Category: Saving strategies

Giving while living: a new approach to transferring wealth

There are many things to consider when planning the transfer of wealth within families. And while Canada doesn’t have an inheritance tax, there are still other fees and taxes that could substantially reduce the value of your estate. One option available to minimize these costs is to “gift” a portion of the assets you intend … read more

Challenges facing the mature student

The number of older students returning to school has increased in recent years, as more workers are finding it necessary to upgrade their skills in order to adapt to rapid changes in the workplace. New technologies and updated practises have combined to impact not only how we carry out our job-related tasks, but also the … read more

Income splitting with a spousal RSP

If you intend to contribute to your RSP this year, you still have a few weeks to get in before the deadline of March 1. For the 2016 tax year, you may contribute up to 18% of your 2016 income, to a maximum of $25,370. As always, you can carry unused contribution amounts forward, thereby … read more

Overcoming the “Money Illusion” with GIC laddering

You’d be forgiven for thinking that the term “Money Illusion” is some kind of magic trick. And while it does suggest that things are not as they appear, there’s nothing magical about it. The term Money Illusion describes the tendency many of us have when we think of money in absolute amounts, and not in … read more

5 other things you can do with an RSP

5 things you may not know about RSPs

For those building wealth for retirement, a Registered Savings Plan (RSP) is a tried and true foundation relied upon by many savers. There’s good reason for this, as an RSP provides many advantages. But while most of us already know the merits of contributing to an RSP, fewer know of the other potential ways in which … read more

7 tips to stretch your travel budget

7 travel trips

With the holiday season now long behind us, and several months yet until the busy summer travel season begins, we’ll soon be into what the travel industry refers to as the “shoulder season”. Running from April to mid-June, the shoulder season is a good time to look for travel bargains before prices rise, as inevitably … read more

RSPs, TFSAs and your retirement strategy

RSPs, TFSAs, and your retirement strategy

The Tax-Free Savings Account (TFSA) was frequently in the news during last year’s federal election campaign. TFSAs made headlines again when the newly-elected government followed through on its pledge to roll back the TFSA annual contribution limit. With the RSP deadline now looming, conversations are once again turning to TFSAs and the annual question of whether … read more

Creating retirement income with an annuity

When it comes time to convert your RSPs or other accumulated savings into steady retirement income, the choices primarily come down to transferring funds into a RIF, or purchasing an annuity. Both can provide a reliable source of income for your retirement years, but there are important differences between the two. We’ve previously looked at … read more

Strategies for investing in GICs

Re-balancing portfolio asset classes Financial advisors recommend an investment portfolio balanced with equities such as stocks or mutual funds, together with fixed income instruments including bonds and GICs. Generally speaking, equities are considered higher risk than fixed income as equity values fluctuate depending on market conditions. Fixed income securities, as their name implies, produce a … read more