more profitable, for both you and the cause you want to support, to make some careful calculations before you give? “Can we get a puppy... pleeease?” It’s fun to add a four-legged member to the family… But how much does it end up costing? Pictures worth a thousand words How to plan your financial future? The future is difficult or even impossible to predict. So what about the future of your personal finances? Paying off your credit card balance every month can save you a lot of money! In your opinion, how many Canadian households have adopted this excellent habit? In each issue of Actualis, we dig up a few nuggets, online or elsewhere, that can provide a deeper understanding of the financial and economic times we’re living through.
Staying in the work force after reaching retirement age could be good for your health… not to mention your financial health. Money is something that people would often rather not talk about within couples and families. In this St. Valentine’s month, how about if we break that taboo? Pictures worth a thousand words Does pinching pennies really work? Yes! And it could be easier than you think. For several years now, Canada has enjoyed exceptionally low interest rates. However, in which year do you think the Bank of Canada’s key lending rate was at its highest? In each issue of Actualis, we dig up a few nuggets, online or elsewhere, that can provide a deeper understanding of the financial and economic times we’re living through.
Another March 22, another budget! The federal Finance Minister tabled his second budget last Wednesday, a year to the day after presenting his first one. Quebec’s Minister of Finance tabled his fourth budget before the National Assembly last Tuesday. Setting the tone: a budget surplus.
Critical illness and the piggy bank A study shows that the financial impact of a critical illness can be devastating, not only for the victim but for the entire household as well. And the repercussions can last a long time. Do you feel overwhelmed by piles of documents that you’re saving “just in case”? You’re probably not alone. And really, why are we hanging onto all that paperwork? Pictures worth a thousand words When it comes to personal finances, how much is advice worth? Did you know? Households that use the services of an advisor for their financial decisions have, on average, twice as many assets, double the savings rate and a more optimistic view of the future. Boy, do we ever complain when prices go up at the gas station or the grocery store! On top of that, did your taxes or rent increase this year? Incidentally, which Canadian city do you think has the lowest cost of living? The best of the Web… and elsewhere In each issue of Actualis, we dig up a few nuggets, online or elsewhere, that can provide a deeper understanding of the financial and economic times we’re living through.
Paycheque to paycheque: a survival guide Close to half of Canadians spend their whole paycheque and wait impatiently for the next one. How can anyone save in this situation? A low-cost vacation this year? Camping is definitely an affordable way to see the country… as long as you take certain precautions. Pictures worth a thousand words Self-employed workers: a handy guide Quick comparative overview of self-employment versus paid employment. May 8 to 14 was National Mining Week in Canada. Speaking of ore: which of these metals is worth the most by weight? In each issue of Actualis, we dig up a few nuggets, online or elsewhere, that can provide a deeper understanding of the financial and economic times we’re living through.
Five financial homework assignments for this summer Nobody really feels like talking about money at this time of year. But now may be when you have the most free time to think about things with a clear head and take care of some business. Here are a few suggestions for a little summer homework.
Grandparent… or family financier? For grandparents, there can be more than one way to give offspring a helping hand. One of these might even far outlast the grandparents themselves. Understanding your personal rate of return There are different ways of calculating the performance of a mutual fund.* Are you familiar with them? Pictures worth a thousand words Periodic Savings, how does it work? Financial markets can be volatile and in the short term, it’s difficult to predict the right time to buy or sell your mutual funds. However, there is a good strategy to be less exposed to market fluctuations: periodic savings! Retirement prompts many questions: How much should you save? What age should you retire? How fast should you go through your savings? Here’s another one, right out of left field: Which Canadian city is the best place to live if you’re retired? In each issue of Actualis, we dig up a few nuggets, online or elsewhere, that can provide a deeper understanding of the financial and economic times we’re living through.
What is responsible investment? The concept of responsible investment has evolved substantially in recent years, and has now moved far beyond what used to be known as “ethical” funds*. A five-point overview. After we die, what happens to the assets we have accumulated during our lives? To get some idea, here are a few basic concepts in estate planning. Pictures worth a thousand words Every age has its financial priority As we progress through each of life’s stages, our financial priorities undergo a considerable amount of change. This infographic provides a few handy pointers to help organize these priorities based on the stage of life you have reached. In 2017, is the typical Canadian household still made up of a mother, a father, and their children? In your opinion, which of the following households is in the majority in Canada? In each issue of Actualis, we dig up a few nuggets, online or elsewhere, that can provide a deeper understanding of the financial and economic times we’re living through.
When it comes to personal finance, December is a very special month: it’s our last chance to make decisions that may have an impact on our next income tax returns. Here are 8 important reminders. Pictures worth a thousand words Life expectancy has increased significantly in recent decades. Unfortunately, with age, the risk of needing care on a daily basis also increases. Purchasing long-term care insurance is a simple gesture that can make a big difference. In this year-end issue, we offer you a selection of 10 articles, videos and infographics that appeared in Actualis during 2017. Here’s your chance to read any that you might have missed.
After the holiday bells come the holiday bills… and an opportunity to ponder that age-old question: can you buy happiness? As luck would have it, researchers have been studying that very thing. … the resolutions! What do statistics tell us about our good intentions and the priorities we set at the beginning of each year? Pictures worth a thousand words The five cardinal sins of investing A few practical reminders to get you started on the right foot in 2016. In each issue of Actualis, we dig up a few nuggets, online or elsewhere, that can provide a deeper understanding of the financial and economic times we’re living through.
With Valentine’s Day being celebrated this month, let’s go all out and attempt to answer a thorny question: is it more expensive to live alone or as a couple? You dream of flying off to the sun and sand… but the loonie is dropping like a rock instead of taking off. Is it still possible to get away from it all when the dollar is in a tailspin? Pictures worth a thousand words Did you know that, when it comes to taxes, not all forms of income are equal? Which currencies has the Canadian dollar gained against since 2003? In each issue of Actualis, we dig up a few nuggets, online or elsewhere, that can provide a deeper understanding of the financial and economic times we’re living through.
New government, new priorities With its anticipated deficit of $29.4 billion, the first Morneau budget moves decisively away from the targets of previous governments. But the differences don’t end there. QUEBEC Last Thursday was budget day in Quebec City! On the agenda for individuals: a certain number of new measures, and several amendments to measures introduced in 2015. Here’s an overview.
