#TFSA Investment Advisor

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TFSA Investment- A Tax-Free Savings Benefit

In Canada, people prefer to have a tax-free money-saving solution. According to the Canada Revenue Agency report, nearly 15.3 million Canadians invested in TFSA in 2019. Moreover, there are around 22.3 million TFSAs, which means each Canadian has around 1.5 TFSAs. Since this is one of the most popular investment options, people like to invest in a Tax-free investment account. However, according to TFAS advisors in Toronto, this plan offers more than only tax-free savings.

The TFSA holds complex investment products such as exchange-traded funds, mutual funds, and equities. The products help to maximize your investment, and all earnings will be tax-free. So, if you want tax-free savings but are still determining whether the product is the right fit, here's what a TFSA investment advisor in Canada says.

What is TFSA?

The Canadian government introduced this personal saving system TFSA (Tax-Free Saving Account), in the 2008 budget. This savings account is to help people save money for different purposes. You can begin contributing to a TFSA as of January 2, 2009, and the accumulations are tax-free. A TFSA can comprise a mix of asset classes, including funds, equities, treasuries, GICs, and mutual funds.

Any Canadian citizen who reaches 18 on any date throughout a calendar year is eligible to make deposits in TFSA. The "contribution room" of the TFSA holder starts to grow at that point. This refers to the discrepancy between the exact worth contributed and the total maximum deposit permitted.

If you fall short of your annual contribution cap, the shortfall is carried over to the subsequent year. This further added to your earned income. INSUREDCAN, a TFSA investment advisor in Canada, explains how TFSA works if you still have doubts.

How Much Investment Should I Make in TFSA?

As per the TFSA advisor in Toronto, for 2023, the annual maximum TFSA investment for each person is set at $6,500. The yearly maximum donation limit originally was as follows:

1. $5,000 from 2009 to 2012

2. $5,500 in 2013

3. $10,000 in 2015

4. $5,500 in 2016

5. $6,000 from 2019 to 2022

The subsequent year's TFSA contribution ceiling will be increased by any carried-over unused investment space from the previous year. Therefore, a calendar year's worth of withdrawals will result in more contribution space the following year.

What are The Benefits of TFSA?

With a TFSA, you may save money in qualified assets and see it grow tax-free lifetime. In a TFSA, dividends, earnings, and investment income are tax-free for life. In addition, you can take any number of tax-free withdrawals from your TFSA investments anytime for any reason.

Additionally, you can add the money you withdraw back into your TFSA. You must do it next year to avoid it affecting your contribution room. Some other significant benefits of TFSA by TFSA investment advisors in Toronto are as follows:

Withdrawals are Not Mandatory 

These tools are excellent for massive products but also a terrific method to make long-term investments. For example, if you started a TFSA after getting a new car or house, you could seek a long-term investment vehicle. Let investment grow if you don't have any major expenses planned shortly.

Withdrawal Doesn’t Affect Benefits

The performance of a TFSA will not generally impact your eligibility for income-tested government benefits, which is also important from a tax viewpoint. Although it may not be a selling factor for many investors, this might save the lives of limited income seniors who get benefits with strict claw-back clauses.

Effective Tax Strategy for Real Estate Planning

Although no one loves to talk about it, it might be crucial if you want to safeguard the financial prospects of your family members. Upon the demise of the account owner, distributions from a TFSA may be paid to a beneficiary—whether a family member or friend—without triggering any tax consequences.

Your Spouse/Law Partner Can Contribute

Contributions to TFSAs are made with post-tax money. The TFSA of a spouse or common-law partner may receive contributions, according to the TFSA investment advisor in Toronto. To increase your payments, you may make a TFSA contribution to the spouse's or common-law partner's account.

Will the TFSA Account Closed If I Leave the Country?

After creating the TFSA, you can still leave the TFSA account open and pay no taxes on any earnings or withdrawals in Canada. You may not be able to make contributions to your TFSA. However, you are still allowed to make contributions during the year that you changed residences. You should have been aware of a 1 % penalty fee. You have to pay this penalty every month that a prohibited non-resident contribution stays in the TFSA.

Bottom Line

So, this is all about TFSA and how it benefits you to grow your money without paying taxes. The best thing is that TFSA assets can be used as security and loans. However, the TFSA is not for non-residents of Canada. If you leave the country and are no longer a Canadian, you'll be able to manage TFSA but not be able to contribute further to the TFSA account.

For more updates or information about TFSA, contact us. INSUREDCAN is a TFSA investment agent advisor in Toronto who guides you to get the right saving options.

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TFSA investment advisor in Toronto

A tax-free saving account is best if you want to grow your money without paying taxes. According to the TFSA investment advisor in Toronto, this savings account helps you increase your money faster. In addition, individuals do not need to pay on the income they earn through the account. 

