Author Archive for: Veronica

Canada Pension Plan (CPP): A Complete Guide

There are a ton of benefits and programs available in Canada. Although, if you don’t know what they are and what’s available to you, it’s hard to take advantage of what they have to offer. Understanding the Canada Pension Plan is crucial for all Canadians in the workforce. This applies to both employers and employees. In this guide, we analyze the CPP and the QPP, how they work, eligibility, and payment calculations. Continue reading to understand all the ins and outs of the Canada Pension Plan! What is the Canada Pension Plan? The Canada Pension Plan (CPP) is one of Canada’s many retirement funds. Like any other pension plan, this is a taxable benefit. It primarily serves as an income replacement upon retirement.Although, there are other benefits available under CPP, such as the death benefit and the disability pension. However, the majority of Canadians use CPP for the retirement benefits. Once a person qualifies for the CPP retirement plan, they

Continue reading

Bonds in Canada: A Complete Guide

Understanding what bonds are about is an important part of education and growth for investors everywhere, including Canada. Bonds in Canada are great for investors looking to strike a balance between equities and fixed income.They also allow you to diversify the types of assets in your portfolio if primarily invested in stocks, ETFs and mutual funds. A bond is a type of investment product where the issuer owes the holder debt. Cash is provided to the holder from the issuer. How bonds work to fit into one’s investment strategy depends on their goals, time frame, and ability.In Canada, you can purchase bonds from the issuing party or through your brokerage account. This article will guide you through the basics of bonds and the ways to buy bonds in Canada. Continue reading to learn more! What are bonds in Canada? A bond is a loan that a bond purchaser gives a bond issuer. This could be a government or corporate company

Continue reading

5 Best Bitcoin ETFs in Canada

Are you looking for ways to add Bitcoin to your investment portfolio without worrying about cold wallets and public keys? Investing in one of the best Bitcoin ETFs in Canada is a great work around. With these financial instruments, you can invest in Bitcoin without actually buying the cryptocurrency. Bitcoin ETFs are a new type of financial product that was introduced in Canada in the year 2021. Canada remains at the forefront of releasing the first-ever Bitcoin ETF in North America, as a way to invest in the largest cryptocurrency without using a crypto exchange. These crypto investment products provide investors with everything they need to know about Bitcoin while maintaining a certain degree of transparency and liquidity.Let’s take a look at some of the best Bitcoin ETFs in Canada and their various features below! What is a Bitcoin ETF? A Bitcoin ETF is an exchange-traded fund that tracks the value of Bitcoin on any market exchange platform. Sometimes Bitcoin

Continue reading

Top 10 Mutual Fund Companies in Canada

Are you trying to grow your wealth and reap financial success with the best of the best? Pay close attention to the top 10 mutual fund companies in Canada that will be revealed in this article. Mutual fund companies in Canada are a great investment idea. They allow you to invest and diversify your portfolio effectively. With mutual funds, you can trust a group of specialists to manage your cash and generate returns on your behalf. In this article, we will introduce you to the top 10 mutual fund companies in Canada. You will get to know the leading players within the industry and learn what they provide to investors. Keep reading to find out more! What is a mutual fund company? A mutual fund company is a trust that pools money from investors to allocate across diverse financial instruments. A mutual fund invests in bonds, stocks, short-term debt, securities, and more. Mutual funds are actively managed, meaning that investments

Continue reading

DIY Debt Solutions

With rising costs due to inflation and turbulent times, many Canadians are struggling with their finances. You may have found yourself in more debt than you ever imagined. You may simply be overspending on non-essentials. Or, maybe you incurred a financial emergency and are still recovering. If you want to get a grasp on your debt, we will explore realistic DIY debt solutions in this article. Canadians have a range of debts — car loans, mortgages, credit cards, student loans, lines of credit and personal loans. With rapidly increasing interest rates, you probably have felt the squeeze. In fact, many have been feeling the squeeze in Canada. Just last week, an analysis presented by the Canada Mortgage and Housing Corporation found that Canada’s household debt is the highest out of all G7 countries. Furthermore, about 75% of the debt is attributable to mortgages. Are you looking for solutions to help you stay on track with your wide range of bills

Continue reading

Will seniors get a raise in 2023 in Canada?

