Author Archive for: Veronica

What is the average annual income in Canada?

Income varies greatly from person to person in Canada. According to a 2020 study by Statista, the median household income in Canada was $96,220. However, this number can be deceiving as it does not account for the vast wealth and poverty that exists across the country. Some earn well below this amount while others earn well above it which can skew the data. So what is the average annual income in Canada? In order to get a better understanding of how average Canadians fare financially, we need to take a closer look at the data. Read on to learn the ins and outs of average annual incomes in Canada! What is the average annual income in Canada? The average hourly wage for a Canadian household was $36.28 in 2020 for a full-time employee. When you multiply that by 8 hours, the average daily wage comes to $290.20, or weekly it’s around $1,451. Therefore, the average bi-weekly salary is about $2,902

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What is the clawback for OAS?

Financial security is important at any stage of life, especially retirement. One of the financial benefits Canadian retirees rely on is Old Age Security (OAS). However, there is a clawback to consider which may reduce the amount of OAS money you receive. So, what is the clawback for OAS? In simple terms, the OAS clawback is a tax that applies when recipients of the benefit surpass a certain annual income threshold. Read on to learn more about the OAS clawback, how it might affect you and what amount of tax you can expect to pay. What is Old Age Security (OAS)? The Old Age Security (OAS) pension is a government-provided monthly income for seniors. To be eligible for the OAS pension, individuals must be 65 years of age or older and legal residents of Canada. The OAS pension is not means-tested, which means that it is not based on the applicant’s income or assets. Rather, your age and residency are

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Is Bitcoin Legal in Canada?

Bitcoin was once exclusively associated with shady dealings, until it had an unexpected boom in 2010. Since then, cryptocurrencies have entered the public eye and it is a heavily debated topic in the finance and tech world. Today, you can use it to pay for various things, even your Starbucks latte. Are you still not convinced? It’s easy to be skeptical. First, crypto’s volatility is enough to make traditional investors and regular spenders squirm. Then, you have new crypto scams popping up everywhere.In this article, we’ll explore the legitimateness of Bitcoin and other cryptocurrencies in an attempt to answer the question: Is Bitcoin legal in Canada? Just because Starbucks allows crypto payments, does that mean you can use it anywhere? Well, legal and legal tender are two different things. We’ll cover Bitcoin’s legality, tax status, and more about crypto with this guide. What is Bitcoin? Bitcoin is a digital currency (better known as cryptocurrency) created with computer algorithms through a

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Mortgage Refinancing Canada

Mortgages are big business in Canada. In fact, according to the Canada Mortgage and Housing Corporation (CMHC), as of the third quarter of 2021, the mortgage market in Canada was worth $1.77 trillion. For this reason, Canadian homeowners are particularly concerned with anything and everything surrounding mortgages. But what about mortgage refinancing in Canada? If you’re a Canadian homeowner who’s looking to refinance your mortgage, it’s important to understand how the process works. In addition, it can help to understand the benefits and drawbacks of mortgage refinancing before you make the plunge. In this blog post, we’ll explore how refinancing works in Canada and what you need to know before refinancing your mortgage. Keep reading to learn more! What is refinancing a mortgage in Canada? Before diving into refinancing definitions, let’s chat about what a mortgage is. A mortgage is a type of loan that is used to purchase real property, typically a house, apartment, building or similar. The loan

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Common Law vs Marriage Canada: What are the financial implications?

A life partner adds a lot of value to our lives. Many Canadians are looking for that perfect someone and when they find them, you may want to celebrate your love by moving in together or getting married. However, marriage isn’t just about celebrating your love, it’s also a legal contract that involves the Canadian government and your finances (we know — this part isn’t very romantic!) This isn’t to say you shouldn’t get married, but you should have financial conversations with your partner before tying the knot to ensure you’re aligned. In some cases, you may find that common law is actually a better fit for you and your partner due to the differing financial and legal implications. To learn more about common law vs marriage in Canada, continue reading this guide. Common Law vs Marriage Canada Does a piece of paper really signify a loving relationship between two people? For many couples in Canada, the answer is no.