[retirementblogs]

Smart Retirement Planning: Minimizing the Old Age Security Clawback

Retirement is a significant milestone in one's life, marking the transition from years of hard work to a period of relaxation and enjoyment. However, ensuring financial security during retirement requires careful planning, particularly when it comes to navigating the complexities of government benefits such as Old Age Security (OAS). In 2024, understanding the implications of the OAS clawback is crucial for retirees to optimize their retirement income and minimize the impact on their financial well-being. In this article, we'll delve into strategies for smart retirement planning, focusing on minimizing the OAS clawback while maximizing income and preserving wealth for the future.

Understanding the OAS Clawback in 2024

The Old Age Security program is a cornerstone of Canada's retirement income system, providing a modest pension to eligible seniors. However, for retirees with higher incomes, the OAS clawback can significantly reduce or even eliminate OAS benefits. In 2024, the income threshold at which the OAS clawback begins is $79,845, with benefits fully clawed back at $129,075. This means that for every dollar of income above the threshold, OAS benefits are reduced by 15 cents.

Understanding the OAS clawback 2024 is essential for retirees, as minimizing its impact is crucial for optimizing retirement income. By strategically managing income and assets, retirees can mitigate the impact of the clawback and preserve their retirement savings.

Strategies for Minimizing the OAS Clawback

Income Splitting: Leveraging income-splitting strategies with a spouse can help equalize income and reduce the impact of the OAS clawback. By splitting eligible pension income, such as Registered Retirement Income Fund (RRIF) withdrawals, retirees can effectively lower their combined income and preserve OAS benefits.

Tax-Efficient Investments: Investing in tax-efficient vehicles such as Tax-Free Savings Accounts (TFSA) and capital gains can help minimize taxable income in retirement. By structuring investment portfolios to prioritize tax efficiency, retirees can reduce their overall tax burden and mitigate the effects of the OAS clawback.

Delaying OAS Benefits: For retirees with the flexibility to do so, delaying the commencement of OAS benefits can be a strategic move. By deferring OAS benefits until a later age, retirees can increase the amount of their monthly payments while reducing the impact of the clawback on their overall income.

Utilizing Corporate Structures: For business owners and entrepreneurs, leveraging corporate structures can provide opportunities to manage income and assets more effectively. By incorporating strategies such as dividend sprinkling and income splitting through a family trust, retirees can optimize their income streams and minimize the impact of the OAS clawback.

Consulting with Financial Advisors: Working with experienced financial advisors, such as those at Bellwether Family Wealth, can provide invaluable guidance in navigating the complexities of retirement planning. Dan Beyaert and his team specialize in helping retirees optimize their financial strategies, including minimizing the OAS clawback, to achieve their retirement goals.

Conclusion

In 2024, smart retirement planning requires a proactive approach to managing income and assets to minimize the impact of the OAS clawback. By employing strategies such as income splitting, tax-efficient investing, delaying OAS benefits, utilizing corporate structures, and seeking advice from financial experts like Dan Beyaert at Bellwether Family Wealth, retirees can optimize their retirement income and preserve their wealth for the future.

FAQs

What is the OAS clawback threshold in 2024?

The income threshold for the OAS clawback in 2024 is $79,845, with benefits fully clawed back at $129,075.

How can I minimize the impact of the OAS clawback?

Strategies for minimizing the OAS clawback include income splitting, tax-efficient investing, delaying OAS benefits, utilizing corporate structures, and seeking guidance from financial advisors.

Is it worth delaying OAS benefits to reduce the clawback?

Delaying OAS benefits can increase the amount of monthly payments while reducing the impact of the clawback, making it a viable strategy for retirees with flexibility.

What role do financial advisors play in minimizing the OAS clawback?

Experienced financial advisors like Dan Beyaert at Bellwether Family Wealth can provide personalized guidance and strategies to help retirees optimize their retirement income and minimize the impact of the OAS clawback.

Are there any other government benefits affected by the OAS clawback?

While the OAS clawback primarily impacts OAS benefits, it can also affect other government benefits such as the Guaranteed Income Supplement (GIS) for low-income seniors.

[financialadvisorcanada]

What Your Retirement Tax Planner Wishes You Knew

Retirement planning is complex and involves careful consideration of many different aspects, including potential tax consequences. Working with an experienced retirement tax planner as you get ready for retirement can really help you maximise your funds and optimise your tax plan. We'll go over the most important information your retirement tax planner shared with you and what they wish you knew about retirement tax preparation in this post.

Start Early: One of the most important things your retirement tax planner wishes you knew is the importance of starting retirement tax planning early. By beginning the planning process well in advance of your retirement date, you can take advantage of tax-saving opportunities and optimize your financial situation. Early planning allows for greater flexibility in implementing tax strategies and can help minimize tax liabilities over the long term.

Understand Your Options: Your retirement tax planner wants you to be aware of the various retirement savings options available to you and understand how each option may impact your tax situation. From RRSPs and TFSAs to pension plans and employer-sponsored retirement accounts, there are numerous vehicles for saving for retirement, each with its own tax implications. By understanding your options, you can make informed decisions about how to structure your retirement savings to minimize taxes and maximize benefits.

