Advisorsavvy Blog

On top of looming winter, Canadians have to deal with tax season this time of year. While taxes and dealing with your finances can be bland, we’re here to make it a little easier and understandable. Since finances are already at the forefront of Canadian’s minds right now, it’s an optimal time to review and adjust your general finances as well. In this year-end financial checklist, we offer a comprehensive list of what to consider on an annual basis. The importance of an annual financial check-in Most people have financial goals they’re trying to achieve. These could be short-term or long-term. For example, saving for your next vacation is likely a short-term goal. Whereas saving for a downpayment on a home or retirement may be a long-term goal. Regardless of your specific goals, an annual financial check-in is important for tracking your progress. By revisiting your finances yearly, you can review how you’re doing and reassess your goals. Perhaps you

As Frank Sinatra sings about love and marriage, “you can’t have one without the other.” These days, however, it’s important to also add “make sure you’re on the same page about finances before getting hitched” to the mix. Sure, it’s not the most romantic of topics, but having an open and honest dialogue about money matters before the big day can go a long way in building a successful marriage. And money is certainly at the top of mind for coupled-up Canadians. According to RBC’s Love, Money & Marriage Poll from the summer of 2021, 88% of respondents said: “having similar financial goals and habits and also being aligned on how to spend and save money were deemed to be important for a healthy long-term relationship.” At the same time, 32% of respondents found it hard to talk about finances with their partners. 32% were also not comfortable discussing each other’s current financial situations. To top it all off, 47%

Love your home so much that you want to take extra care to make sure it’s absolutely perfect? Or maybe you’re in a bit of a fixer-upper situation, tackling cabinetry and bathroom fixtures straight out of 1995? Either way, if you have a home renovation in mind, we’re here to look at all the ways you can finance it. Haven’t checked out our complete guide to the costs of home renovations? Be sure to do so! For this article, let’s start by revisiting some of the basic points of project costs. How much will a home renovation cost? Whether a small bungalow in Halifax, a bay-and-gable home in Toronto, or a west coast Vancouver Special, the cost of home renovation is going to depend on a variety of factors.Some of these include: The size/age of your house Who you’re planning on hiring for the job (professional or handyman friend) How fast you want them to work If you’re confident in

Did you know that, according to a HomeStars survey, almost three-quarters (74%) of Canadian homeowners planned on improving their homes in 2021? Many Canadians have transitioned to fully remote work, meaning they’re spending more time enjoying their homes — no doubt coming across rooms and features that need sprucing up. HomeStars found that 54% of homeowners were planning on improving their outdoor space this year, with 29% citing that they want to better enjoy the space. Other top renovation projects include bathrooms (32%), kitchens (23%), basements (17%), and appliance repair/replacement (12%). Another big reason why Canadians are renovating? The desire to age in place. 79% of respondents said they are planning on staying in their homes as they continue to age, and 50% said they were renovating to ensure they could do so. And while the recent rush to renovate even caused lumber shortages/price increases, homeowners have been sprucing up their homes for decades — and they’ll continue to do

We spend most of our lives working and saving our hard-earned money. And we do that so we can retire, comfortably. Therefore, that nest egg is there to help us live our retirement in the way that we want.

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

We’ve been taking a good look at accounts designed with retirement in mind. First, we reviewedRRSPs(the most well-known savings account that helps Canadians save money for retirement), followed byRRIFs(where all that money you saved eventually goes to give you income in retirement). We recently featured Locked-In Retirement Accounts (LIRAs), an account for your employer pension if you leave your company or end up laid off. If you’re wondering whether LIRAs operate in a similar way as this RRSP-to-RIFF pipeline, you’re in luck — they do! Introducing Life Income Funds, or LIFs. What is a Life Income Fund (LIF)? It’s not uncommon these days to hold several positions at a variety of companies over the course of a career. Pivoting career paths, taking on contract work, and hopping between jobs has become totally normalized. That said, Statistics Canada reports that active membership in registered pension plans in Canada surpassed6.4million in2018. Fortunate enough to have a job that offers a pension? When/if

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. 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? Simply put, your marginal tax rate is

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

Supplementing any personal savings and possible employer pensions, the Canada Pension Plan (CPP) provides an ongoing revenue stream in later years.

With mortgage rates at all-time lows, many Canadians are considering the leap into becoming homeowners. Let’s take a look at buying a house in Canada, the financial considerations, and if it makes sense for you.

In order to retire early, you need to assess what you need your retirement savings to do and what you want your money to do. Necessary funds include those that cover your basic living expenses.

Because most people don’t like to contemplate their own mortality, estate planning is often a neglected aspect of financial planning.

Credit scores are one of the factors lenders will consider when looking at your financial situation. That could affect your ability to buy or lease a car, qualify for a mortgage, or get more advantageous loans.