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What is the Best Blockchain Stock?

Blockchain and cryptocurrency have been all the rage over the last few years. There is a lot of hype surrounding blockchain technology and its potential uses, but what is the best blockchain stock? These investments are still highly volatile and subject to high risk, but also high reward (or high loss). However, you may still be interested in getting involved in blockchain stocks. In this post, we’ll take a look at some of the top contenders and try to figure out which one is the best investment. Keep reading to learn more. What is Blockchain? Blockchain is a decentralized form of ledger technology that allows for secure and private data storage. When compared to traditional methods, such as banks storing information on internal servers, blockchain’s unchangeable public ledger makes it a more reliable option. In addition, it provides greater security and privacy to the user which is something that’s becoming more and more important to Canadians. It’s worth noting that

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Is CPP Taxable Income?

The Canada Pension Plan (CPP) is a national program that provides retirement benefits to Canadians. The CPP is funded by contributions from both employees and employers, in addition to contributions from the self-employed. It offers various types of payments, including a retirement pension, disability benefits, and death benefits. If you receive benefits from CPP, you may be asking yourself, is CPP taxable income? The answer is yes, CPP benefits are taxable, but there may be ways to reduce your tax liability on the payments you receive. Read on to learn more about how CPP is taxed and what steps you can take to minimize the impact of taxes on your benefits. What is CPP? The Canada Pension Plan (CPP) program originally started in 1965 to combat poverty among retired Canadians at the time. Since then, it has evolved and changed to adapt to modern needs. When the program first started, it relied solely on contributions from employees, employers and the

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Best Place for Canadian Snowbirds

Every year, as the cold weather sets in and the leaves start to change colour, Canadian snowbirds from coast to coast make their annual pilgrimage south to escape the cold. Funny enough, so do Canadian geese! Whether this is your first year embracing the snowbird lifestyle or you’re looking for a new destination this winter, we compiled a list of the best places for Canadian snowbirds. Continue reading to figure out what the top locations are. What is a Canadian snowbird? A Canadian snowbird is a person who winters in a warmer climate, typically in the United States. However, Canadian snowbirds may go wherever else, but usually the reason for leaving is to escape the dreary winters. In the summer months, Canadian snowbirds often return home. These snowbirds, as they’re often called, spend anywhere from a few weeks to several months elsewhere to take advantage of the milder weather. Canadians retiring abroad are those who leave Canada all together, on

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Is OAS Taxable?

When you retire, one of the things you may be looking forward to is collecting your Old Age Security (OAS) payments. But is OAS taxable? The short answer is yes, but there are some nuances to consider. Furthermore, how much tax you pay on OAS depends on other aspects of your finances. In this blog post, we’ll take a look at the taxability of Old Age Security payments in Canada. Keep reading for more information! What is OAS? Old Age Security (OAS) is a retirement benefit available to Canadian citizens and residents. You may be eligible if you are 65 years of age or older. Plus have lived in Canada for at least 10 years after turning 18. However, if you retire to a foreign country, you must have resided in Canada for at least 20 years after turning 18 to keep receiving your OAS pension. If seniors choose to wait until they are 70 years old to start collecting

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Tax Loss Harvesting Canada

Tax loss harvesting is a helpful strategy to reduce your tax bill. However, it can be tricky to understand and navigate. Especially if this is your first time utilizing tax loss harvesting in Canada. Although, if you have capital gains for the current tax year, you won’t want to miss out. It’s not too late to reduce your upcoming tax bill either — you have until December 31 to execute your tax loss harvesting strategy. In this blog post, we’ll break down tax loss harvesting for Canadians, so you can make the most of this valuable tax strategy. We’ll cover what it is, how it works, and some additional tips and tricks. Read on to learn more. What is tax loss harvesting in Canada? A capital loss can only be used to offset a capital gain, according to Canadian tax laws. You may have incurred a capital gain by selling investments, such as stocks, bonds, real property and virtually any