Many seniors in Canada rely on government assistance in their retirement and old age. These funds help seniors pay for their cost of living expenditures. But in the last few years, inflation has wreaked havoc on the wallets of Canadians of all ages. However, seniors are often hit harder since they don’t always have a way to bring in more money like their youthful counterparts. So, the question becomes, will seniors get a raise in 2023 in Canada? By the end of this article, you’ll understand where you can expect a raise in your government benefits. Continue reading to learn more! What are the 2023 senior benefits in Canada? Provincial and territorial governments have benefit programs for seniors. These programs are aimed at helping senior citizens live a decent life in their old age. There are federal programs that also help these senior citizens to retire comfortably. Top of the list is the Old Age Security (OAS), Canada Pension Plan

Continue reading

Cash ETF Canada

Ready to unlock the full potential of your savings and investments? Looking to level up your financial game? You should check out cash ETFs in Canada! You have probably come across the term exchange-traded funds, or ETFs for short, at some point. They are not just some passing trend. They are a popular investment option here in Canada and for good reason. The cash ETFs in Canada come with tons of benefits that can boost your confidence in your investments. First off, ETFs are known for their low costs compared to mutual funds — but it doesn’t stop there. Get ready as we’re about to uncover more exciting details and benefits of these cash ETFs in Canada. Let’s get started! What is a Cash ETF in Canada? Before we explore the world of cash ETFs in Canada, let’s take a step back and get a clear understanding of what cash ETFs are. What is an Exchange-Traded Fund (ETF)? Exchange-traded funds

Continue reading

Best Bank for Newcomers in Canada

Without a doubt, it is a difficult task for newcomers to find the right financial services in a new banking environment. The procedures are entirely different from what you’re used to and it can be challenging to know what to expect. If you are one of the many newcomers to Canada, you have more and better choices today. Each newcomer bank option on the list provided in this article comes with benefits such as no fees, free online transfers, or unlimited free transactions. Before choosing the best bank for newcomers in Canada, it is important to consider which of the branches are closer to your home or place of work. This includes finding out their daily hours and if they offer some of the best credit cards in Canada as well. Take a moment to evaluate the information in this article and you’ll find the best bank in no time! Banking Considerations for Newcomers to Canada Canada is a secure

Continue reading

How much will CPP and OAS increase in 2023?

In the past few years, inflation has ran rampant in Canada and other parts of the world. As a result, the purchasing power of Canadians has decreased, including for seniors who rely on benefits like the Canada Pension Plan (CPP) and Old Age Security (OAS). Fortunately, these programs offer increases to keep up with inflation. Continue reading to determine how much will CPP and OAS increase in 2023! A Brief Overview of CPP and OAS CPP is short for the Canadian Pension Plan, while OAS means Old Age Security. These terms refer to senior and retirement benefits open to people of a certain age bracket and work status. But, they are often mistaken for each other.It is important to note they do not mean the same thing and do not apply interchangeably. A lack of understanding of these programs may lead to faulty decision making. Thankfully, we are here to set things straight. Let’s take a closer look at each

Continue reading

Average Retirement Age in Canada

There are a lot of things to consider for retirement in Canada. For instance, how much you want to save for retirement, when you want to retire, where you want to retire, and how much your lifestyle will cost in retirement. All of these considerations can be quite exhausting, especially if you’re not sure which to consider first. In this article, we’ll explore some averages related to retirement, specifically the average retirement age in Canada.If you’re trying to figure out what the ideal retirement age is for you, continue reading! What is the average retirement age in Canada? Retirement is something many Canadians strive for! Although, it is a challenging feat to accomplish for various reasons. For starters, retirement is expensive no matter which way you slice and dice it. Stemming from the expensiveness is the time and resources to save enough to retire. Let’s take a look at some statistics regarding retirement in Canada. For many Canadians, the retirement

