Author Archive for: Advisorsavvy

Having a pet in your home can be a wonderful experience. Dogs can keep you active with regular walks and cats can be a great companion for the couch while you watch TV. Or, maybe you want a more exotic pet for your home, like a snake or parrot. Although pets are not free – it is an added expense for your household. In this article, we’ll review how much does a pet cost in Canada so you can make an informed decision before adopting. While the benefits of having a pet can be great, you don’t want the animal to cause financial or lifestyle problems. In fact, this was a common issue in Canada after the pandemic. People could no longer support the animals they adopted during lock down, whether it was due to rising costs of living or returning to in-person work. According to CBC, there was a spike in people surrendering their pets to animal shelters in

Many Canadians have been talking about a potential recession occurring. According to a recent survey, 54% of Canadians anticipate a recession will occur in 2024 and 32% believe Canada is already in a recession. The governing economic and political bodies haven’t announced an official recession, but there are indicators of financial trouble ahead. More specifically, high inflation and rising interest rates, both of which are apparent in Canada right now, indicate an economic downturn. With so much anticipation of a decline, you might be wondering how to survive a recession. We’ll cover details about what a recession is and tips to weather the storm with this article. Keep reading to learn more! What is a recession? A recession is defined as a short to medium period of time where notable economic decline is experienced. In more technical terms, a recession is measured as two consecutive quarters where negative gross domestic product (GDP) is experienced. During periods of recession, consumer spending

In Canada, retirees are subject to income tax. The amount they pay is dependent on the types of income they receive, their tax bracket and province or territory of residence. Retirement income from sources like pensions, Registered Retirement Savings Plans (RRSPs), Registered Retirement Income Funds (RRIFs), employment earnings, investments, and other income streams are typically taxable. However, tax credits and deductions for seniors help reduce the overall tax burden. It’s always a good idea to consult with a financial advisor or tax professional when navigating income and corresponding tax. They can provide tailored advice based on individual circumstances. But for now, we will answer the question, “Do retirees pay income tax in Canada?” in depth below. Keep reading to learn more! Do seniors have to file taxes in Canada? Seniors in Canada, like all other citizens and residents, must file taxes, if they meet certain criteria. If they have earned income in Canada, they are required to file a tax

The teenage years are the perfect time to start a side hustle. It allows teenagers to explore their entrepreneurial spirit and discover what kind of career they would like to pursue while earning some extra money. Many teens want the ease of a part-time or summer job, but others are eager for more. They want to explore sales, time management, and earning potential from a young age. Both side hustles and part-time employment will help teens acquire these life skills. There are ample opportunities for side hustles for teens in Canada, as we will explore in this article. Teenagers always want extra cash, so why not learn how to earn some independently? Learning how to earn an income of your own is a valuable life skill. Some parents have their children do chores in exchange for an allowance. Whereas others may advise their kids to find a job if cash is tight in the household. Many teenagers have become resourceful

Applying and taking out a mortgage is the most substantial financial commitment for many Canadians. In fact, buying a home is the largest purchase most people make in their lifetime. But as prime rates and inflation continue to skyrocket, this commitment comes with a lot of risk. However, the Canadian mortgage stress test attempts to mitigate this risk. This lending threshold serves as a safeguard against affordability challenges stemming from increasing rates in Canada. Whether you’re a current homeowner looking to refinance or you plan to purchase your first property in the coming years, it’s best to understand the Canadian mortgage stress test, as it’s one of the most important standards governing mortgages. But you may wonder, what the Canadian mortgage stress test entails, how and when are borrowers stress tested, and what are the criteria for passing a stress test. This article covers everything you need to know. Continue reading to find out more! Related Reading: Estate Taxes in

Variable vs fixed mortgage? That is the question! You will most likely have to answer this question before signing off on a property and obtaining a mortgage. Deciding between both options is one of the biggest dilemmas you will face when purchasing a home. This is because the decision you make now will affect you for years to come. It may also mean the difference between paying thousands of dollars in interest, or not.But, when comparing both, your deciding factors will typically boil down to two things. These are the cost and predictability of the mortgage and other economic factors. Whether you’re a first-time buyer or refinancing, we’ve got you covered with this article. Understanding the difference between variable vs fixed mortgages is vital for your financial future. Below, we explore their differences to help you make an informed decision.Keep reading to learn more! Related Reading: How to Switch Financial Advisors Variable vs Fixed Mortgage: What is the difference? Let’s

There is often a common question on every taxpayer’s mind. That is — how long does it take to receive a tax refund in Canada?Tax season is generally a stressful time, especially if you have to file your tax returns yourself. If you’re relying on your tax refund to clear up bills or add to savings or investments, you might be pressed to get it into your pocket. At Advisorsavvy, we understand how important it is to get your funds as quickly as possible. In this article, we’ll explore the general timelines surrounding tax refunds in Canada and other helpful details. Keep reading to learn more! What is a tax refund? Generally, getting a tax refund in Canada is exciting news. More money coming your way! However, when we refer to a tax refund, it simply means that you paid more tax during the year than you had to.A tax refund is a reimbursement taxpayers get for the excess taxes

