TFSA

Great benefits of opening an TFSA

A TFSA can be an effective way to save for the future, even for those who are only able to save a little every year, as your savings will grow more quickly due to the fact that you do not pay any tax on the earnings. Here are some reasons to help you decide whether it would be financially beneficial for you to open a TFSA:

  • If you are looking for a flexible way to save, a TFSA could be a good option as it allows you to carry forward any unused contributions to subsequent years. In addition, you are able to credit any withdrawals that you have made back into the TFSA to enable you to benefit from the maximum savings potential.
  • You may already be investing the maximum amount possible into an RRSP. In this case, investing money into a TFSA allows you to draw income from it when you retire, without paying any tax on the withdrawals.
  • You should bear in mind that you have already paid tax on the funds that you invest into your TFSA. Therefore, if you expect that your tax rate will have increased by the time that you withdraw your funds, you will have paid fewer taxes in total. Remember that the opposite applies for your investment in a RRSP.
  • A TFSA offers you the option of keeping investments that would usually be subject to a higher rate of tax sheltered, as you do not pay tax on the earnings.
  • If you are on a low income and therefore receive money from government schemes such as the Canada Child Tax Benefit, your TFSA will not affect the amount of benefit that you receive.
Learn More

Latest News

The Health Spending Account for Business Owners and Incorporated Professionals

Discover a game-changing solution to manage medical expenses efficiently - the Health Spending Account. As a business owner, reduce tax burdens and provide tax-free benefits to yourself and employees. No monthly premiums, cost-effective, and hassle-free reimbursement process. Unlock the full potential of your healthcare budget now.

Why A Buy-Sell Agreement Is Vital For Your Business

A buy-sell agreement is a legally binding document that sets out what must happen to a business if one or more of the owners is no longer involved. It is crucial for businesses as it protects both shareholders and the business itself in the event of a partner's departure. A buy-sell agreement provides many benefits, including maintaining business continuity, minimizing disputes between remaining co-owners and the family of the departing owner, decreasing stress and uncertainty for all business owners, and protecting business assets and liquidity with a solid financial and tax plan.

The Five Steps to Insurance Planning

It’s essential to have enough insurance to give you peace of mind and make sure you are sufficiently insured. Working with an insurance agent can help make sure you are adequately insured. The five steps to insurance planning are: • Finding an insurance agent • Meeting with your insurance agent • Reviewing your insurance options • Purchasing insurance • Filing a claim (when necessary) An insurance agent can help you understand your policy covers, how much your deductible will be, and all the steps involved in filing a claim.

Demystifying MER's (Management Expense Ratio)

Investing in a fund involves knowing its associated costs, and the Management Expense Ratio (MER) is a crucial factor to consider. The MER is a percentage of the total assets in the investment fund that covers the fund's operating and management costs. It's important to note that the MER is subtracted from your investment returns, so a higher MER will result in lower net returns for you. For example, if a fund's expenses amounted to 2% of its assets, its MER would be 2%. It's crucial to understand the MER of a fund to make informed investment decisions and ensure that you're getting the most value for your money. In this article and infographic, we will break down the various components of the MER to help you better understand it.

Do you have enough for retirement?

Many of us dream of the day that we can retire and have the time to ourselves that we have dreamed of for so many years. But, to have a genuinely contented and relaxing retirement, you need to ensure that you have the means to afford it. So, now's the best time to consider the three critical stages of retirement planning. 1) Accumulation 2) Pre-retirement 3) Retirement

Tax Tips You Need To Know Before Filing Your 2022 Taxes

It’ll be time to file your 2022 taxes soon, and you must take advantage of every tax credit and deduction you can! Our article covers the following: • Canada Workers Benefit. • Claiming home office expenses. • The tax deduction for zero-emissions vehicles. • Return Of Fuel Charge Proceeds To Farmers Tax Credit. • Eligible Educator School Supply Tax Credit.

When should I buy life insurance?

Life insurance is something you can use at any age. Whether you’re in your 20s or approaching retirement, you can benefit from having life insurance. Our article, “When should I buy life insurance”? can help you understand: • What the two main types of life insurance – term and permanent • When term insurance is better for you and when permanent insurance is • How life insurance can benefit you at different ages • What costs life insurance can help your loved ones’ cover

Federal Budget 2023 Highlights

On March 28, 2023, the Federal Government released their 2032 budget. This article highlights the following financial measures: • New transfer options associated with Bill C-208 for intergenerational transfer. • New rules for employee ownership trusts. • Changes to how the Alternative Minimum Tax is calculated. • Improvements to Registered Education Savings Plans. • Expanding access to Registered Disability Savings Plans. • Grocery rebate. • Deduction for tradespeople tool expenses. • Automatic tax filing. • New Canadian Dental Care Plan.

British Columbia 2023 Budget Highlights

On February 28, 2023, the B.C. Minister of Finance announced the 2023 budget. We have highlighted the most important financial measures you need to know: • Tax credit changes. • Increases to the B.C Family Benefit. • Carbon tax changes. • Other important tax changes. • Healthcare and housing spending.