Plan for Retirement Income: Another crucial aspect of retirement tax planning is planning for retirement income. Your retirement tax planner can help you develop a tax-efficient withdrawal strategy to minimize taxes on your retirement income sources, such as pensions, RRSP withdrawals, and investment earnings. By strategically timing withdrawals and utilizing tax-deferred accounts, you can optimize your retirement income while minimizing your tax burden.

Consider Estate Planning: Your retirement tax advisor wishes you were aware of how crucial it is to include estate planning in your overall retirement tax plan. Making a strategy for the distribution of your assets after death is known as estate planning, and it can have a big tax impact on your heirs. You can reduce estate taxes and make sure your assets are dispersed in the way you want by creating an estate plan with your retirement tax planner.

Seek Professional Advice: Your retirement tax planner wants you to know how important it is to have professional assistance when it comes to retirement tax preparation above all else. It can be difficult to navigate the complexity of the Canadian tax system, particularly when making retirement plans. To help you manage the tax ramifications of retirement and make wise financial decisions, a professional retirement tax planner can offer invaluable advice, knowledge, and assistance.

Finding a retirement tax planning advisor near you is essential for building a strong and trusting relationship. By working with a local advisor, you can benefit from their knowledge of local tax laws, regulations, and resources. Additionally, meeting in person allows for greater flexibility in scheduling appointments and ensures you can access ongoing support and assistance as needed.

In summary, retirement tax planning is a critical aspect of preparing for retirement, and your retirement tax planner has valuable insights to share. By starting early, understanding your options, planning for retirement income, considering estate planning, and seeking professional advice, you can optimize your tax strategy and achieve your retirement goals. Don't hesitate to search for a 'retirement tax planning advisor near me' online to uncover the secrets of effective retirement tax planning and maximize your savings potential.

[finresilienceinstitute]

Building Financial Resilience: A Canadian Guide to Wellbeing

Financial Resilience and Wellbeing in Canada are paramount in today's unpredictable economic landscape. In this blog, we will explore the concept of financial resilience, measure its impact on overall financial health, delve into financial health and resilience reports, and introduce the financial wellbeing framework in Canada. This comprehensive guide will equip you with the knowledge and tools necessary to navigate the challenges and uncertainties of the Canadian financial landscape while striving for optimal financial wellbeing.

Understanding Financial Resilience and Wellbeing in Canada

In Canada, Financial Resilience and Wellbeing are intertwined, reflecting the ability of individuals and households to withstand financial shocks and maintain a sense of security. This includes measures like having an emergency fund, managing debt responsibly, and saving for the future. But how can we measure the impact of these actions on our overall financial health and resilience?

Measure Financial Health Impact

To assess the impact of your financial actions, consider the following:

Emergency Fund: Having a well-funded emergency fund is a key indicator of financial resilience. It provides a buffer against unexpected expenses and disruptions to your income.

Debt Management: Responsible debt management, such as paying down high-interest debts and avoiding unnecessary credit card debt, positively affects your financial health.

Savings and Investments: Regularly contributing to savings and investments, such as RRSPs or TFSAs, contributes to long-term financial wellbeing.

Insurance Coverage: Adequate insurance coverage, including health, auto, and home insurance, safeguards your financial stability in times of crisis.

Financial Health and Resilience Reports

To better understand your financial situation in Canada, consider consulting Financial Health and Resilience Reports. These reports provide insights into your credit score, debt-to-income ratio, and other critical financial metrics. Regularly reviewing your financial reports can help you identify areas that require improvement and track your progress towards financial resilience.

Financial Well-being Framework in Canada

Canada has established a Financial Wellbeing Framework in Canada  that outlines the key elements for achieving financial resilience and overall wellbeing:

Budgeting and Planning: Creating a budget and financial plan tailored to your goals and circumstances is essential.

Emergency Preparedness: Building an emergency fund and having appropriate insurance coverage are crucial components of the framework.

Debt Management: Responsible debt management, including reducing high-interest debt, should be a priority.

Savings and Investments: Consistently saving and investing for both short-term and long-term goals is integral to financial wellbeing.

Income Diversification: Exploring additional income streams, investments, or side hustles can enhance your financial security.

Regular Assessment: Regularly assess your financial plan and make adjustments as needed, taking into account changing life circumstances.

Professional Guidance: Seek advice from a financial advisor with expertise in the Canadian financial landscape for personalized guidance.

Conclusion

In collaboration with the Financial Resilience Institute, you can embark on a journey towards greater financial resilience and wellbeing in Canada. By measuring the impact of your financial choices, staying informed through financial health reports, and aligning your actions with the financial wellbeing framework, you can build a robust foundation for your financial future. Remember that achieving financial resilience is an ongoing journey, and with dedication and strategic planning, you can enhance your financial wellbeing in Canada with the support of the Financial Resilience Institute.

[enrichedacademy]

How to Measure Your Money Management Skills

There are plenty of methods and techniques you can use to improve your financial standing, but we sometimes overlook the obvious – what's the best way to measure your results?