Ever set up automated payments or withdrawals? That’s a strong, financially savvy move to get your finances organized. But what happens when there’s not enough money in the account? Your heart might skip a beat when you see the notification: you’ve gone into overdraft.We get it; it never feels good to see your chequing account with a negative balance. Of course, you might just transfer some of your savings into it and make up for the hit — along with paying a hefty Non-Sufficient Funds (NSF) fee, no fun.Our financial advisors here at Advisorsavvy cover this topic frequently with clients like yourselves. Budgeting properly and cash flow management can help you avoid overdraft, but there’s actually an even more bulletproof solution: overdraft protection. In this article, we’ll walk through the ins and outs of overdraft protection, how much it costs, what it offers, and how to know if it’s worth it for you.Keep reading to learn more! What is overdraft

If you are wondering how to switch financial advisors, it is probably time to switch. It is not a decision that should be entered into hastily. However, if you have been questioning your financial advisors’ services, it may be time for a change. If they are hard to get a hold of, they give unclear information or have poor follow-through, that can also be a sign it’s time to make a switch. Switching financial advisors doesn’t have to be a difficult process. But there are some financial considerations to be aware of. The hardest part will be finding a new financial advisor that you trust. Once you find a new advisor, they should be able to help you with the transition and offer an improved quality of service. For many people, their financial advisor is the first person they speak to about personal finance issues. They approach their financial advisor about divorce, health issues, and all other life changes that

In Canada, the federal government offers the employment insurance program to unemployed workers. The program aims to temporarily support your income if you are out of work. May it be due to a lay off or shortage of work. However, if you are working while claiming employment insurance, you may be wondering, how many hours can you work while on EI? If you are eligible under the Canadian EI program, you can still work part-time while receiving partial EI benefits. But once you become a full-time worker, your EI benefits will most likely cease. In this article, we will discuss how EI works. Plus, the golden question, how many hours you can work while on EI in Canada. Continue reading to learn more! What is Employment Insurance? The employment insurance program, or just EI for short, is a government program that provides income support to unemployed workers looking for jobs or those out of work for certain reasons. It was

The federal government of Canada issued a one-time grocery rebate. This rebate payment went out to qualifying Canadians on July 5, 2023. The motivation behind the rebate is to alleviate the highinflationthe country has been facing nationwide. An estimated 11 million Canadians qualified for this one-time grocery rebate. Did you find an unexpected deposit in your bank account near the beginning of July? If so, it might have been the grocery rebate. Learn more about what it is in this article. If you have been hit hard by inflation, readSurviving Inflation: Top 7 Tips. What is the grocery rebate in Canada for 2023? The grocery rebate is a one-time rebate managed and issued by the Canada Revenue Agency (CRA). The payments dispersed on July 5, 2023. This happens to be the same day as quarterly GST/HST credit payments. The federal government has been talking about relief for the high costs of groceries. This conversation has been happening for quite some

Are you worried about what you’ll do in a recession? Recessions can be scary between job loss and changes in economic climate. Lay offs occur and there are fewer employment and hiring opportunities. It does not mean it will be impossible finding a job during a recession. It just means you’ll have to be a little more diligent and practical. If you are unemployed or in a job that you are not happy in, there is hope. Recessions are not the easiest employment climates to navigate. If you do navigate it successfully you build great skills that stick with you forever. You open up, push yourself, and access your best skills and experiences. During a recession, there will be more competition for fewer positions. Continue reading to learn how to make yourself an attractive candidate despite tough economic times. Who gets laid off in a recession? It is impossible to know for certain what form a recession will take place

Whether you’re a soon to be immigrant or resident, family or individual, it helps to understand the average cost of living in Canada. This nation is well known for being one of the best countries in the world to live in. However, there is a cost for this luxury, as you will see in this article. When it comes to affordability, Canada is moderately expensive. The average cost of living in Canada for a single person is $736 per month and for a family of four, $2,323. Luckily, this article will help you discover all you need to know about the overall cost of living in Canada. Continue reading to learn more! Note: All dollar amounts in this article are Canadian dollars, unless explicitly stated. What is the average living cost in Canada per year? A single person’s average living cost in Canada is approximately $45,000 per year while couples would need at least $50,000. It is generally assumed that

Especially in the fields of real estate, stocks, and sales, a commission fee is inevitable. It’s usually in the form of a certain percentage of the sales price. For investors, it can adversely affect the total cost and profit of investments. For instance, brokers often get a commission for every transaction, sometimes for the total value of the portfolio. But when we talk about real estate, the agent is paid a commission for facilitating the property transaction. These are just a tiny segment of what commission fees entail.Read on to learn all you need to know about a commission fees in Canada! What is a commission fee? A commission fee is a service charge or fee paid to a person or entity to compensate them for offering a service.Examples of these services include completing sales transactions and offering advice to clients. The commissions are usually paid to brokers, agents, salespeople, and the like. To explain further, let’s take a look