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Advisorsavvy Blog

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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Getting Help With Bankruptcy In Canada

For many people, the pile of debt under becomes so high that it’s hard to see a way of getting it under control. When that happens, when it becomes too much, when you no longer have access to credit and your income is not enough to manage the debt – it’s time to file for bankruptcy.

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