Advisorsavvy Blog

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

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

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.

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.

It seems everyone, everywhere has been affected in some way – big or small – by the COVID-19 pandemic. Many people are feeling at the mercy of forces they can’t control, especially concerning personal finances.

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.