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Centralized vs Decentralized Exchanges

An exchange is an organized marketplace that connects buyers and sellers. Within an exchange, parties can buy and sell assets such as currency, stocks, bonds, futures and options. Exchanges can either be centralized or decentralized. But what exactly is the comparison between centralized vs decentralized exchanges? Generally speaking, most exchanges are centralized, such as the Toronto Stock Exchange (TSX). However, with the arrival of cryptocurrency in financial markets, a new concept of decentralization has come about. In this post, we’ll explore the key differences between centralized and decentralized exchanges. By the end of this article, you’ll understand how both kinds of exchanges compare and contrast. Centralization vs Decentralization: What does it mean? Sometimes the terms centralization and decentralization describe how businesses operate. Centralization refers to companies that have one core function where all business activities flow through. On the other hand, decentralization refers to companies where various functions of the business operate autonomously and independently of one another. In many

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What is the average credit score in Canada?

Are you curious about the average credit score in Canada and how you rank? By assessing the averages across Canada, you can understand how you compare to others who are in a similar position to you. If you’re below average, it may be time to sit down and devise a strategy to increase your score. If you’re close to or above average, then keep doing what you’re doing! In this article, we’ll explore what credit scores are and how they work in Canada. From there, we’ll provide a breakdown of the average credit scores by age and province or territory. Continue reading to learn more. What are credit scores? Credit scores are a number that represent your creditworthiness. A credit score communicates whether you are a good candidate for a loan or other financing. They can determine the interest rate you pay as well, which is based on your risk level as a borrower. In addition, sometimes landlords and even

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Rental vs REIT

In Canada, it is a common investment strategy to purchase a property and rent it to a third party. By doing so, investors earn stable rental income and have the opportunity to profit on a capital gain of the property itself. Another popular investment in Canada is real estate investment trusts, or REIT for short. This asset is often publicly traded on stock exchanges and tends to yield high dividends. So which is better in the rental vs REIT debate? Both rentals and REITs have their corresponding pros and cons. The investment that is better for you depends on your preferences and what kind of investor you are striving to be. Continue reading to learn more about how REITs and rentals compare and contrast. Rental vs REIT: What are they? There are many different types of real estate investments. It can be confusing to navigate, especially if you’re new to the real estate market. Two of the most popular options

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Tax Efficient Investing Canada

There are a number of ways to invest your money in Canada. As an investor, it’s up to you to decide where to put your money with the goal of turning a profit. While profit is great for building wealth, it is often coupled with a tax bill. Taxes, among other financial and investment management fees, eat into your profits which can be frustrating after a big win. You might be wondering, is there a way to facilitate tax efficient investing in Canada? The answer is yes! To make the most of your money and minimize your tax bill, it’s important to understand your obligations and choose the right investment strategy for you. This guide provides an overview of taxes you can expect on your investments and how to maintain a tax efficient investing position with your portfolio. Tax on Investing in Canada In Canada, investment income must be classified before tax obligations can be determined. There are three main

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RRSP Tax Deduction

If you’re like most Canadians, you probably think of your Registered Retirement Savings Plan (RRSP) as simply a retirement savings account. While it is true that your RRSP can hold cash and other investments for your nest egg, it’s also a powerful tax tool. In fact, the Canada Revenue Agency (CRA) calls the RRSP the “single most important vehicle” for retirement savings. The main tax benefit of a RRSP is investment income is sheltered from tax. But another notable benefit is the RRSP tax deduction. So what is the RRSP tax deduction? And how exactly does it work? Let’s take a closer look below. What is the RRSP tax deduction? Most people are familiar with the RRSP, or Registered Retirement Savings Plan. This is a retirement savings account that you can open with a financial institution, and it offers a number of benefits, including tax advantages. An RRSP is a registered account which means it’s subject to special rules surrounding