Looking for a mortgage any time soon? Here’s everything you need to know before you book that meeting with your mortgage lender. Pictures worth a thousand words Five dollars for a head of celery? It seems as if some common foods now cost an arm and a leg. What’s up with that? In the budget tabled this past March, the federal government announced the introduction of the Canada Child Benefit (CCB). If you were already receiving the Universal Child Care Benefit (UCCB), what do you have to do to receive the CCB? In each issue of Actualis, we dig up a few nuggets, online or elsewhere, that can provide a deeper understanding of the financial and economic times we’re living through.
Empty the attic… and fill your pockets? Garage-sale season has officially started! But is buying or selling second-hand items really worth it? When the kids are preparing to jump feet first into summer fun, how can parents keep them safe – without worrying too much? Pictures worth a thousand words What is living benefit insurance? When you purchase a life insurance policy, you are doing something important about taking care of others. You made it! You’ve turned 65 and now you can claim your Old Age Security pension. Which of the following situations could prevent you from receiving the full amount? In each issue of Actualis, we dig up a few nuggets, online or elsewhere, that can provide a deeper understanding of the financial and economic times we’re living through.
10 tasks for future entrepreneurs Selling lemonade, delivering newspapers, mowing neighbourhood lawns… Most of us have been entrepreneurs at least one summer in our lives. If you still cherish the dream of running your own business, read this—perhaps while sipping a cold drink sold by the kids next door!
Finding the means to fund the dreams The proud athletes who will represent Canada at the Olympic Games will have spent at least 10 years achieving excellence. That often means more than 10,000 hours of unpaid training. How do they manage financially? An increasing number of people, especially in the younger generations, are deciding not to have a car. No wonder… Pictures worth a thousand words Getting a first apartment: quite an adventure! Stay in control with a little planning. Let’s see how well you know your banks… In your opinion, how does the World Economic Forum rank Canada’s banking system in terms of stability and general health? In each issue of Actualis, we dig up a few nuggets, online or elsewhere, that can provide a deeper understanding of the financial and economic times we’re living through.
QUEBEC What happens to your music files, e-books or TV series if your computer is stolen? Are they covered by your insurance? And can you leave them to someone when you die? Good questions! Work or stay home with the kids? When a parent decides to stay home to raise the kids, there are plenty of financial challenges to deal with, both short and long term. Pictures worth a thousand words Income insurance: how does it work? No one ever sees it coming, but... an accident can happen so fast! If you were suddenly unable to work due to an accident or illness, income insurance, or “disability insurance,” could help you to meet your financial obligations. Let’s talk money! Which of the following security features is not found on Canada’s polymer $20 bill?
Work accidents: Do you have enough coverage? October was Canada’s Healthy Workplace Month, which makes this the perfect time to ask a serious question: If you had an accident at work, how well would you be protected, financially? Looking for something for your living room wall? There is artwork for every budget. But as an investment? Better take a look... Pictures worth a thousand words In honour of the 10th anniversary of Actualis, here is an overview of the financial changes we have lived through since 2006... along with a few other interesting highlights! Considering working abroad? Which city do you think has the highest cost of living for expats? The best of the Web… and elsewhere In each issue of Actualis, we dig up a few nuggets, online or elsewhere, that can provide a deeper understanding of the financial and economic times we’re living through.
At least when we’re contemplating our taxes! Here’s an overview of the decisions that could have a significant impact on your income tax return a few months from now – but that you might want to be thinking about right now. In this special edition, we present a selection of 12 articles, videos and infographics that have appeared in Actualis during 2016. Here’s your chance to see the ones you may have missed.
Did you experience any major changes in your life in 2014, or are you anticipating any in 2015? It might be time to review your choices in the areas of financial security and personal finance. Alpine skiing, cross-country, hockey... winter sports are one of the best ways to enjoy the season. But there’s a price to pay! Pictures worth a thousand words How will your retirement be funded? Aside from RRSPs, how familiar are you with the other components in Canada’s pension system? Follow the guide. Your credit card habits are so impeccable that your financial institution wants to reward you by automatically increasing your credit limit, which is currently $10,000. What’s the maximum percentage increase they can give you? In each issue of Actualis, we dig up a few nuggets, online or elsewhere, that can provide a deeper understanding of the financial and economic times we’re living through.
What’s the state of your union? Valentine’s Day is behind us, but love is still a hot topic – particularly when it comes to personal finances. Pictures worth a thousand words Do we pay a lot of income tax? Ah, income tax! We always think we’re paying too much. But look around… Which Canadian province or territory has the highest median RRSP contribution, according to the latest Statistics Canada data? In each issue of Actualis, we dig up a few interesting items, online or elsewhere, that can provide a deeper understanding of the financial and economic times in which we live.
What if you outlive your life expectancy? In the area of personal finance, what’s the worst thing that can happen? Some people would say that it’s outliving your savings. If only we could tell exactly how many years of retirement to plan for! It’s finally spring – maple sugar time! Actually, have you ever thought about what sugar does to our health? It’s a topic of interest to an increasing number of researchers. And they’re coming up with some startling numbers. Pictures worth a thousand words Financing postsecondary education more easily Allowing your child to go to university without going into debt… Is that possible? Yes, it could be - with the help of a registered education savings plan: an “RESP”. If you were born on January 1, 1994, what is the total amount you are allowed to put in a TFSA? In each issue of Actualis, we dig up a few interesting items, online or elsewhere, that can provide a deeper understanding of the financial and economic times in which we live. QUEBEC 2015-2016 Provincial Budget: One, two, three… zero! Do you like provincial budgets? The one tabled on March 26 by Quebec’s Finance Minister, Carlos Leitão, is the third we’ve enjoyed in just over a year. On the agenda: zero deficit – at least if the coming year lives up to the minister’s projections.
QUEBEC 2015-2016 Federal Budget : Life after zero When a finance minister is brandishing a pair of New Balance shoes on the eve of the budget, you can be sure that a balanced budget will play a starring role in his presentation. But what else? Read on!
With summer and vacation time on the horizon, the month of May is a good time to think about your family – particularly if your family is brand new! Here’s a helpful guide for new parents. What if you stopped working tomorrow? Almost everyone dreams of the day when they don’t have to work anymore. But if you are forced to stop because of an accident or illness, that dream may become an unpleasant reality. Pictures worth a thousand words Have you moved recently? If you have, you know that moving can cost a pretty penny. But how much, exactly? And how does your move compare against the average? Here’s a graphic look at the issue with some practical information. If you invested $10,000 in the S&P/TSX Composite Index on January 2, 2015, how much was your investment worth on April 30, not counting fees or commissions? In each issue of Actualis, we dig up a few nuggets, online or elsewhere, that can provide a deeper understanding of the financial and economic times we’re living through.
