The main purpose of the RESP is to help families save for a child’s post-secondary education. It has become one of the most popular ways for Canadians to plan for future education expenses by offering tax advantages and government contributions which accelerate the growth of the account.
For those not paying attention to the latest Federal Budget proposal, you will be disappointed to learn that the inclusion rate of a gain on an asset sale has risen from 50% to 66.67%. This isn’t the first time the inclusion rate has been changed, nor is it the highest rate.
Who is eligible to open an FHSA? How much can you contribute?
No matter how accurate your expenses are or how much you are able to save each month, without sufficient insurance coverage your financial health has a substantial element of risk. One of the main purposes of insurance is to provide financial security and risk mitigation to ensure that retirement funds are not utilized to cover medical expenses and loss of income during recovery or potential death.
Many individuals wonder what they will need prior to going through a detailed financial analysis with our firm. It can vary based on a multitude of factors, however, there are some key figures that must be known prior to such an analysis.
One of the main factors in a financial analysis and subsequent forecasts is expense levels. Successful sustainability of net worth to age 100 is achievable when expenses are covered by cashflows over the entire period - if you are not in tune with your monthly expenses, even having a discrepancy of $500/month could be detrimental to one’s financial success when it is projected over for 40+ years.
After saving for countless years to build up a sizeable retirement fund, you are left with more questions than when you started. Do you start withdrawing from your RRIF in hopes of reducing your minimum withdrawals? What about your non-registered investments that are generating a possible tax liability each year? There are many different options for withdrawing your retirement income which can be correct depending on several variables.
It is a well-known fact that we are currently experiencing a high inflationary environment, which puts a higher stress on cash flow needs. How accurate would you be if someone asked what your monthly expenses are?
Are contemplating when to take your CPP?