Author Archive for: Advisorsavvy

How To Buy A Car: A Complete Guide

Time for a new set of wheels? Maybe, you’re preparing to buy your first car, or your university-aged child has saved up for theirs. Either way, you want to buy a car. Is it one of those big purchases that can seem daunting, with a LOT of steps? Yes (sorry!) The reality? Yes, there’s a lot to the process. But if you’re able to take your time and follow each step while keeping your eyes on the prize and your own needs in check, you’ll end up with the perfect car. Let’s get started! What is the total cost of car ownership? Before diving into all of the steps of buying a car, it’s important to think about the total cost of owning a car. To be blunt: it can add up. When starting the process of buying a car, financing (either through your bank or the dealership) is typically top-of-mind. But when you’re figuring out a budget, factor in

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What Is A RRIF And How Does It Work?

Have an RRSP? Well, one day —depending on how close you are to retirement — it’ll have to become an RRIF. What do you think about when you hear the word ‘retirement‘? [If you’re daydreaming now, we’ll wait…] Certainly no more early mornings or commutes, but how about more travel? Maybe fully immersing yourself in what was once a weekend hobby like crafting, gardening, or writing. Alas, a key piece in the retirement puzzle is, of course, money. You save and save and save for it —dutifully contributing to an RRSP. Then what? That’s where RRIFs come into play. What is a RRIF? RRIF stands for Registered Retirement Income Fund. Much like its name suggests, it gives you a steady income in retirement. Even better, they’re one of the most flexible and tax-effective ways of generating income in retirement. Three reasons why RRIFs are great: Your money grows, tax-free How you invest the funds in your RRIF is totally up

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Marginal Tax vs Average Tax: Understanding Canadian Tax Brackets

Tax rate, tax bracket, marginal tax, average tax — there sure is a lot of tax-related terminology floating around, isn’t there? In our previous blog post, we discussed the ins and outs of tax credits and deductions in Canada, and how you can get a bigger tax refund. This time, we’re zooming out a little bit, tackling the differences in marginal tax vs average tax, and just what tax bracket you might fall into in the first place. This will ultimately help you better understand and plan your finances, and how/when you can claim tax credits or deductions. What is the average tax rate? The average tax rate measures your tax burden — i.e. the share of income you pay in taxes. It’s calculated by taking the total tax you paid and dividing it by your total income. Ultimately, it’s an accurate reflection of overall tax liability. What is the marginal tax rate? Simply put, your marginal tax rate is

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Guide To Tax Credits: How To Get A Bigger Tax Refund In 2021

It’s pretty hard to argue against trying to get the biggest tax refund possible. (And after the year we’ve had, don’t we all want every last bit of refund we can possibly get?) As it turns out, it’s pretty simple to maximize your return. What you do with your tax refund is a whole other conversation — paying down debt or putting it into savings are commonly recommended actions. It mostly comes down to knowing the difference between tax credits and tax deductions. After that, it’s knowing which ones apply to you. How to maximize your tax return Just grabbing your box of slips, logging onto your tax return program, and getting your tax filing out of the way is easy. As a result, you could be leaving a wide variety of tax credits and tax deductions on the table that the Canada Revenue Agency (CRA) has available to Canadians. A quick word to the wise: the Canadian government does

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Best Investing Books For Canadian Investors

Sound investment advice can be found in the best investing books for Canadians. These are written by people who have ‘been there, done that’ in the finance and business sectors. Investment books can become your own playbook for the common sense of investing when you learn from the knowledge and experience shared.

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Getting Help With Bankruptcy In Canada

For many people, the pile of debt under becomes so high that it’s hard to see a way of getting it under control. When that happens, when it becomes too much, when you no longer have access to credit and your income is not enough to manage the debt – it’s time to file for bankruptcy.

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How To Become An Advisor In Canada

For many Canadians, managing everyday finances can be a big puzzle. Sure, we know we need to save for a rainy day and for retirement. We know managing debt is important, and that a credit rating can make or break whether we get a loan. And for a good many of us, financial knowledge ends there. This, however, is where financial advisors pick up the baton. Is becoming an advisor and helping other Canadians meet their financial goals of high interest to you (no pun intended)? To become an advisor in Canada, you actually don’t need a Master’s degree in Finance or Business. You do, however, need a certain level of understanding and knowledge of investments, insurance, and financial management. Ultimately, you’ll likely need to pursue certification courses and register with a regulatory body. This primer will give you a better idea of the steps you need to take to work as an advisor in Canada. What is a financial

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How To Fix RRSP Over-Contributions

A Registered Retirement Savings Plan (RRSP) is one of the best ways to save for retirement. It offers so many long- and short-term benefits. However, it’s important to understand exactly how much contribution room you have in any given year.

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What Is Travel Insurance And Do I Need It?

You’ve booked your flight and hotel. Now all you have to do is start looking up things to do and places to eat, right? Not necessarily. To create a stress-free trip, it’s also important to consider protecting yourself from some of the pitfalls of travel. But what exactly is travel insurance, and do you need it?

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