Ah, vacation! Just when you think you’ve thought of everything and covered all the bases… there’s always something else. Here’s a handy checklist before you lock the door. Is your portfolio really diversified? “Don’t put all your eggs in one basket.” Everyone knows that saying. But in the case of investments, what exactly constitutes a basket? Pictures worth a thousand words How soon should you start investing? The answer is simple: as soon as you have an income. On June 1, you returned from the United States and noticed that, thanks to the exchange rate, the $2,450 you spent on your trip had risen to $3,075 Canadian. How much would the same amount have cost you in Canadian dollars on the same date five years ago? Check out this month’s finds... In each issue of Actualis, we dig up a few nuggets, online or elsewhere, that can provide a deeper understanding of the financial and economic times we’re living through.
Retirement: a time for reflection Say goodbye to retiring at 65! At least if we’re talking about Old Age Security. But that’s just part of the story… Complex stepfamilies, complicated finances If there’s one concept that parents in stepfamilies know all about, it’s complexity! Managing personal finances in this situation has its own particular demands... and its risks. Pictures worth a thousand words How can you pay down your mortgage faster? Do you own your home? Then it’s probably one of your most valuable assets. On the other hand... your mortgage is probably your biggest debt! So how can you pay off this debt quickly? There are three main ways. Greece was the OECD country with the highest harmonized unemployment rate for all persons, as of last March. The complete answers are: Check out this month’s finds... In each issue of Actualis, we dig up a few nuggets, online or elsewhere, that can provide a deeper understanding of the financial and economic times we’re living through.
Back-to-school special: Savings 101 While education may lead to an enriching career, it’s better to have already built up some riches so you can afford it! In this special issue of Actualis, we present two tools that can help you do that: one for your kids and one for yourself, if you are thinking of going back to school.
A recent study seems to show that dealing with a financial services professional can lead to significant advantages. Before leaving the summer cottage to its own devices for the winter, there are certain chores to be done. Here’s one of them: think about insurance. Pictures worth a thousand words A penetrating look at a record debt load Graphic review of Canadian household debt. Population aging in Canada recently crossed a new threshold: Canadians aged 65 and over now outnumber those aged 15 and under. Can you guess which province or territory has the highest median age? Check out this month’s finds … In each issue of Actualis, we dig up a few nuggets, online or elsewhere, that can provide a deeper understanding of the financial and economic times we’re living through.
Looking for new pastimes for this year’s holiday season? Why not some games centred on finance and the economy? Pictures worth a thousand words Saving up to buy your first home Do you dream of owning your first home? Two savings vehicles can carry you closer to your dream. Other than little monsters and candy, what is the “Halloween effect”? Check out this month’s finds … In each issue of Actualis, we dig up a few nuggets, online or elsewhere, that can provide a deeper understanding of the financial and economic times we’re living through. How to get started in the world of investment Investing: complicated, expensive? Actually, it might be easier than you think. QUEBEC How to get started in the world of investment Investing: complicated, expensive? Actually, it might be easier than you think.
The countdown has begun. After December 31, it could be too late to make certain decisions that will affect your tax bill next spring. Here’s a short checklist. Yours to (re)discover this month In this special edition, we present a selection of 12 articles, videos and infographics that have appeared in Actualis during 2015. Here’s your chance to see the ones you may have missed.
Health, wealth and… wellbeing? In our New Year’s greetings, we often put an emphasis on health as the most precious commodity. By the way, are you familiar with the Canadian Index of Wellbeing? Meet the little-known younger sibling of the GDP. Who doesn’t dream of becoming their own boss? Maybe you do, yourself! So, here’s a brief guided tour of the exciting – but demanding – world of self-employment. Pictures worth a thousand words Or why buying lottery tickets will never be part of any serious financial plan. It’s RRSP time again… and soon enough it will be income tax time. Suppose that your RRSP contribution limit for 2013 is $10,000, that you contributed $5,500 in 2013, and that you make a new contribution of $4,250 on January 25, 2014. If your marginal tax rate is 34%, how much tax could your RRSP contributions save you when you file your income tax return in April 2014? In each issue of Actualis, we dig up a few nuggets, online or elsewhere, that can provide a deeper understanding of the financial and economic times we’re living through.
2014-2015 Federal Budget : Number ten Finance Minister Jim Flaherty tabled his tenth federal budget in Ottawa on February 11. After the “balanced-budget years” followed by the “deficit years,” what does the minister have in store for us on his tenth anniversary? 2014-2015 Provincial Budget : What if...? Unless all the political observers are mistaken, an election will likely come hot on the heels of the most recent Quebec budget. But the question is still relevant: what if, by some chance, this budget did end up being passed? A brief look at some policies we might be looking at again – or not – in two or three months.
As we get ready to see flocks of migrating birds returning to our northern skies, our good old loonie has been heading resolutely south for months now. Should we be happy or concerned? “My house is my retirement plan!” That’s something we often hear from people who would prefer to grow their wealth by investing in their house instead of their RRSP. Good choice? Pictures worth a thousand words How to protect your finances from the unexpected Is it true that one misfortune always follows another? When it comes to financial security, it seems that things often happen that way. It’s tax time again! Every year, we ask ourselves the same question: how can we manage to pay as little as possible? One program that has been in place for a while now is the federal tax credit for your children’s arts and fitness activities, intended as an incentive to get them off the couch. Do you know the maximum allowable amount of expenses that can be claimed for each child who participates in arts and fitness programs? Check out this month’s finds... In each issue of Actualis, we dig up a few nuggets, online or elsewhere, that can provide a deeper understanding of the financial and economic times we’re living through.
Surviving summer – financially April, May… June. In the blink of an eye, your kids will be on vacation. But your budget won’t! Summer camp, day camp, trips, outings… Can we keep it all under control? Inheritance? What inheritance? Is getting an inheritance from your parents – or your long-lost uncle who went off to Australia to prospect for gold – something you think about? It might not amount to a great financial strategy. Here’s why. Pictures worth a thousand words How much money do they make on that? It’s a question that we all end up asking ourselves on some shopping trip or other. Who, exactly, is making money on my purchase, and how much are they getting? The warm weather is back, and you’ve decided that it’s finally time to take action! You’re going to start looking for your next home. You begin by perusing the real estate listings and find that, for the kind of place that interests you, the average asking price is $350,000. If you buy a house at that price, make a down payment of $20,000 and plan to close the deal in June, how much will it cost you for the mortgage loan insurance that your lending institution gets from the CMHC? In each issue of Actualis, we dig up a few nuggets, online or elsewhere, that can provide a deeper understanding of the financial and economic times we’re living through.
