In 2009 the federal government introduced the Tax Free Savings Account concept to Canadians. For anyone 18 years or older the TFSA has been whole-heartedly embraced as a tax-efficient vehicle to save money for short and long-term needs.
However, many people do not fully understand the importance of proper beneficiary designations and subsequently, they miss additional tax planning opportunities.
On February 24th, 2022, Russia invaded the Ukraine, setting off an inflation spiral not seen since the early 1980s. As Russia is the 3rd largest producer of oil and natural gas (behind Saudi Arabia and the USA) the impact of declining reserves was immediate in the prices we paid at the pump this last Spring.
The rise in oil and gas prices in turn escalated the cost of all consumer goods, services, and food items so that the rate of inflation for June 2022 was 9.3%.
What exactly is inflation in economic terms?
With over 350 clients Adam and I are consistently asked a number of key financial questions that we thought all of you would appreciate reading.
Here is the Top 10 list of the most frequently asked questions:
It has been estimated that close to two trillion in intergenerational wealth transfers will occur in Canada over the next decade as Baby Boomers glide through their “golden years”. A massive shift of capital will flow through to the “Boomers” and then again to their children or another family member at death.
The key to maximizing any inheritance (either to be received or to be gifted) is to ensure taxes and estate administrative costs are kept to a minimum, specifically by avoiding the process of probate if possible.
In December 2021 the federal government announced that the 2022 annual TFSA limit will remain at $6,000. This means the cumulative tax-sheltered lifetime limit is now at $81,500.
As I have explained to many clients, there is no “downside” to owning a TFSA, any TFSA is better than no TFSA. However, many people make mistakes with the accounts which can cost them in the long term.
Draft a Will
Dying “Intestate” creates legal and financial obstacles for your family, something which could easily be avoided with a Will.
By not having a Will the government will use a default selection, stating how assets are to be split between your spouse and children
Annually the Canada Revenue Agency (CRA) adjusts the contribution schedules for three of our most popular retirement and investment vehicles.
Increase in RRSP Contribution Room
The maximum allowable room has now been increased from $27,300 (in 2020) to $27,830 as of January 1st, 2021.
Bull or Bear Market deals with stock market expectations from industry analysts for the balance of 2020.
It’s an article I wanted to share from Wealth Professionals. I subscribe to their electronic newsletter and with the election coming up in less than 50 days, thought you may find this of interest.
Even in “normal” times, the future, at least in the short to mid term, is a guessing game at best. The emergence of COVID-19 is the best example that trying to look forward with any clarity and precision is a fools’ errand.