Author Archive for: Veronica

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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Tax Implications for Canadian Snowbirds

A popular lifestyle choice in retirement is to become a Canadian snowbird. This refers to individuals who live in Canada for part of the year and elsewhere for the other part of the year. But when you leave Canada for extended periods, it can affect your residency status which can have tax implications. If you’re committed to the Canadian snowbird lifestyle, don’t let your retirement bliss be disturbed by an unexpected tax obligation. Here’s everything you need to know about the tax implications of living the snowbird lifestyle in retirement. What are Snowbirds? Snowbirds refer to individuals who live in one place for half the year, and in another place for the other part of the year. Normally, Canadians choose this lifestyle to escape the winter months and enjoy a warmer climate. In addition, the lifestyle is maintained in such a way as to reduce tax burdens and maintain residency in the desired location. Many retired Canadians enjoy the snowbird

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How to Withdraw Money from TFSA

Tax-Free Savings Accounts, or TFSAs for short, are powerful financial tools available to Canadians. Those who have access to these accounts typically make routine contributions each year. Withdrawing money from TFSA accounts may become necessary if you have an unexpected expense. Or maybe you want to invest in something, like a car purchase, education, or downpayment on a home. Luckily, withdrawing money from TFSA accounts is easy – and there’s no penalty for doing so. In this article, we’ll explore how to withdraw money from a TFSA and what you need to know before you complete the transaction. What is a TFSA? The Tax-Free Savings Account (TFSA) program began in 2009 as a way to motivate Canadians to set aside money throughout their lifetime. The tax-free incentive allows individuals to earn interest, dividends and capital gains on their investments without taxation. TFSAs are registered accounts meaning they’re registered with the Canada Revenue Agency and subject to special rules. Special rules:

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Peer-to-Peer Lending in Canada

With technological advancements, the financial landscape has become more complex in Canada over the last few decades. If you wanted to obtain financing before, you would usually have to go to a traditional bank or borrow money from friends and family. Now, there are many other ways to obtain financing, one of which is peer-to-peer lending in Canada. Also known as P2P lending, this type of financing allows everyday people to act as lenders to other borrowers. This innovative system is possible through an online platform which connects buyers and sellers in a marketplace. Both borrowers and lenders benefit because each may not be in the market without peer-to-peer lending. Ready to learn more? Keep reading! What is peer-to-peer lending in Canada? Peer-to-peer lending is a type of financing where individuals lend money to other individuals. The system bypasses the traditional banking system. In other words, peer-to-peer lending allows individuals to obtain or provide financing when they otherwise may not

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Best Place to Retire in Nova Scotia

Canada is a widespread country with each province and territory possessing a unique way of living. If you’re planning to relocate when you retire, choosing a retirement destination in Canada can be an overwhelming task. But if you’re looking for an affordable place, that has beautiful scenery and offers a plethora of activities, Nova Scotia shouldn’t be overlooked. In this post, we will explore some of the best places in Nova Scotia to retire. From picturesque coastal towns to vibrant cities, there is something for everyone in this maritime province. Get ready to experience all that Nova Scotia has to offer! Preparing for retirement Overall, Canadians are pretty good about planning for retirement financially. Most start saving in their 20s and contribute more to their retirement fund as they progress in their careers and earn higher incomes. However, before you reach the standard age of retirement, 65, it can be helpful to take a step back and re-evaluate your finances.

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Are financial advisor fees tax deductible in Canada?

As Canadian taxpayers, we’re always looking for opportunities to save our tax dollars. If you have an advisor or someone else managing your finances, you might be wondering if the financial advisor fees are tax deductible. In this article, we will explore the rules surrounding financial advisor fees and tax deductions in Canada. We will also take a look at other expenses similar to financial advisor fees that you may be able to claim. Read on for more information! What are financial advisor fees? Financial advisor fees are incurred by Canadians who have opted to invest their money with a financial advisor. In exchange for their services, financial advisors charge a fee, commission or a hybrid of both. The amount and fee structure depend on various factors, including the size of the fund, the services being rendered, and the experience of the advisor. Advisory fees can range from 0.5% to 2.5% of the account value per year, which is generally

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Best Place to Retire in BC

If you’re looking for the best place to spend your golden years, you’ll want to take a look at British Columbia. The province has plenty of great places to retire, each with its own unique set of benefits.Whether you’re looking for a quiet town by the ocean or a bustling city with plenty of activities, BC has something to offer everyone.So if you’re ready to say goodbye to working life and hello to a relaxing retirement, read on for our picks for the best places to retire in BC. When can you retire in BC? Retirement age is a hot topic of conversation these days. With people living longer and healthier lives, many are wondering if they can afford to retire at the traditional age of 65. For the retirement age in BC, the answer to that question depends on a number of factors. If you’re employed in the public sector, you can generally retire at age 55 with 25

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What is a REIT?

These days, there are tons of investments available for purchase. You may have come across the term REIT, but may not know what it is or how this investment works. REIT stands for real estate investment trust. It is an asset that investors can purchase to be part of the real estate market without actually owning real estate. In this post, we’ll answer the question of what is a REIT, how it works, and what are the different types. Are you ready to learn? Let’s go! What is a REIT and how does it work? A REIT, or Real Estate Investment Trust, is a company that owns or finances income-producing real estate. Typically, REITs have a corporation or trust structure and are available for trade on major stock exchanges. The purpose of a real estate investment trust is to provide investors with exposure to the real estate market without the need to directly own or finance property. REITs typically focus

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What is the Average Net Worth by Age in Canada?

As Canadians, we often consider ourselves to be financially savvy. We save for retirement, we invest in homes and we keep a close eye on our bank statements. But how does our net worth compare to others in our age group and around the world? And more importantly, how does it change as we age? In this article, we’re taking a look at the average net worth by age in Canada. Keep reading to find out where you stand. What is net worth? Net worth is a general measure of financial health. It’s calculated by subtracting your total liabilities from your total assets. The grand total is how much you’re worth financially. For example, if someone has a house worth $200,000 and a mortgage of $100,000, their net worth would be $100,000. Assuming the individual has no other assets or liabilities to consider. This number can fluctuate from day to day, depending on factors like current investment portfolio and property

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How to Move to Canada

Relocating to Canada can be a big decision, but it can also be a great way to start fresh and experience all that this beautiful country has to offer. If you’re considering a move to Canada from the US or elsewhere, there are a few things you’ll need to keep in mind. First, you need to ask yourself, “Can I relocate to Canada? Is it worth relocating to Canada?” Second, you need to decide if relocating is the right choice for you and your family. Finally, you need to start making plans and preparations on how to move to Canada. If you’re feeling overwhelmed, don’t worry – we’re here to help! In this article, we’ll provide an overview of the process of relocating to Canada, from determining your eligibility to making the actual move. We’ll also offer some tips and advice along the way. Whether you’re just starting to research your options or you’re ready to start packing your bags,

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