Continue reading

Self Employed Tax Deductions Canada

Self employed individuals run their own businesses, stimulate the gig economy, and add a personal touch to the Canadian marketplace! Without them, we might not have the unique and dynamic products and services we have today. Although, self employed people of Canada definitely feel the effects of more burdens – mainly from a tax and administrative perspective. Much more tracking of the ins and outs of money is necessary when self employed. The silver lining is there are tons of self employed tax deductions in Canada. But if you don’t know what they are, you can’t track and take advantage of them. Below, we will explore what self employed means and provide details about the tax deductions available to you in Canada. By the end of this article, we hope you can reduce your tax payable! What does self employed mean? Self employed means someone owns and operates a sole proprietorship. Often referred to as persons who “work for themselves.”

Continue reading

Carbon Tax Rebate

In Canada, we’re fortunate to have access to an array of benefits. One of these benefits is the carbon tax rebate, better known as the climate action incentive payment. This program originally started as a tax credit that could be claimed on your tax return, but became a tax free payment a few years ago. In this article, we’ll cover all the details of the carbon tax rebate, including eligibility, payment amounts, and how to claim the benefit. Continuing reading to learn more! What is the carbon tax rebate? The carbon tax rebate is a benefit available to Canadians in certain provinces and territories. It is more commonly known as the climate action incentive payment, or CAIP for short. The program offers a tax free payment to individuals and families to offset the cost of federal pollution pricing.It is paid quarterly and enrollment is typically automatic. If you received a strange deposit to your bank account recently from the Canada

Continue reading

Does everyone get the climate action incentive payment?

The climate action incentive is a new benefit program available to Canadians. It is designed to subsidize the cost of climate change incentives as implemented by the federal government. The payment is sent to Canadians quarterly, usually in the form of direct deposit. Generally speaking, the eligibility criteria of the CAIP payment is quite broad. So does everyone get the climate action incentive payment? Who is eligible and who’s not? Continue reading to find out more! What is the climate action incentive payment? The climate action incentive payment is a tax-free amount paid to individuals and families. The program started as a refundable tax credit in 2021. However, it has since evolved into a quarterly benefit which began in July 2022. The climate action incentive payment helps offset the cost of federal pollution pricing. At present, the CAIP payment is only available to residents of Alberta, Manitoba, Saskatchewan and Ontario. But starting in July 2023, the CAIP will also become

Continue reading

Do you get severance pay when laid off in Canada?

Whether it’s you, your spouse, uncle, or friend — layoffs could affect any Canadian. Just this year, Google laid off 2,000 Canadian employees, while Cineplex laid off 5,000. Then there are entire industry-wide layoffs amid economic crises like COVID-19.Forbes shares that, for many, losing work is akin to losing identity, bringing tons of mental health struggles as lingering effects.But one thing certainly helps lighten the blow of a disappeared pay cheque: a bulk pay cheque, aka severance. Fortunately, severance pay can help, but not everyone knows the answer to the question, do you get severance pay when laid off in Canada. This is an area where Canadian labour laws are much more representative for the employee than in the USA, where companies can terminate for pretty much no reason and legally enforce no-termination pay clauses. So, do you get severance when laid off in Canada? Yes and no — it depends on your place of work, time spent working there,

Continue reading

When Does OAS Change to Age 67?

The Old Age Security program is a pillar of the public retirement benefits in Canada. Alongside the Canada Pension Plan and Guaranteed Income Supplement, Canadians have access to a reasonable, government provided income in their retirement and senior years. However, in the mid 2010s, there were some proposed changes to the OAS program, specifically the age requirement. This article will answer the question, when does OAS change to age 67? Continue reading to find out more. An Overview of Old Age Security The Old Age Security program provides a monthly payment to Canadians who are in their 60s. OAS works alongside the Canada Pension Plan (CPP) and Guaranteed Income Supplement (GIS) programs. Together, these three programs support retired, elderly Canadians. The Old Age Pensions Act was originally created in 1927. The legislation was established to address poverty in older Canadian populations at the time. In 1951, it was replaced by the Old Age Security Act and the Old Age Assistance