With our aging population, more and more people every year, whether they want to or not, are becoming “informal caregivers” – with all the associated human and financial burdens. But who will help these caregivers? Selling your own house: worthwhile – if… Does the thought of selling your house without having to pay a realtor’s commission appeal to you? It could be a great way to maximize your gain… But the process can be demanding. Pictures worth a thousand words Do you dream of buying your first house, but don’t know where you’d find the down payment? In the very unlikely event of a financial institution going bankrupt, Canadians can rely on the Canada Deposit Insurance Corporation (CDIC) to protect their assets… at least, some of their assets. Suppose that you use just one bank for most of your savings. You have $1,500 in a chequing account, $18,500 in a savings account and US$3,500 in a foreign currency account. Along with that, you have $55,000 in GICs with a four-year initial term, and a TFSA holding $31,500 invested in equities. If the bank in question were to go under, how much could you recover from the CDIC? In each issue of Actualis, we dig up a few nuggets, online or elsewhere, that can provide a deeper understanding of the financial and economic times we’re living through.
Can you sense it? There’s a holiday feeling in the air… For the occasion, here are our top 7 tips to help you end up with only good memories from your next trip. QUEBEC Two provincial budgets in just over three months: Quebecers are really being spoiled this year! Here's a little guided tour of the budget tabled by Finance Minister Carlos Leitão last Wednesday, from the taxpayer's point of view.
Summer isn’t over yet, but parents are already starting to think about the new school year. What if the whirlwind of shopping for back-to-school necessities could become an opportunity to initiate the kids into the basics of personal finance? Remember this past spring? The Heartbleed security bug prevented millions of taxpayers from filing their income tax returns online. Can we ever really trust the Internet? Pictures worth a thousand words Are we earning more than before? They say that everything in life – and especially the economy – goes up… But does that include our wages? An update in diagrams. Canada is not immune to the effects of global climate change. Natural disasters are becoming more frequent and more severe. Hurricanes, tornados, forest fires, torrential rainstorms and other natural phenomena are causing an increasing amount of property damage. Can you identify the main cause of property damage in Canada? In each issue of Actualis, we dig up a few nuggets, online or elsewhere, that can provide a deeper understanding of the financial and economic times we’re living through.
Good for your health. Did you know you were far more likely to fall seriously ill than die? If that sounds crazy to you, read on. Planning to start a family? Or perhaps the stork is already on the way? Things are certainly going to change… and possibly your finances more than anything else. Today’s lesson: first baby 101. You’ve decided to take advantage of mortgage renewal time to increase the amount of your mortgage, so that you can make some renovations. But how much of an increase will your lender allow? Let’s say your monthly income is $7,500, your mortgage payments are currently $1,050 a month, your heating costs are $2,800 a year, and your property and school taxes are $4,550 a year. Approximately how high a mortgage payment will your financial institution accept? In each issue of Actualis, we dig up a few nuggets, online or elsewhere, that can provide a deeper understanding of the financial and economic times we’re living through.
It may be possible, with an RESP and a little help from those who care. It’s a challenge many couples face, and it’s a bigger deal than you might think. Pictures worth a thousand words Stress is an old friend that tags along with us in every area of life, especially at work. But our relationship with this frenemy could turn out to be costly. It’s finally time for early retirement! You’re about to make your dream come true: live in your condo in Florida while keeping a bit of money coming in with some contract work you can do at home. But since you’ll soon be 65, it’s also time to apply for your Canadian Old Age Security benefits. What steps do you need to take before leaving? In each issue of Actualis, we dig up a few nuggets, online or elsewhere, that can provide a deeper understanding of the financial and economic times we’re living through.
What types of fraud are aimed at seniors and how can they be protected? Money doesn’t grow on trees... But at times it might seem as if it does! What would you do with a financial windfall? Pictures worth a thousand words Retirement income: what are your options? You have to terminate your RRSP in the year you turn 71. What are your options at that point? The holiday season is approaching, bringing with it the usual round of gifts, parties, etc. Every year it seems to cost more. Actually, you can find out for sure if that’s true by simply checking the Consumer Price Index prepared by Statistics Canada. But what is the CPI exactly? Can you identify the item in our list that is not included in the CPI basket of goods and services? In each issue of Actualis, we dig up a few nuggets, online or elsewhere, that can provide a deeper understanding of the financial and economic times we’re living through.
At least as far as income tax is concerned! Here are a few of the more important questions you might want to ask yourself before the year is out.
What do our possessions cost us? Sometimes a lot more than you might think! So if you have resolved to keep a firmer rein on your spending after the holidays, read this for a better idea of what you’re up against… Starting a business: an exciting challenge, but… It’s the dream of many Canadians: being their own boss. Starting a small business. But the consequences for personal finance can be significant! How can you make sure that the cards are stacked in your favour? Pictures worth a thousand words The seven pillars of financial planning Before building a house, it’s always best to have a set of detailed plans. The same goes for your finances. A good plan drawn up by a skilled financial services professional can help you build on solid ground. The stock markets have taken us on quite a ride since 2008 but, all things considered, they treated investors rather well in 2012. Their performance hasn’t been uniform the world over, however. Which of the following stock markets turned in the best and worst performances last year? In each issue of Actualis, we dig up a few nuggets, online or elsewhere, that can provide a deeper understanding of the financial and economic times we’re living through.
Real estate: Start of a new ice age? Given how long it’s been talked about, it seems inevitable that the housing market would start to cool. And based on all the indicators, that’s exactly what’s happening. The beginning of the year is an excellent time to pause and evaluate the situation – which is true for financial services professionals too! Pictures worth a thousand words Canada still has its triple A rating … But as our infographic below shows, membership in this club is increasingly restricted. You have just made your 2012 RRSP contribution, but you weren’t able to contribute your eligible maximum amount. Assuming the maximum amount was $8,000, that you contributed $4,500 and that your earned income in 2012 was $52,000, how much will you be entitled to contribute in 2013? In each issue of Actualis, we dig up a few nuggets, online or elsewhere, that can provide a deeper understanding of the financial and economic times we’re living through.
2013-2014 Federal Budget: Zero deficit in two years We know how concerned the federal Finance Minister is about Canadians’ debt loads: he’s the one who has tightened the mortgage rules four times since 2008. The budget he tabled last Thursday shows that he is just as concerned about the debt load carried by the country itself.