When you were 19 you could just look at your bank balance, but as you grow older and your finances get more complicated, it doesn't paint the entire picture. If you really want to keep on top of your progress, here are some of the most relevant metrics.

Net Worth

Add up the value of all your significant assets (real estate, cars, cash, stocks, bonds, TFSA, RRSP,) and subtract all your outstanding debts (mortgages, credit cards, LOC, car loans, etc.) and whatever is left over is your net worth. It can be negative or positive, it will definitely fluctuate (how much more is your house worth this year than last?), but it will always be the gold standard for measuring your financial standing. If you are serious about getting an overall measurement of how you’re budgeting, saving, investing and other financial initiatives are working, you should be calculating your net worth on a regular basis.

Monthly Spend

You need to know where your money goes every month before you can focus on how to start saving money. Some expenses are regular (loan/mortgage payments, some utilities, RRSP or TFSA contributions), and can be easily monitored almost to the penny, while others fluctuate depending on the season or your social calendar (food, clothing, entertainment, travel).

The key is to track all your expenses for several months and land on a monthly average spend you can use as a benchmark going forward. You can always dive into your expense tracking details to find specific areas to cut back but keep your focus on the bigger picture of average monthly spend.

High-interest Debt Reduction

Some debt is inevitable and while you may be tempted to attack a low-interest mortgage, it isn’t mission critical if you are disciplined and saving and investing that extra cash. On the other hand, any higher-cost debts (over 5%) like credit cards, LOCs, vehicle loans, student loans, etc. need to be dealt with ASAP.

Fortunately, of all the ways to measure your financial progress, none is more satisfying or inspirational than tracking the month-to-month demise of a long-standing, interest-sucking debt like a credit card balance.

Beyond the stress relief and emotional boost, it also makes a huge impact from a financial perspective. That money previously wasted on interest is now going to steadily flow back into your pocket and can be used to attack another hi-interest loan – or to save and invest!

Credit Score

While you may not agree that your credit score is an accurate picture of your money management ability or financial situation, it is an objective, frequently used 3rd party yardstick that is based on real world data. It is also quite responsive to change, although it may take a few months to catch up due to the lag in collecting data.

If you are responsible (or irresponsible!) with your use of credit, you will very likely see a corresponding change in your score. Also keep in mind that your credit score is key to capitalizing on many opportunities, not just lower interest rates on loans. You should check your score a couple of times each year.

Advisor Fees

Many people are blissfully unaware of how much the fees (like a 2% MER on the mutual funds in a TFSA or RRSP) on their investments are costing them every year, and how these fees are compounding over time to rob thousands from your retirement fund. You should be investigating all the fees (built into funds and any additional fees paid to your advisor or bank) and keeping your total under 1% annually.

There are some very low-cost DIY investing options that are well below 1%, but they may require more time and knowledge than you have. Find a solution that works for you, but always keep a close eye on the cost of your investments.

Reliably and accurately assessing your progress is a must if you are serious about improving your financial situation and want to sustain that improvement over the long-term. Make sure you have some benchmarks and metrics in place to help you focus on goals and keep you motivated.

[officialstandardhumans]

SH66: Investing 102 - Asset Allocation, Diversification, and When to Sell

How to make your money go faster than Max Verstappen (Formula 1 driver). Not actually, there’s no get rich quick schemes here, just the basics of choosing how to invest your hard-earned money for the long-term.

In this episode, the humans talk about asset allocation, diversification, how bonds work, what a dividend is, fantasy formula 1 leagues, minimizing fees, tax-advantaged accounts, and when to sell.

Standard Humans is hosted by Aidan Dennehy and Evan.

Shownotes:

What Are Index Funds?

What is an ETF?

Eat the Rich: The GameStop Saga Netflix Show

The Beer Pipeline in Bruges

Broke Millennial Takes On Investing: A Beginner's Guide to Leveling Up Your Money by Erin Lowry

Beginners' Guide to Investing in Bonds

How Bond Funds Work

Why Do Bond Prices Go Down When Interest Rates Rise?

Formula 1: Drive to Survive Netflix Show

Formula 1 Fantasy League

Tickets For Montreal Grand Prix 2023

What Is a Target-Date Fund?

Vanguard Asset Allocation Investor Questionnaire

What Did Enron Do?

TFSA (Tax Free Savings Account)

RRSP (Registered Retirement Savings Plan)

Tax-Free First Home Savings Account (FHSA)

Robo Advisors vs. Index Funds

Canadian Couch Potato Model Portfolios

Where to Learn More

Wealthsimple Personal Finance 101 - Collection of great articles for understanding the basics of investing for Canadians

“Best Investing Strategies” article by Wealthsimple

Broke Millennial: Stop Scraping By and Get Your Financial Life Together by Erin Lowry - A great book for getting through the pre-investing checklist

The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness by Dave Ramsey - Also good for the pre-investing checklist

Broke Millennial Takes On Investing: A Beginner's Guide to Leveling Up Your Money by Erin Lowry - Amazing beginner’s guide to investing

A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing by Burton G Malkiel

The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns by John C. Bogle - Investing advice from the guy who created the first index-fund

How The Economic Machine Works by Ray Dalio - Great video to understand how the economy works

The Financial Diet - Great YouTube channel for general money advice

Graham Stephan - Another great YouTube channel, he gets into riskier investments and more aggressive saving than we cover in the episode, but his stuff on the stock market is pretty good. Especially if you’re looking for context on things that are currently in the news.

