Author Archive for: Advisorsavvy

How to Become a Licensed Insolvency Trustee

For anyone who has filed for insolvency, including consumer proposal or bankruptcy, know that having a relationship with a Licensed Insolvency Trustee is an important step in the journey. In Canada, there are many options for debt relief programs. This can include debt consolidation loans, credit counselling or filing for insolvency. Depending on which option you decide upon will determine the amount of time that you will be enrolled, what percent of the debt you will owe back, and if you need to work with a Licensed Insolvency Trustee. What does a Licensed Insolvency Trustee do, and what certification do they go through? Let’s learn more below. This article was written in collaboration withBromwich + Smith, a dedicated team of Licensed Insolvency Trustees and Debt Relief Specialists. How do you become a Licensed Insolvency Trustee? To be eligible for admission to the Chartered Insolvency and Restructuring Professional (CIRP) Qualification Program (CQP), individuals must: LIT Certification Process Once they are accepted

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What is DeFi?

Ever wondered why nobody questions the traditional investment or loan landscape? It feels like banks have overarching power and control, permitted the privilege to dive deep into your history and reject you based on stringent policies.The world of DeFi stands up to the limitations of traditional lending. But what is DeFi lending and how does it work with cryptocurrency? Keep reading to find out! What is DeFi? DeFi is a decentralized financial system. Hang on, are we talking about Bitcoin or other cryptocurrency here? In a way, yes, but DeFi is the bigger picture. DeFi encompasses all financial services performed on a decentralized system, often a blockchain. Imagine conducting your regular day-to-day banking through Ethereum. We’re talking mortgages, personal loans, savings accounts, insurance policies, and pretty much any other financial service as an alternative to traditional banking. Your mind might wander to Coinbase and other cryptocurrency exchanges, but that’s not quite DeFi. Instead, DeFi takes on the ambitious goal of

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Financial Designations Canada

As Canadians, we take pride in our financial system and the various designations that come with it. After all, our financial system wouldn’t be possible without the experts behind it. From chartered accountant to investment advisor, these titles convey a level of professionalism and expertise that we as consumers can trust. In this blog post, we’ll explore some of the most popular financial designations in Canada and what they can offer you. We’ll also discuss how to earn these designations and the requirements involved. Whether you’re looking to earn a financial designation or learn about certifications for potential financial advisors and experts you want to hire, read on to learn more! What are financial designations in Canada? Financial designations are highly sought-after credentials in the field of finance. These special certificates and degrees allow professionals to demonstrate an advanced level of expertise in their chosen area, whether it’s corporate finance, tax planning, economics, financial analysis and more. In order to

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Living Pay Cheque to Pay Cheque and How to Stop

Living pay cheque to pay cheque is a common experience for many Canadians. In fact, the Angus Reid Institute, a non-profit organization, did a recent study on the matter. They found Canadians are feeling the financial pressure of inflation which has left little to no income after paying for necessities like groceries, gas, housing and so on. In addition, 45% of Canadians reported their financial situation has worsened in the last year. Their report also found that if monthly expenses were to increase by as little as $300, 66% of Canadians would not be able to afford the increase. Or they would have to make major changes in their lifestyle to afford the raised cost of living. As you can see, many Canadians are living pay cheque to pay cheque! While it may seem like an impossible task, there are ways to break the cycle and start saving money. In this blog post, we’ll explore some of those methodologies. Read

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Types of Investment Accounts in Canada

When you’re looking to invest your money, one of the first things you’ll need to decide is what type of account to use. After all, you can’t exactly invest your money in stocks, GICs, and more unless you have an account! There are a few different types of investment accounts available, and each has its own benefits and drawbacks. Here is a breakdown of the most common type of investment accounts in Canada. What is an investment account? An investment account is a type of financial tool that is designed to hold investments such as stocks, bonds, mutual funds and more. These accounts tend to provide a range of features and benefits to help investors manage and grow their assets over time. For example, many investment accounts offer the ability to seamlessly buy and sell securities online or through a smartphone app, with reasonable transaction fees. Additionally, many investment accounts also allow users to set automatic contributions. An investment account

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How to Report Fraud in Canada

Fraud is a big issue in Canada. Every year, it costs Canadians billions of dollars. This can be in the form of stolen money, fraudulent activities or scams. If you have been a victim of fraud, or know someone who has been, it’s important to know how to report it. By reporting fraud, you can potentially get your money back and also prevent that entity from harming someone else. While falling victim to fraud can be embarrassing and irritating, you’re not alone! Try to stay calm and be kind to yourself, then take steps to report it. In this blog post, we will outline the steps you need to take to report fraud in Canada. We will also provide information on the different types of fraud and how to protect yourself. This includes tips on identifying fraudulent activity before it happens. Read on for everything you need to know about reporting fraud in Canada! What is fraud? Fraud is defined

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4 Types of Income

Income is a critical aspect of financial stability and success. Without income, it would be a challenge to achieve financial goals. There are countless ways to earn income, but some are more common than others. In this blog post, we will explore four different types of income. Each type of income has its own unique benefits and drawbacks. It’s important to understand them all before making any decisions about your financial future. We’ll also discuss how each type of income can be taxed, so you can make the most informed choices for your situation. Why do the types of income matter? The types of income you earn matter just as much as the amount. That’s because different types of income are taxed in a specific way. Diversifying your income streams can help reduce your overall tax burden. In addition, having various income streams can provide greater financial stability so you’re not reliant on one source. For example, if you earn

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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 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 advisor?

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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 and overall better plan for tax season. 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?

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

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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Filing For 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 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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