Welcome to the era of “grey divorce” Retirement at last! Free time, projects that have been put off for years, travel… And separation. A look at a new social phenomenon with what could be considerable financial consequences. New, used, loan, insurance… Buying your first car can be a rough ride. Here are a few pointers from veteran road warriors to help navigate this purchase without crashing your financial plan. April is income tax month! So can you answer this very simple, but very important, question? We have prepared a table showing the combined marginal tax rates (federal and provincial) that applied in 2012 to the highest income bracket in each of Canada’s provinces and territories (not including capital gains and dividends). But there’s a catch: one of the figures we’ve given is wrong. Do you know which one? In each issue of Actualis, we dig up a few nuggets, online or elsewhere, that can provide a deeper understanding of the financial and economic times we’re living through.
Almost everywhere in the world, the job market has been hit hard by the economic crisis. But within the exclusive club of countries that have withstood the storm, Canada is sitting pretty... Will it last? The major cost of minor accidents Ouch! Doctor! Ouch, my wallet! Sometimes, life’s little accidents can have a surprisingly large impact on our personal finances. Can we do anything to guard against that? Pictures worth a thousand words Planning on spending a few days in another city this summer? Be prepared to find out that the cost of living varies greatly from place to place in North America. The graphics we’ve prepared for this issue of Actualis will give you some idea. You contributed $5,000 to your TFSA in 2009, and $4,000 in each of the following three years (2010, 2011 and 2012). In February 2013, you withdrew $15,000. How much are you allowed to contribute to your TFSA between now and the end of 2013? In each issue of Actualis, we dig up a few nuggets, online or elsewhere, that can provide a deeper understanding of the financial and economic times we’re living through.
The little mystery of big condo fees Happily settled into your new condo? Congratulations! Now, get ready to face a financial reality that few new owners are familiar with: the famous condominium fees. Canadian vacationers often forget that their usual insurance doesn’t necessarily apply in full once they cross the border. And that could cost them big time! Pictures worth a thousand words Titre: Health is wealth: insure it As we go through life, a variety of risks may threaten our health, and these can affect our financial situation. The raising of the official retirement age from 65 to 67 has been a hot topic ever since it was announced last year. This change would be partly justified by the increase in Canadians’ life expectancy. Given that life expectancy at birth, based on the combined statistics for men and women, is now over 81 years, can you say what it was when our public pension plans were established back in 1966? In each issue of Actualis, we dig up a few nuggets, online or elsewhere, that can provide a deeper understanding of the financial and economic times we’re living through.
The summer of living dangerously Are we imagining things? It seems as if, these days, summers inevitably bring with them floods, wildfires, and accidents that wreak havoc on whole communities. And the summer of 2013 is no exception. Newlyweds’ guide to (financial) happiness Been to any weddings this summer? Maybe even your own? Then the time has come to find out what the science of financial planning can reveal about the future of wedded bliss… Pictures worth a thousand words How our life expectancy is shaking up retirement planning. Over the years, you have patiently socked money away in an RESP (registered education savings plan). Bolstered by the grants you’ve received and the tax-sheltered investment income, the plan now holds $50,000. Unfortunately, your only child has decided to go teach yoga in Singapore and doesn’t plan on going back to school for her postsecondary education – ever. What happens to your money? In each issue of Actualis, we dig up a few nuggets, online or elsewhere, that can provide a deeper understanding of the financial and economic times we’re living through.
Apparently, it does! Perhaps it’s time to go back to school? Living longer, staying healthy If only it were always possible! But it seems that many of us are not going to age in excellent health. And that could cost us plenty. Fortunately, solutions are beginning to emerge. Pictures worth a thousand words From diapers to diploma, a pretty good investment! Let’s talk pensions! The Old Age Security (OAS) Program guarantees a monthly pension to all eligible Canadians who request it, starting at a specific age. If you were born on January 10, 1961, when will you be entitled to start receiving your OAS pension? In each issue of Actualis, we dig up a few nuggets, online or elsewhere, that can provide a deeper understanding of the financial and economic times we’re living through.
You’ve heard it, read it, maybe even written it yourself in an online chat: YOLO (“you only live once”) has become a kind of justification for thinking only of the present. For some people, though, it may have become more than a catchy buzzword. What future for our health care system? All over the world, economists are beginning to wonder about the long-term viability of our health care systems. What about Canada’s system – and what can we do? Pictures worth a thousand words Do you know what’s in your credit report? Lots of things that you, yourself, might have forgotten. The end (of the year) is nigh! Yes, already. Between now and December 31, many mutual funds will be paying distributions to their unitholders in the form of income, dividends and/or capital gains. Assuming a marginal tax rate of 42%, how much tax would you have to pay on a distribution of $1,000 made to your RRSP in the form of a capital gain? In each issue of Actualis, we dig up a few nuggets, online or elsewhere, that can provide a deeper understanding of the financial and economic times we’re living through.
Early summer is often the time when people move, but it’s in winter that they’re thinking about it! Which means that, these days, many people are asking themselves the age-old question: city or suburbs? An excellent question! How much does a million dollars cost? More precisely, how much does a million-dollar life insurance policy cost? You may be surprised. It may also surprise you to find that a million dollars is not as much as you thought when it comes to maintaining quality of life for your loved ones. Pictures worth a thousand words What is long-term care insurance? According to Statistics Canada, in the past 50 years, Canadians’ life expectancy has increased by about ten years. This month, our little quiz is about the delicate issue of debt. Say you have a $275,000 mortgage, which you repay monthly at an annual interest rate of 4.25% over 25 years. How much will your monthly payments go up if your interest rate increases to 5.75% when you renew the loan? In each issue of Actualis, we dig up a few nuggets, online or elsewhere, that can provide a deeper understanding of the financial and economic times we’re living through. A review of some decisions that can save you a little – or even a lot – at tax time… As long as you act before the year ends. In this special issue, we present a selection of 10 articles, videos and graphic features that appeared in Actualis in 2013. Here’s an opportunity to catch up with ones you missed, or simply to reflect on the financial news of the past year.
Which brings us back to the number one rule when it comes to retirement savings: always consult your financial services professional!
In recent weeks, pension plan reform has returned to the headlines with a vengeance. Instead of dreaming about “freedom 55”, we’re beginning to wonder if we might have to work until we’re 67 before getting our pensions. But why? What, exactly, is the problem? Uh… What did I have in my wallet? It’s a question that most of us don’t give much thought to in our daily lives, but it’s the first thing we ask ourselves if our pocketbooks suddenly come up missing. While more and more people are choosing the single life to the traditional family structure, many members of this growing segment of society aren’t paying enough attention to their personal finances. When taking the leap and buying a first home, it’s quite legitimate to compare the respective financial benefits of the new purchase… and the old rental. In fact, both options have benefits and drawbacks. Fortunately, there are tools that can help you make a more informed decision. QUEBEC 2012-2013 Quebec Budget Last Tuesday, Quebec Finance Minister Raymond Bachand tabled his government’s budget for the next fiscal year. Now that we’ve had our initial reactions, what should we be focusing on?