What Is Financial Independence, Retire Early? A Beginner’s Guide - article by Time on the FIRE movement

Apps to track your finances

Mint - Great free budgeting app

Wealthica - Great free investment tracking app

Quicken

Asset Allocation Quizzes

Vanguard Investor questionnaire

Example Asset Allocations

Canadian Couch Potato Model Portfolios - Most simple asset allocation strategy I can find

Couch Potato Portfolio Returns for 2021

Three Fund Portfolio

iShares Asset Allocations by Investment Style

Questrade ETF Portfolios - Scroll down to the asset allocation section to see what they invest in based on different risk profiles

Best SINGLE ETF Portfolio Canada (2022) YouTube Video

The EASY ETF Portfolio! - Index Fund Stock Market Investing YouTube Video

Robo-Advisors

Wealthsimple

Questrade

List of Robo-Advisors in Canada

Brokerages (Companies that you can buy stonks through)

Wealthsimple Trade

Questrade

Best online brokers in Canada for 2022

ESG Investing Resources

How to invest your money (and not wreck the climate) - Great video by Simon Clark on how to use your investments to make the world a better place and get a great return on investment

Carbon Collective - American climate change Robo-advisor, their overarching strategy is a good template

10 Best Clean Energy ETFs In Canada (Oct 2022): Go Green - Good article on clean tech ETF options for Canadians

Bank.green - Great resource for finding an eco-friendly bank

Tax Advantaged Accounts

TFSA

RRSP

Tax-Free First Home Savings Account (FHSA) - New account coming 2023

RESP

High-Interest Savings Accounts

Best high-interest savings accounts in Canada 2022 - Moneysense article

Best High-Interest Savings Accounts in Canada - Wealthsimple article

EQ Bank: Savings Plus Account

Helpful Tools

Wealthsimple Income Tax Calculator - Quickly calculates how much you will have to pay in tax based on your income level

Portfolio Visualizer Great for comparing the performance of different asset allocations and portfolios

[infoassurances-blog]

Info Assurances

Info-Assurances capture your information in order for a Financial Advisor to make a follow-up call with you to get counsel on permanent and term life insurance, mortgage loan insurance, disability and critical illness insurance, school funds accounts (RESP), TFSA and RRSP, non-registered investment accounts and more...

Info Assurances

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How to Invest In A TFSA

A TFSA allows you to save as well as invest after-tax dollars, which grow and compounds in interest tax-free. You can also withdraw this money tax-free, every time you wish. It’s an implausible opportunity to build wealth and a tool for both long-term as well as short-term savings. While it’s not complicated, there are certain parameters to learn. InsuredCan is an insurance aggregator that has numerous TFSA Investment Advisor in Toronto that guides you to prefer TFSA plan.

TFSA Investment Options

When opening a TFSA, most investors choose between two chief types of accounts.

Regular deposit accounts, which are opened at a pecuniary institution. Since this type of TFSA is registered with a specific bank, investment options are limited to that bank’s suite of offerings, including HISAs, GICs as well as mutual funds.

Self-directed TFSAs, which are held with a brokerage, so investment options aren’t restricted to what a bank offers. A self-directed TFSA can hold GICs, mutual funds, stocks, bonds, ETFs, as well as more.

Types of TFSA investments

A TFSA isn’t an investment unto itself (like stocks, bonds, or mutual funds), but somewhat it’s a type of account that can comprise these — and other — types of investments.

Interest-bearing investments

Interest-earning investments (like GICs, HISAs and bonds) are usually “slow as well as steady” in growth, with limited volatility and limited gains.

Pros: Interest income is 100% taxable outside of a TFSA, so a TFSA can shelter this kind of income from taxation.

Cons: Because of limited gains, there will be less compound development over time. Also, if your money is locked into a GIC or bond, you can’t extract it until the investment comes due.

Capital Gains and Dividend Investments

Investments that earn capital gains as well as dividend income (like stocks, ETFs, and mutual funds) can be more volatile than interest-bearing investments. However, over long periods of time, they tend to perform healthier (depending on the investment choice). InsuredCan has a lot of TFSA Investment Advisor in Ontario that helps you to prefer investment plan that are appropriate for you.

Pros: Inside a TFSA, capital gains as well as dividends can compound, which over time can result in dramatic gains, all of which are tax-free.

Cons: If you’re planning to (or need to) make a withdrawal from your TFSA in the small term, and the investment has gone down in value, you may crystallize a loss. And unlike non-registered investments, you can’t subtract that loss from other taxable capital gains.

 Vital Concerns When Investing In A TFSA :  Consider a TFSA to be a tool in your economic planning toolkit. Here are certain ways it can be used.

