TFSA vs RRSP – 2024

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When looking to save money in a tax-efficient manner, Tax-Free Savings Accounts (TFSA) and Registered Retirement Savings Plans (RRSP) can offer significant tax benefits. The main difference between the two is that TFSAs are ideal for short-term goals, such as saving for a down payment on a house or a vacation, as its growth is entirely tax-free, while RRSPs are more suitable for long-term goals such as retirement. When comparing deposit differences, TFSAs have a limit of $7,000 for the current year, while RRSPs have a limit of 18% of your pre-tax income from the previous year, with a maximum limit of $31,560. In terms of withdrawals, TFSAs have no conversion requirements and withdrawals are tax-free, while RRSPs must be converted to a Registered Retirement Income Fund (RRIF) at age 71 and withdrawals are taxed as income.

Debt Is a Four-Letter Word

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Debt today is so common, you might say it can’t be avoided. Most people are not in a position to purchase a house or car for cash, while those who can buy such things outright may prefer to finance and keep control of their capital. The truth is, while most of us see debt as a bad thing, any money borrowed to generate income or increase net worth can be considered “good debt.” If the amount borrowed is invested for an overall gain, the debt is a tool. Borrowing to further your education, for example, is good debt since an education generally increases the likelihood you will earn more in the future. Most often, too, the interest paid on this type of debt is tax deductible.

Are You On The Right Track?

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In bull markets, some investors develop unhealthy expectations as to the long term yields their investments should provide. Ten years ago, some came to accept returns as high as 15% to 20% per annum as the base return their fund and portfolio managers were expected to provide. Of course, these expectations came crashing back to earth in 2008 as the bull was chased away by a very large bear. Today, many fund managers are of the opinion that double digit returns are going to be very difficult to achieve with any consistency over the long term. Is it time for us to lower our expectations?

2024 Financial Calendar

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Stay ahead in 2024 with our comprehensive financial calendar! From tax filing to benefit distributions, we guide you through key dates like the $7,000 TFSA contribution and $8,000 First Home Savings Account. Bookmark now for a financially savvy year!

2023 Year-End Tax Tips and Strategies for Business Owners

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Maximize your tax benefits as a business owner in 2023! Learn key strategies for salary vs. dividends, passive investments, and more.

2023 Personal Year-End Tax Tips

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Maximize your tax savings! Discover expert tips on investments, family deductions, retirement, and more in our latest article.

Prepare in Advance for Next Year’s Tax Filing

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Was last year’s filing of your income tax return a satisfying experience for you? Did you have a sense of accomplishment or dismay? For many, the April 30th deadline seems to arrive way too soon. If this is the case with you, starting the process much earlier would seem to be the answer. The process should include proper record keeping, taking advantage of the tax-saving methods available to you, and, perhaps, finally getting a professional to complete and file your return on your behalf.

Tax Free Savings Account

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Unlock financial freedom with TFSA! Discover tax-free growth, flexible withdrawals, and more in our comprehensive guide. Read now!

Basic Planning for Young Families

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As a young family, you will be facing a lot of new challenges that you may or may not be prepared for along the way. Whether it’s children, a mortgage, or unexpected expenses that come up, now is the perfect time to start thinking about all the potential pitfalls that may arise. In this article we want to share some of the ways that insurance can help you stay ahead of these issues, as well as how to prepare yourself for some of life’s obstacles that you and your family may face.

What the Wealthy Know about Life Insurance

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If you have ever thought that life insurance was something you wouldn’t need after you reached a certain level of financial security, you might be interested in knowing why many wealthy individuals still carry large amounts of insurance.