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Advisorsavvy Blog

How To Buy A Car: A Complete Guide

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

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Life Income Funds (LIF) In Canada: A Complete Guide

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

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Locked-In Retirement Accounts (LIRAs) In Canada

We’ve talked about RRSPs (the most well-known savings account that helps Canadians save money for retirement) and RRIFs (where all that money you saved eventually goes), but now, let’s pivot to LIRAs —or Locked-In Retirement Accounts. And it’s here where employer pensions come into play. What are Locked-In Retirement Accounts (LIRAs)? Did you know: According to Statistics Canada, active membership in registered pension plans in Canada surpassed6.4million in2018. There are two main types of employer pension plans: defined benefit plans and defined contribution plans. The nature of work, however, has drastically changed in recent years. The days when you’d start with a company after graduating high school or university/college and stay there for 40 years are mostly over. Now, it’s not uncommon to hold several positions at a variety of companies over the course of a career. Career pivoting, contract work, and job-hopping are certainly more normalized than before. So if you’re fortunate enough to have a job that offers

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What Is A RRIF And How Does It Work?

Have an RRSP? Well, one day —depending on how close you are to retirement — it’ll have to become an RRIF. What do you think about when you hear the word ‘retirement‘? [If you’re daydreaming now, we’ll wait…] Certainly no more early mornings or commutes, but how about more travel? Maybe fully immersing yourself in what was once a weekend hobby like crafting, gardening, or writing. Alas, a key piece in the retirement puzzle is, of course, money. You save and save and save for it —dutifully contributing to an RRSP. Then what? That’s where RRIFs come into play. What is a RRIF? RRIF stands for Registered Retirement Income Fund. Much like its name suggests, it gives you a steady income in retirement. Even better, they’re one of the most flexible and tax-effective ways of generating income in retirement. Three reasons why RRIFs are great: Your money grows, tax-free How you invest the funds in your RRIF is totally up

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Marginal Tax vs Average Tax: Understanding Canadian Tax Brackets

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

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Guide To Tax Credits: How To Get A Bigger Tax Refund In 2021

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

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How To Retire Early In Canada

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.

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Best Dividend ETFs in Canada For 2021

A dividend ETF is an exchange-traded fund that is designed for investment in a selection of high-dividend paying stocks. These ETFs typically track a specific index that is screened to include blue-chip type companies considered to be lower risk.

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Best Investing Books For Canadian Investors

Sound investment advice can be found in the best investing books for Canadians. These are written by people who have ‘been there, done that’ in the finance and business sectors. Investment books can become your own playbook for the common sense of investing when you learn from the knowledge and experience shared.

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Tips On How To Save Money

Maximizing financial resources to make ends meet, save money, and live better is a big priority for most of us. However, that’s easy to say but sometimes harder to do for many Canadians.

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