Short to medium-term investment goals :  Unlike Registered Retirement Savings Plans (RRSPs), there’s no disadvantage for withdrawing money from your TFSA any time, and the withdrawal amount is added back to your permissible contribution limit the following year.

Thus, TFSAs can be used for investment goals like the down payment for a home, a life event like a wedding or big vacation, or even as an extra fund. The disadvantage of using a TFSA for shorter-term goals is that you lose out on the tax-free compound development of a longer-term investment plan.

Retirement savings : Using a TFSA for retirement savings has numerous advantages. For example, because your eventual withdrawal in retirement is tax-free, it won’t disturb other income-based retirement benefits like Old Age Security or the Guaranteed Income Supplement.

In fact, an argument could be made that TFSAs are additional tax-preferential than RRSPs; although you don’t get a deduction for your contributions, 100% of the growth is tax-exempt. RRSPs give you an instant deduction, but when you withdraw the money (which will presumably have grown suggestively), it is 100% taxable.

Tax planning : A TFSA can be helpful in your tax planning strategy. For example, in lower-income years, you can invest in a TFSA (when the tax deduction from investing in an RRSP wouldn’t be as large), as well as you can withdraw TFSA money during higher-income years deprived of affecting your taxable income.

Because TFSA withdrawals aren’t added to income, they won’t have an impact on income-based tax credits or benefits, like GST/HST Credits, Canada Child Benefit, Canada Workers Benefit, and the Age Credit.

[insuredcan3]

A TFSA or also known as TFSA Investment Advisor in Toronto by INSUREDCAN. It is a registered savings vehicle that helps you produce your money faster. This is because you don’t pay taxes on the interest or investment income you earn. Choose from a assortment of savings and investment products for your TFSA Investment Advisor in Toronto by INSUREDCAN contributions. This includes savings accounts like the CIBC Tax Advantage Savings Account, GICs, in addition to other investments like mutual funds and stocks.

[sweetjamblog]

individual investment account

Personal or individual investment account. Take control of your personal investments with HSBC’s unparalleled online investing access to both the North American and leading international equity markets. 1 HSBC InvestDirect is a division of HSBC Securities (Canada) Inc., a wholly owned subsidiary of, but separate entity from, HSBC Bank Canada. HSBC Securities (Canada) Inc. is a member of the Canadian Investor Protection Fund. 2 HSBC Premier eligibility requires you to have an active Premier chequing account and maintain a $100,000 balance in combined personal deposits and investments with HSBC Bank Canada and its subsidiaries. Monthly banking package fees may apply. 3 Available on online equity trades on North American markets. Subject to conditions. For more information on HSBC InvestDirect rates, visit www.investdirect.hsbc.ca. 4 International Equity trades made online, excluding Hong Kong, and all international trades placed on the phone qualify for the International Equities trade discount. Subject to minimum commission. The content herein is not intended to provide specific tax advice and should not be relied upon in this regard. HSBC makes no guarantee, representation, or warranty and accepts no responsibility or liability as to the tax treatment of these services. For full details about TFSAs and how they relate to your own income tax and financial situation, please consult your personal tax advisor. oran, Algeria

https://moneyonlineinvestment.com/_/individual_investment_account/r299502_Help-individual-investment-account/oran-Algeria.html

[sarahcadiz-blog1]

Five reasons to purchase life insurance immediately.

A sound financial strategy includes more than just investing and saving. Another essential component in reaching your objectives may be life insurance.

Paying off debt, setting up an emergency fund, investing in a tax-free savings account (TFSA), a registered retirement savings plan (RRSP), or placing your money in other savings vehicles are some ideas that may come to mind if you’re trying to better your financial status. All of these are crucial components of a solid financial strategy, but life insurance is an essential component that is sometimes ignored.

According to Randy Little, a Certified Financial Planner with Desjardins Financial Security Independent Network in Ottawa, “people who decide to put insurance in place typically have looked at their financial situation, often with the help of an advisor, and identified risks that they are uncomfortable with and want to address.”

Here are five reasons to consider purchasing life insurance if you’re not sure why.

Number 1: To shield your loved ones from financial harm. When someone passes away, their family must deal with that loss’s financial responsibility and emotional toll. Fortunately, life insurance can lessen your loved ones’ worry during a trying time and shield them from unwarranted financial difficulty.

Life insurance is essential if you have dependents who depend on your income, such as a husband or children, Little says. It can be a valuable financial tool regardless of your relationship status. “A young family with children in debt could be worried about the effects of losing one of the parents.”

The family’s surviving parent might require money to pay off debt or fund recurring costs like housing, bills, and groceries, to mention a few.

Your requirements might already be fully or partially met if you work for a company that provides group insurance. People must frequently look for insurance independently without job benefits, and self-employed people have additional difficulties.

Since employer-sponsored group insurance plans do not cover them, Little notes that business owners frequently have the greatest need for independent protection. However, they are hesitant to do so because it would require them to pay for the insurance.