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What to do when you get laid off in Canada

Currently, the unemployment rate is 4.9% in Canada. While the unemployment rate has recouped to pre-pandemic levels, many Canadians are still at risk of losing their job. In fact, Statistics Canada reported that 31,000 jobs were lost in July 2022. If you’re one of the thousands of Canadians who have lost their job in recent months, you may be feeling uncertain about your future – and you’re not alone! If you are worried about a layoff, or have already faced a layoff, we explore what to do when you get laid off in Canada below. This includes managing your finances, searching for a new job and seeking support from friends and family. Read on for details. What does laid off mean in Canada? In Canada, a layoff generally refers to the temporary suspension or reduction of an employee’s work hours. Although, sometimes a layoff means the employee is out of work permanently for no fault of their own. A layoff

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10 Best BMO ETFs in Canada for 2022

The Bank of Montreal, or BMO for short, is the eighth largest North American bank. BMO offers a number of exchange-traded funds (ETFs). Investors have many investments to choose from when it comes to building a portfolio. In this article, we will compare the 10 best BMO ETF products based on numerous benchmarks. These ETFs track the performance of equity markets, but there are some key differences among them. By the end of this read, you should have a good idea of which BMO ETFs are right for your portfolio and risk tolerance. What is an ETF? An exchange-traded fund, or ETF for short, is a type of investment fund that tracks a certain index or asset. They hold a basket of assets which provides broad exposure to general markets. ETFs are traded on stock exchanges and can be bought and sold like stocks. They are often seen as a good investment because they offer diversification and are usually cheaper

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How to Withdraw Money from RRSP

If you’re here, you’ve probably come across an unexpected expense or there’s something you want to invest in, such as a home or education. You may be considering a withdrawal from your RRSP to cover the cost at hand. It’s a good thing you decided to read up on RRSP withdrawals before actioning one because there are several things to consider! In this article, we’ll explore everything you need to know before making a withdrawal and how to withdraw money from RRSP accounts, if you really need to. What is a RRSP? RRSP stands for Registered Retirement Savings Plan. The account was originally introduced in 1957 as a part of the Canadian Income Tax Act. It is a special account used to save for retirement and is equipped with various tax advantages. The main tax benefit is investment income, such as capital gains and dividends, is sheltered from tax. There are restrictions on the account to encourage plan holders to

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Best Vanguard ETF

Vanguard is one of the largest and most well-known providers of exchange-traded funds in the world. With over 100 ETFs available, Vanguard offers a wide range of options for investors of all experience and risk levels. With so many choices, it can be challenging to determine which ETF you should invest in with Vanguard. In this article, we’ll take a look at the best Vanguard ETFs to help you make an informed decision. What is an ETF? An ETF, or exchange-traded fund, is a type of investment that offers the owner a way to pool their money and invest in a basket of assets. ETFs trade on stock exchanges and can be bought and sold throughout the day. This means the value of an ETF fluctuates during stock market hours. ETFs typically track an index, such as the S&P 500, but this is not always the case. ETFs offer investors several benefits, including diversification, liquidity, and lower costs. For example,

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What to Know About Being Self Employed

Despite inflation continuing in Canada, many employers are failing to pay higher salaries in line with increasing costs to their employees. Perhaps you’re considering self employment to earn a higher income using your existing skills. Or maybe you have a passion to pursue or you desire the flexibility that comes with self employment. However, there is a lot of work that goes into self employment and the burden of responsibility is undoubtedly larger. By the end of this article, you’ll gain insight into life as a self employed Canadian before you embark on the journey yourself. What is self employment? Self employment occurs when a person works for themselves as a freelancer, independent contractor or business owner, as opposed to working for an employer. A person in this state generates their own income and also covers business expenses. Because of this, self employed individuals have different taxation and face unique circumstances in their careers. Freelance vs self employed Often, freelance

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