Continue reading

How to Short a Stock in Canada

Short selling has become a hot topic in the past few decades. The hype likely started with the infamous subprime mortgage short, executed by Michael Burry and Charlie Ledley, as portrayed in the finance film, The Big Short. However, they were not the first to get rich off of short selling, nor will they be the last. On the other hand, long selling investors can get rich off short selling too through a short squeeze. A recent example of this was Gamestop. Right now, some might be interested in learning how to short a stock in Canada amidst economic instability. In fact, there has been a spike in short sells of the TD stock which might pique certain investors interest. Ready to learn more? Continue reading to understand how to short a stock in Canada. What is short selling? Short selling is the process of betting against a certain stock or investment’s performance with the objective of profit. In other

Continue reading

Tax Credit vs Tax Deduction in Canada

When completing your tax return, you’ll likely notice the terms tax credit and tax deduction. But what is the difference between tax credit vs tax deduction? In short, one reduces your taxable income whereas the other reduces your tax liability. However, there are other nuances to consider, which are described below. Continue reading to learn more about the unique differences between tax credits vs tax deductions in Canada. What is a tax deduction? Tax deductions are eligible amounts that reduce your net income for tax purposes. Normally, your net income is calculated first, then tax deductions are taken off the total. This step comes before tax credits in the calculation process. What is an example of a tax deduction? Here are some common examples of tax deductions in Canada: What expenses are tax deductible in Canada? There are a wide range of expenses that are tax deductible. If you’re self employed, you can usually deduct business expenses against your income

Continue reading

What is negative equity?

You’ve likely heard of the term equity, but what does it mean when it’s negative? In basic terms, negative equity occurs when the value of debt is greater than the value of the asset attached to it. As you can imagine, negative equity can be problematic and can impact other areas of your personal finances. If you’re ready to learn more, continue reading to understand what negative equity is and how you can resolve and avoid it. Negative Equity Defined Negative equity is defined as a financial situation where the value of an asset is less than the debt against it. In other words, it’s the opposite of net worth. A common example is with car loans. If you buy a new car with a loan, the car can depreciate rapidly. As a result, the value of the car could drop lower than the balance owing on the loan. However, negative equity can occur with any asset that has debt

Continue reading

Asset Rich and Cash Poor: What Does it Mean?

You may have heard the term “asset rich and cash poor” at one point or another. In simple words, it’s the financial position where one owns a lot of assets, but has little cash at their disposal. You might be wondering why this is a problem. After all, doesn’t everyone want to own lots of assets? In theory, yes, but cash reserves shouldn’t be neglected during the process of acquiring assets. Cash allows us to pay for our daily expenses, like food, shelter and clothing. It is also an invaluable tool in times of crisis, such as an unexpected home repair or getting out of a tricky situation while traveling. If your cash is locked up in assets, it can be challenging to meet these immediate needs. In this article, we’ll explore the meaning of asset rich, cash poor in depth and how to overcome it. Continue reading to learn more! What does “asset rich and cash poor” mean? Asset

Continue reading

10 Cheap Things to Do this Summer in Canada

Inflation has wreaked havoc on all of our wallets recently. With rents, interest rate hikes, and even the price of groceries skyrocketing, you may wonder if anywhere in Canada is affordable to live anymore — much less enjoy a night out or any sort of entertainment.Should you resign yourself to a no-splurge, no-fun social or family life for the foreseeable future? We’re here to share how you can still have fun while being smart with your money. In this article, we’ll explore 10 cheap things to do this summer in Canada. But before we get into our list of cheap things to do this summer, consider seeing a financial advisor. It’s like extra padding you could use to protect you from getting jerked around by high costs and shallow budgets. Sometimes, we just need a little perspective to plan our budgets — for both necessary expenses and fun expenses. Don’t worry; you can still hit up the movie and buy

Continue reading

You’re in the right place for financial advice.

Getting started is easy, fast and free. Match to your perfect advisor now.

Get 12 Smart Questions Everyone Should Ask Their Financial Advisor

Download these questions plus more with the Advisorsavvy community newsletter – subscribe now and enjoy a wealth of knowledge.

Subscribe now and get 12 Smart Questions Everyone Should Ask Their Financial Advisor