Even if cash flow is a problem, Little advises business owners to talk with an insurance specialist to determine their goals. He suggests they also check into critical illness insurance to safeguard their way of life if they must take a leave of absence from their job due to illness. “It could be a good idea to have some safeguards in place that infuse capital into the business in the event of a health concern.”

Number 2: To assist in paying down a mortgage or other bills Life insurance can help cover the remaining mortgage balance if you co-own a property with your spouse, kids, or other close family members. This may allow your spouse or family to continue living in their existing residence despite the loss of your income, which is vital to many parents.

Additionally, life insurance can assist in covering funeral and burial costs and any unpaid credit card balances, loans, or other consumer debt. Your policy’s death benefit should be sufficient to enable your family to continue living in the same or a comparable manner without your income.

Number 3: To pass wealth on to future generations. Want to leave a legacy for your children or grandchildren? A tax-effective approach may be to purchase a life insurance policy.

According to Little, “someone approaching retirement may not have any obligations, and their children may be grown and independent, but they have the objective of transmitting riches to the next generation.” Life insurance can aid in this transfer of wealth, she adds.

Making your children or grandkids the beneficiaries of whole life insurance, a type of permanent life insurance, is the usual way to accomplish this. Whole life insurance ensures a payout after death, unlike term life insurance, which only provides coverage for a predetermined amount of time. Your beneficiaries won’t have to pay income tax on the money they receive because the death benefit is non-taxable.

Number 4: To have a positive impact on the charity. The ability of life insurance to effectively transfer money to a non-profit organization is one of its lesser-known uses. According to Little, some people are particularly enthusiastic about a particular charity and want to leave a legacy that helps other people.

By designating a charitable organization as the beneficiary of your life insurance policy, the proceeds pass from the insurance provider to the organization tax-free. Additionally, unlike when making a generous contribution through your will, the cash skips the probate process and goes directly to the charity; as a result, it cannot be disputed by beneficiaries or other family members.

Little advises inquiring about alternatives for charitable giving with your financial advisor or insurance provider. Your life insurance policy can make it possible to support causes such as cancer research, animal welfare, human rights, and alma mater donations.

Number 5: To bring you comfort. Life insurance should provide stability and peace of mind regardless of financial position. If you’re unsure whether or when to purchase life insurance, talk to your financial advisor to receive individualized guidance that considers your needs, goals, and spending capacity.

According to Little, obtaining insurance as soon as possible is generally preferable. You will be protected sooner in life, and your monthly premiums will probably be considerably cheaper. According to Little, the insurance cost is determined by the applicant’s age. It’s often advantageous not to delay the talk because of this.

Choosing the appropriate life insurance It can be difficult for many people to determine how much insurance their family needs. However, Little points out that a qualified advisor may talk to you about your goals and use reverse engineering to develop the best strategy. Just make sure you’re working with a respectable expert who will assist you in understanding your options and who will listen to you.

There are various reasons to purchase life insurance, but regardless of what inspired your choice, it will feel good to know that your most prized possessions are safe.

#lifeinsurance #ethos #freewill #protectyourfamily

Sarah Jane Cadiz

August 23, 2022

[financialadvisorcanada]

What Your Retirement Tax Planner Wishes You Knew

Retirement planning is complex and involves careful consideration of many different aspects, including potential tax consequences. Working with an experienced retirement tax planner as you get ready for retirement can really help you maximise your funds and optimise your tax plan. We'll go over the most important information your retirement tax planner shared with you and what they wish you knew about retirement tax preparation in this post.

Start Early: One of the most important things your retirement tax planner wishes you knew is the importance of starting retirement tax planning early. By beginning the planning process well in advance of your retirement date, you can take advantage of tax-saving opportunities and optimize your financial situation. Early planning allows for greater flexibility in implementing tax strategies and can help minimize tax liabilities over the long term.

Understand Your Options: Your retirement tax planner wants you to be aware of the various retirement savings options available to you and understand how each option may impact your tax situation. From RRSPs and TFSAs to pension plans and employer-sponsored retirement accounts, there are numerous vehicles for saving for retirement, each with its own tax implications. By understanding your options, you can make informed decisions about how to structure your retirement savings to minimize taxes and maximize benefits.

Plan for Retirement Income: Another crucial aspect of retirement tax planning is planning for retirement income. Your retirement tax planner can help you develop a tax-efficient withdrawal strategy to minimize taxes on your retirement income sources, such as pensions, RRSP withdrawals, and investment earnings. By strategically timing withdrawals and utilizing tax-deferred accounts, you can optimize your retirement income while minimizing your tax burden.

Consider Estate Planning: Your retirement tax advisor wishes you were aware of how crucial it is to include estate planning in your overall retirement tax plan. Making a strategy for the distribution of your assets after death is known as estate planning, and it can have a big tax impact on your heirs. You can reduce estate taxes and make sure your assets are dispersed in the way you want by creating an estate plan with your retirement tax planner.