The budget tabled last Thursday by federal Finance Minister Jim Flaherty is going to change the face of retirement in Canada. But it would be an error to look no further into it than that. A brief analysis from a personal finance perspective. The way gas prices have been rising in the past few years, many drivers are starting to wonder how high the cost at the pump can go… A glance at the situation elsewhere in the world will help put things in perspective. A more sensible way of being generous We all have causes that are dear to us, and we usually try to support these with donations to organizations that back them. But did you know that, from a tax perspective, some ways of giving are more effective than others? A short introduction to the concept of planned giving.
An inspection is an essential step in buying a home. But what are the most important things an inspection should cover? And where does one begin?
RESPs: definitely worth studying! The cost of a university education has been attracting a lot of attention recently. Which begs the question: Have you heard about the RESP? Ah, the barbecue! A culinary ritual that goes with summer, vacations, and camping… But do hotdogs, hamburgers and soft drinks go with savings, too? As we move into summer, let’s take a brief look at the dark side of your meatball. Pictures worth a thousand words Some people think that death puts an end to all of a person’s obligations. Interestingly enough, that’s not true. The stock market did not do too well in 2011 and you have capital losses of $5,200 on some investments in your RRSP. How much in previous gains can you apply against these losses on your tax return? In every issue of Actualis, we’ll be featuring a variety of interesting bits drawn from the web and elsewhere, to help you understand more about the financial and economic realities of the world we live in.
Mortgages: another turn of the screw! What if interest rates suddenly went up 1%? That’s what economists are saying the new federal mortgage rules amount to. But will the changes produce the desired result? Is it a crazy idea to insure your children? When building an insurance portfolio, most people will usually leave some parts of their lives entirely uncovered. Their children, for example. Is that a mistake? Pictures worth a thousand words How deeply in debt are Canadians? A portrait of Canadian borrowers and their share of the country’s total household debt. In which category of consumer goods have prices gone up most in Canada over the last 12 months? In every issue of Actualis, we’ll be featuring a variety of interesting bits drawn from the web and elsewhere, to help you understand more about the financial and economic realities of the world we live in.
So whose bright idea was school, anyway? Are you done? Are the kids finally out the door? Now that the insanity of the back-to-school season is over, many parents are catching their breaths…and surveying the damage all that spending – on items large and small – has done to their bank accounts. But it’s not too late to adjust your aim.
Not very well! But even so, need we fear that the European debt crisis will eventually have repercussions on this side of the Atlantic, including on our personal finances? Here's a brief analysis of the eurozone crisis and its effects. Career change: switching paths successfully According to Human Resources and Skills Development Canada, the average Canadian worker will have as many as eight jobs during his or her working life – repeated changes that need to be factored into any financial security strategy. Pictures worth a thousand words Do you know how much money you owe? On average, each Canadian is carrying a debt load equal to over 150% of his or her disposable income! If you contribute $4,000 to a Registered Education Savings Plan (RESP) between now and the end of the year, what is the basic amount of the Canada Education Savings Grant that you can receive for 2012? In each issue of Actualis, we dig up a few nuggets, online or elsewhere, that can provide a deeper understanding of the financial and economic times we’re living through.
No matter what the state of the economy, Canadians always find a way to buy their gifts, decorations and other necessities for the holiday season. Is it the magic of Christmas… or the magic of credit? Does anyone still want a life annuity? Do your parents or grandparents receive payments from a life annuity? Could that be why we tend to consider life annuities to be old-fashioned? What if we’re wrong? Pictures worth a thousand words 25 years of free trade: where do we stand? An overview of trade with our main trading partners. In November 2012, you purchase some mutual fund units, and their value remains more-or-less the same over the next few months. However, in February 2013, you receive a tax statement showing interest income, dividends and capital gains that you supposedly received from this investment. What should you do? Best of the Web… and elsewhere In each issue of Actualis, we dig up a few nuggets, online or elsewhere, that can provide a deeper understanding of the financial and economic times we’re living through.
Top 10 tax decisions for the end of the year Ten little things that can make a big difference in your 2012 income taxes.
The smart way to invest in your home It’s RRSP time! But it’s also the time of year when many of us start thinking about home renovation projects for spring. Provided they don’t prevent you from making the maximum RRSP contribution, such projects could also be a good investment. It all depends on what you’re planning to do. Want to live a long time? They say that working keeps you healthy. Turns out that a good network of friends does, too! Retirement is also a state of mind A growing number of studies show that you need a psychological plan for retirement as much as a financial plan. Will you be ready?
Mortgages aren’t what they used to be On March 18, some new standards for residential mortgages will come into force in Canada. Will this be enough to rein in the spiralling debt load that Canadians are carrying? Do you and your spouse ever talk about… money? For any couple, richer or poorer, talking about finances can easily create static. The solution? Clear the lines of communication – for love and money. When the markets are on the rise, we sometimes say that good news has put them in a buoyant mood. And when things aren’t going so well, they’re… “depressed”. Sound familiar? QUEBEC 2011-2012 Quebec Budget The Quebec government laid it on the line two years ago: the next few years will be a time of austerity for Quebec taxpayers. If we had any doubts about that, the 2011-2012 budget has put them to rest.
What’s hiding behind our income tax returns? Behind the form we fill out each year is hidden a complex system of taxation where it’s easy to get lost... Welcome to “Income Tax 101,” courtesy of Actualis Express!
Reviewing your life insurance: just like spring cleaning Spring is often a time of renewal: new house, new car, new travel – sometimes even a new relationship! All of which should prompt us to think about our life insurance coverage. Ever feel as if you’re spending too much? That’s no surprise: retail stores are designed specifically for that.
Federal Budget 2011-2012 With the budget he tabled on June 6, Finance Minister Jim Flaherty picked up where he left off last March. In politics, it’s often said, a few months is an eternity... But it ain’t necessarily so when it comes to public finance!
Is disaster protection possible? Earthquakes, floods, forest fires... Financial crises aren't the only unforeseeable events. Mother Nature herself sometimes throws us a few curve balls. And these can play havoc with our financial security, too. When it comes to tipping, how much is too much? With summer vacations upon us, here's some advice - on the house. This summer, thousands of young Canadians will receive their degrees... and the little memo that comes with them: time to start repaying that student loan. Don't panic! Managed properly, this debt is actually a sound investment.