Seek Professional Advice: Your retirement tax planner wants you to know how important it is to have professional assistance when it comes to retirement tax preparation above all else. It can be difficult to navigate the complexity of the Canadian tax system, particularly when making retirement plans. To help you manage the tax ramifications of retirement and make wise financial decisions, a professional retirement tax planner can offer invaluable advice, knowledge, and assistance.

Finding a retirement tax planning advisor near you is essential for building a strong and trusting relationship. By working with a local advisor, you can benefit from their knowledge of local tax laws, regulations, and resources. Additionally, meeting in person allows for greater flexibility in scheduling appointments and ensures you can access ongoing support and assistance as needed.

In summary, retirement tax planning is a critical aspect of preparing for retirement, and your retirement tax planner has valuable insights to share. By starting early, understanding your options, planning for retirement income, considering estate planning, and seeking professional advice, you can optimize your tax strategy and achieve your retirement goals. Don't hesitate to search for a 'retirement tax planning advisor near me' online to uncover the secrets of effective retirement tax planning and maximize your savings potential.

[enrichedacademy]

Plenty of Options for Financial Planning in Canada

Whether you use an investment firm or rely on the services available at your local bank or credit union, a lot of us have someone we commonly refer to as our "financial advisor".

It's a generic term and is broadly used, but for most of us it means someone who "handles our investments". The actuality is that the scope of investment products and services they offer as well as their level of professional training and experience varies greatly.

Some of us only rely on an advisor to invest our TFSA or RRSP and meet with them very infrequently, or simply review the statements that show up in the mail from time-to-time. Others depend on their advisor for a lot more than investing and seek advice on retirement planning, tax strategies, saving for a home, and many other issues.

Regardless of the scope or frequency of the service your financial advisor provides, the basic fact is that you are putting a lot of trust (and a lot of cash!) in their hands.

Accordingly, you should be carefully evaluating your initial decision and also monitoring their service on an ongoing basis. Despite the considerable consequences of their job performance on your future, a lot of us spend more time choosing our mobile phone plan than we do the "expert" who manages our life savings.

The main problem with evaluating a financial advisor is lack of knowledge. It is easy for us to judge the quality of food and service at a restaurant and make a decision if we will return, but it's a lot more difficult when it comes to a financial advisor.

Another factor clouding the issue is the confusing hodgepodge of names used to describe financial service providers — (certified) financial planner, investment advisor, financial advisor, financial coach, money coach, etc. Although there are a number of recognized accreditations for investment advisors in Canada, the degree of experience, expertise and qualifications varies greatly.

Whether you have had the same advisor for years or are just now looking for your first, you need to ensure they are offering value for your money. A good advisor is an invaluable resource for those of us who don't have the time or specialized knowledge to manage our finances on our own. However, depending on an advisor also means that you owe it to yourself to carefully evaluate their service and performance on a regular basis.

Financial advisors usually focus on investing while a financial planner takes a more holistic approach. The scope of their services may include budgeting, saving for a home, investing, insurance, etc. Retirement planning in Canada is a complicated issue and people often turn to a financial planner for advice in this area. The Enriched Academy coaching program goes one step further and adds in an education component, so you not only get expert advice and a comprehensive plan, but you also learn to manage your own finances — for life!

There are lots of options to help you manage your money, but it isn’t always clear what each one does, and more importantly, which one is right for you?

A good place to start is to dig into the fees you are paying and what sort of returns you have been getting? High MER fees on mutual funds held in a TFSA or RRSP and compounded over the years can really dig into your retirement fund and aren’t usually justified by the returns on those mutual funds.

You can also evaluate their service on a more basic level — Do they offer all the products and services you require? Do they keep in contact and remember you and your situation? Do they readily and clearly answer your questions.... even "prickly" ones about annual returns and fees? A good advisor should pass your "stress test" with flying colours.

Your main considerations for what sort of financial advice and support you need should be how much knowledge and time you have and the degree you would like to be involved. You could leave it completely up to someone else, and even though they may have a fiduciary duty to act in your best interest, it’s too much of a leap of faith for most of us. We work hard for our money and want to have some ability or knowledge to assess whether it is being managed effectively and within our expectations for risk and return.

If you are reading this article, chances are you are leaning towards educating yourself and taking a more DIY approach. DIY investment planning in Canada is a popular approach, but many Canadians routinely supplement their own knowledge with that of a professional. Some issues like tax planning can be highly specialized and demand expert level knowledge and experience.

Whether you choose a full-service financial planner or decide to go it on your own with a purely DIY approach, make sure to regularly evaluate the risks and rewards/benefits of how you manage your investments and adjust as required — complacency and/or procrastination can be costly!

[insuredcan3]

A TFSA or also known as TFSA Investment Advisor in Toronto by INSUREDCAN. It is a registered savings vehicle that helps you produce your money faster. This is because you don’t pay taxes on the interest or investment income you earn. Choose from a assortment of savings and investment products for your TFSA Investment Advisor in Toronto by INSUREDCAN contributions. This includes savings accounts like the CIBC Tax Advantage Savings Account, GICs, in addition to other investments like mutual funds and stocks.