The stock market: where are we at? What a summer! It felt almost like the summer of 2008, when the stock market took a dive that lasted until March of the following year. Almost - but not quite. "You are getting very sleepy..." No need for a hypnotist to put us under when we're not getting enough sleep - which happens to be the case for many workers. In fact, people are starting to talk, particularly the... economists. Pay your interest with a smile Well, maybe not a smile... but at least with the consolation that you can use it as an income tax deduction. Read on to find out what conditions apply.
Interest rates are low? Chronically low interest rates have a number of consequences. Some are positive. Others, not so much.
After the first shock of being diagnosed with a critical illness, there is another shock to be faced. And it has to do with your wallet. Critical illness insurance: for medical expertise, too When you are diagnosed with a critical illness, the first thing you want to be sure of is that your treatment will be the most effective possible for your condition. And that’s one of the advantages of critical illness insurance. Critical illness insurance: because life has changed Critical illness insurance is a rapidly growing segment of Canada’s personal insurance market. Why? No doubt because it meets a pressing need.
In just a few more days, we will turn the page on another year. But unless you want to turn the page on some fantastic opportunities for tax savings as well, consider acting on the suggestions below without delay!
A study by the Canadian Institute of Actuaries has revealed that between 30 and 50 % of the total cost the public health care system pays out for a person is spent in the last six months of his/her life. Striking, no? And that has personal implications too. Add a little bite to your portfolio Buying a dog to improve your portfolio? It’s not as crazy as you think. At least not if you subscribe to the “Dogs of the Dow” theory put forward in 1991 by economist Michael Higgins. Dividends: ignoring them would be a mistake Given the recent financial crisis, many major companies have a surprise in store for their shareholders: they’re cutting their dividends! But that’s no reason to snub shares that provide this type of income.
Bringing down an exploding deficit without raising personal income taxes? It’s a rather novel approach, but it’s what Minister Flaherty is gambling on. Should we celebrate? Not just yet!
Is that extended warranty really necessary? Once you realize that an extended warranty is actually an insurance product, it’s easier to make the decision. In response to the recent economic and financial crisis, governments around the world injected massive amounts of cash in their economies. Those billions are now on their balance sheets. Welcome to the new age of debt. QUEBEC 2010-2011 Quebec budget They announced it last year. This latest budget provides clear confirmation: in 2011, Quebec will begin the task of putting its financial house in order. Which leaves us barely one year to adjust our financial planning to suit.
The bond market: time for patience With interest rates expected to rise again, many investors are about to make a singular discovery: bonds can also lose value. What Buffett likes at the investment buffet Warren Buffett is recognized as one of the most brilliant – and wealthiest – investors of all time. So what does he have in his portfolio? Honey, they shrunk the mayonnaise jar! Remember when food prices really went up two years ago? The financial crisis soon distracted us from that. But it left a definite impact.
Are we taking enough vacations? Summer is here, which means it’s vacation time! Unless you’ve decided you’re not really going to take a vacation this year. Or maybe you’ll go, but with your BlackBerry or iPhone hooked to your belt. That could cost you more than you might imagine.
We might be world-beaters when it comes to Olympic gold medals, but when you start talking money, we don’t have much to brag about. In fact, many observers are uneasy about the gaps in Canadians’ financial knowledge. How do you choose a credit card that really meets your needs? There’s a service for that. General wisdom has it that everyone should keep the equivalent of three months’ salary in reserve to cover unexpected expenses. It’s a great theory, but how do you put it into practice?
Informal caregivers: a challenge for our time It takes courage to care for a loved one who has lost their independence due to an accident or illness. And there is certainly no lack of courage among informal caregivers! What they do lack, however, is adequate support. Who will care for the caregivers?
Can you go wrong with an RRSP? An RRSP is a fantastic tool for building a retirement nest egg, but…
Now or never is the time to make certain decisions that could have a significant impact when you fill out your income tax return next April. And since there are 12 months in the year, here are 12 such tax-reducing decisions for you to consider.
Ever since the creation of the TFSA was announced in the 2008 federal budget, everyone’s been talking about it. Now, it’s a reality… The TFSA is in effect. And ignoring it would be a mistake! The Super Bowl as a stock market indicator? Armchair market watchers have a number of ways to predict the markets, even using football’s ultimate game to foretell what direction Wall Street will take. New legislation gives all RRSP’s the same protection from creditors that Registered Pension Plans and insurance-based RRSP’s already enjoyed.
The natural reaction during tough economic times is to reduce spending and pay down debt. Unfortunately, that doesn’t help get the economy moving! So what should we do? What happens when we die is a highly philosophical question but, for our heirs, it can become a very real headache. One of the most talked-about features of the recovery plan announced by the federal government is a home renovation tax credit. Fed up with your old kitchen? Time to clean up your mortgage? Spring is here! And it just might be a good time to give your mortgage a spring cleaning – it could make a noticeable difference to your finances. QUEBEC One of the most talked-about features of our governments’ recovery plans is the home renovation tax credit. But pay attention: the federal and provincial programs have their differences! Jumpstart the economy now. Pay in 2011. Kiss the good life goodbye! That’s more or less the message to be gleaned from the budget tabled by Quebec’s Minister of Finance last Thursday. Might as well get used to it, because the bill we’ll be hit with in 2011 is going to be a hefty one.
Safeguarding your summer vacation Warm weather’s on its way, and you may be dusting off your passport and sensible walking shoes for that long-awaited getaway. But did you remember to pack your insurance? It’s been a long winter! It’s time to go outside and get active! And it might even be good for your finances. Another way to take care of yourself Staying in good health is one thing. Making sure things are taken care of if you’re not is another. And it’s just as important.
Look, the TSX is at 10,000 points! If you’ve been living on another planet since last fall and look at the stock markets today, you must be wondering what everyone was so worried about these past few months. The recession’s sweet nothings A recession sometimes affects consumer behaviour in strange ways. Summer courses at the school of life How long would you have to work to pay for those inline skates? Using summer vacation to teach your kids some important financial lessons. Income splitting: a new opportunity Never before seen: The Canada Revenue Agency recently announced that the prescribed interest rate for the second quarter of 2009 is barely 1%.
And how long do you think it will take to pay off that credit card? Well, well, fancy that… Unpaid credit card bills are increasing in Canada. Did someone say "bubble?" Using coupons: it’s not as silly as you might think… Can using coupons really save you money? According to a recent study, yes – a lot. Should you hire a private tutor for your child? More and more parents are choosing this option. But it isn’t free …
In the future, who will take care of our retirement? With the announced disappearance of defined benefit pension plans, the way everybody sees their retirement is about to change radically. Even those who didn’t have such a plan!
Good news! The governor of the Bank of Canada recently announced that economic growth is back, with projections 2.0% and 3.3% for the second and third quarters, respectively. Let’s talk about oil a little… Some experts believe that the price of a barrel of oil will soar over the next few years. And would stay high for good.
10 things to do before the end of the year Many of the decisions you make now could mean all the difference in April, when you file your tax return. Here’s a list of the 10 most important decisions to consider right now in order to take full advantage of existing programs and keep the taxman as far away as possible.
No joke! There actually is an economic index based on MacDonald’s famous hamburger. Serious analysts are studying it with interest. QUEBEC Retirement: let’s look at the facts Here’s a new proverb for this RRSP season: Tell me what you’re doing with your money today and I’ll tell you what kind of life you’ll be living tomorrow. Contributing to your spouse’s RRSP: yes or no? During RRSP season, we make decisions that will affect our lives in 20, 30 or 40 years. So, contributing to your spouse’s RRSP may be an excellent idea, even if the new pension income-splitting rules target the same goal.
Federal Budget: The new TFSA… and the rest What’s of interest in the latest Flaherty budget? The new Tax-Free Savings Account, the TFSA? The measures are not as spectacular as in recent years, but still, they will make some people happy. Most people have heard of ethical investing. But not many know that there is at least one fund out there doing exactly the opposite. A quick look at this concept. Recession: Lessons from the past With the pundits wondering if we are about to enter a recession, the best place to look is backward, not forward. The seven elements of successful planning Do you have your whole future in front of you? Or perhaps you’re about to take an important step in your life. Are you wondering how to make the most of it? QUEBEC No matter how hard we look, the Quebec Finance Minister’s budget tabled on March 13th contains very little that will directly impact our tax returns. With a few exceptions, of course.
10 years = 100 % : A decade of real estate in Canada On average, Canadian homeowners have seen the value of their properties double between 1997 and 2007. A great return on their investment! Coming Soon: The four-hour workweek? Work four hours a week and live like a millionaire: that is the recipe offered by U.S. entrepreneur Tim Ferriss. How much does it really cost when you get sick? A recent study has put a financial value on something we sometimes hesitate to admit: illness can be a very, very expensive proposition.
Inflation: the forgotten monster We thought it was under control. Not true. Inflation is alive and well, and the worldwide commodities crisis proves it. We have no choice but to face the beast head on.
Work-life balance: What’s the current situation? Finally, it’s vacation time! Swimsuits, sunglasses, sun screen … and your Blackberry. So, what’s the situation with work-life balance? Obesity: An increasingly heavy weight on our finances A combination of sedentary lifestyles and diets rich in processed foods is having a growing impact on both public and private finances. Are we benefiting from the strong Canadian dollar? Logic dictates that a stronger dollar should result in lower prices for Canadians. But what’s really happening?
Democrat or Republican: What will it mean for your portfolio? The upcoming US elections will be closely watched around the world. But how will the markets react? Credit Ratings...5 Important Questions A sound financial situation begins with a sound credit rating. Yet many people give little thought to just how much good credit can help them realize their plans for the future. Here are five key questions to consider. Buying rental property - A Hands-on Approach to Investing Buying rental property might be a sound investment - provided you’ve carefully weighed the advantages, the disadvantages and the risks.
Stop the markets – I want to get off! This fall has been quite a time. With the stock indexes bouncing like a bungee jumper and the global financial system reeling like a punch-drunk boxer, what’s an ordinary investor to do?
When will the good times return? After the two months of market turbulence we’ve just experienced, some people are asking a very reasonable question: Will we ever get back the money we’ve lost? And if so, when?
New Climate in Residential Real Estate Housing prices are free falling in the U.S. and many mortgage lenders are actually going under. Although the situation is less precarious in Canada, it doesn’t mean we shouldn’t adjust. We often say that working is healthy. Indeed, and the reverse is also true: staying healthy does require some work … Inoculating your Mortgage against Illness? Most homeowners will agree that their biggest debt is their mortgage loan. As well, it has been shown that, more and more, this debt is particularly vulnerable when illness is concerned. Caution!
Asking the moon for help with your investments Recently, a serious business publication, the Harvard Business Review, reported that the moon may have an influence on stock prices. Is it simply a rumour or is it true? Many people maintain that Canadians, believing they are doing a good thing, are taking out too much life insurance. How do you know whether you have too much or too little life insurance? There’s a very simple way of finding out. It seems that vacations and wills don’t necessarily go well together. But a properly planned will can certainly help you take off on the adventure of your dreams in peace!
Successfully passing the torch It’s now time for thousands of business owners to transfer power to their successors. But… are they ready? Following the most recent federal budget, Registered Education Savings Plans (RESPs) have become more flexible than ever – and more profitable. It’s a strange paradox: on average, Canadians earn more than before, but they don’t necessarily put away more money.
The Stock Markets: Where do we stand? Stock investments weathered a stormy summer this year. Is it over yet? Greenspan: a view from the inside After nearly two decades as the ultimate Washington insider, Alan Greenspan has released a memoir of his life as past Chairman of the US Federal Reserve. Giving sound advice requires sound knowledge Socrates said "Know thyself," but for a financial representative, it's "Know thy client!"
Commercial paper: what went wrong? Why is the commercial paper crisis such a big deal? Taking stock of an idea gone wrong. QUEBEC A tasty celebration for everyone! Everyone has his or her own specialty … which is why a financial representative should be especially careful before venturing into the field of gastronomy. And yet ... Not much time left before 2008 rolls around. So, in the list below, you'll find some of the items you mustn't forget at this time of year. Print and read it at your leisure to help optimize your financial plan with regards to taxes.
The idea of the “sandwich generation” has been around for over 20 years. Now it’s becoming a fact of life for more and more people. And if you happen to be the filling in the sandwich, you could be in for some hard choices in the near future. Having conquered the U.S. market, 35-year and even 40-year mortgages have started to appear in Canada. Creative solution or false economy? Learning to save, saving to learn The start of a new school year has just reminded parents that education has its price – one that seems to get higher every year. So it’s also a good time to remember that a registered education savings plan (RESP) is an excellent tool for leveraging the money you put away for your child’s education.
Income trusts: a lesson learned? Recently, Finance Minister Jim Flaherty abruptly put an end to the advantages enjoyed by income trusts. What now? The pre-Christmas frenzy can sometimes lead to unwise purchasing decisions… but a little bit of reading before you buy can make a huge difference. Surveys show that almost three-quarters of Canadians have an unpaid credit card balance in January – a balance so high that more than 25% take six months to bring it down. Talk about a spending hangover. |
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