Advisorsavvy Blog

Despite inflation continuing in Canada, many employers are failing to pay higher salaries in line with increasing costs to their employees. Perhaps you’re considering self employment to earn a higher income using your existing skills. Or maybe you have a passion to pursue or you desire the flexibility that comes with self employment. However, there is a lot of work that goes into self employment and the burden of responsibility is undoubtedly larger. By the end of this article, you’ll gain insight into life as a self employed Canadian before you embark on the journey yourself. What is self employment? Self employment occurs when a person works for themselves as a freelancer, independent contractor or business owner, as opposed to working for an employer. A person in this state generates their own income and also covers business expenses. Because of this, self employed individuals have different taxation and face unique circumstances in their careers. Freelance vs self employed Often, freelance

A popular lifestyle choice in retirement is to become a Canadian snowbird. This refers to individuals who live in Canada for part of the year and elsewhere for the other part of the year. But when you leave Canada for extended periods, it can affect your residency status which can have tax implications. If you’re committed to the Canadian snowbird lifestyle, don’t let your retirement bliss be disturbed by an unexpected tax obligation. Here’s everything you need to know about the tax implications of living the snowbird lifestyle in retirement. What are Snowbirds? Snowbirds refer to individuals who live in one place for half the year, and in another place for the other part of the year. Normally, Canadians choose this lifestyle to escape the winter months and enjoy a warmer climate. In addition, the lifestyle is maintained in such a way as to reduce tax burdens and maintain residency in the desired location. Many retired Canadians enjoy the snowbird

Tax-Free Savings Accounts, or TFSAs for short, are powerful financial tools available to Canadians. Those who have access to these accounts typically make routine contributions each year. Withdrawing money from TFSA accounts may become necessary if you have an unexpected expense. Or maybe you want to invest in something, like a car purchase, education, or downpayment on a home. Luckily, withdrawing money from TFSA accounts is easy – and there’s no penalty for doing so. In this article, we’ll explore how to withdraw money from a TFSA and what you need to know before you complete the transaction. What is a TFSA? The Tax-Free Savings Account (TFSA) program began in 2009 as a way to motivate Canadians to set aside money throughout their lifetime. The tax-free incentive allows individuals to earn interest, dividends and capital gains on their investments without taxation. TFSAs are registered accounts meaning they’re registered with the Canada Revenue Agency and subject to special rules. Special rules:

With technological advancements, the financial landscape has become more complex in Canada over the last few decades. If you wanted to obtain financing before, you would usually have to go to a traditional bank or borrow money from friends and family. Now, there are many other ways to obtain financing, one of which is peer-to-peer lending in Canada. Also known as P2P lending, this type of financing allows everyday people to act as lenders to other borrowers. This innovative system is possible through an online platform which connects buyers and sellers in a marketplace. Both borrowers and lenders benefit because each may not be in the market without peer-to-peer lending. Ready to learn more? Keep reading! What is peer-to-peer lending in Canada? Peer-to-peer lending is a type of financing where individuals lend money to other individuals. The system bypasses the traditional banking system. In other words, peer-to-peer lending allows individuals to obtain or provide financing when they otherwise may not

Canada is a widespread country with each province and territory possessing a unique way of living. If you’re planning to relocate when you retire, choosing a retirement destination in Canada can be an overwhelming task. But if you’re looking for an affordable place, that has beautiful scenery and offers a plethora of activities, Nova Scotia shouldn’t be overlooked. In this post, we will explore some of the best places in Nova Scotia to retire. From picturesque coastal towns to vibrant cities, there is something for everyone in this maritime province. Get ready to experience all that Nova Scotia has to offer! Preparing for retirement Overall, Canadians are pretty good about planning for retirement financially. Most start saving in their 20s and contribute more to their retirement fund as they progress in their careers and earn higher incomes. However, before you reach the standard age of retirement, 65, it can be helpful to take a step back and re-evaluate your finances.

As Canadian taxpayers, we’re always looking for opportunities to save our tax dollars. If you have an advisor or someone else managing your finances, you might be wondering if the financial advisor fees are tax deductible. In this article, we will explore the rules surrounding financial advisor fees and tax deductions in Canada. We will also take a look at other expenses similar to financial advisor fees that you may be able to claim. Read on for more information! What are financial advisor fees? Financial advisor fees are incurred by Canadians who have opted to invest their money with a financial advisor. In exchange for their services, financial advisors charge a fee, commission or a hybrid of both. The amount and fee structure depend on various factors, including the size of the fund, the services being rendered, and the experience of the advisor. Advisory fees can range from 0.5% to 2.5% of the account value per year, which is generally

If you’re looking for the best place to spend your golden years, you’ll want to take a look at British Columbia. The province has plenty of great places to retire, each with its own unique set of benefits.Whether you’re looking for a quiet town by the ocean or a bustling city with plenty of activities, BC has something to offer everyone.So if you’re ready to say goodbye to working life and hello to a relaxing retirement, read on for our picks for the best places to retire in BC. When can you retire in BC? Retirement age is a hot topic of conversation these days. With people living longer and healthier lives, many are wondering if they can afford to retire at the traditional age of 65. For the retirement age in BC, the answer to that question depends on a number of factors. If you’re employed in the public sector, you can generally retire at age 55 with 25

As Canadians, we often consider ourselves to be financially savvy. We save for retirement, we invest in homes and we keep a close eye on our bank statements. But how does our net worth compare to others in our age group and around the world? And more importantly, how does it change as we age? In this article, we’re taking a look at the average net worth by age in Canada. Keep reading to find out where you stand. What is net worth? Net worth is a general measure of financial health. It’s calculated by subtracting your total liabilities from your total assets. The grand total is how much you’re worth financially. For example, if someone has a house worth $200,000 and a mortgage of $100,000, their net worth would be $100,000. Assuming the individual has no other assets or liabilities to consider. This number can fluctuate from day to day, depending on factors like current investment portfolio and property

Relocating to Canada can be a big decision, but it can also be a great way to start fresh and experience all that this beautiful country has to offer. If you’re considering a move to Canada from the US or elsewhere, there are a few things you’ll need to keep in mind. First, you need to ask yourself, “Can I relocate to Canada? Is it worth relocating to Canada?” Second, you need to decide if relocating is the right choice for you and your family. Finally, you need to start making plans and preparations on how to move to Canada. If you’re feeling overwhelmed, don’t worry – we’re here to help! In this article, we’ll provide an overview of the process of relocating to Canada, from determining your eligibility to making the actual move. We’ll also offer some tips and advice along the way. Whether you’re just starting to research your options or you’re ready to start packing your bags,

Residents of Canada are fortunate to have access to some of the best places in the world to live. While there are many locations throughout the country that offer a high quality of life for a reasonable price, some areas are more affordable than others. If you’re looking for the cheapest place to live in Canada, here is a list of the towns and cities that fit the bill. Keep in mind that when it comes to finding the perfect place to call home, everyone’s needs and preferences vary. Be sure to do your own research before making a final decision. Cost of living increase in Canada in 2022 According to Numbeo, the cost of living in Canada is quite reasonable. The nation is sitting in 26th place on the list of most expensive countries. When compared to the United States, Canada is definitely more affordable. Of course, the cost of living varies from place to place. But on average,

Most have heard of financial advisors, but what exactly is a fee only financial planner? As the name suggests, fee only planners are compensated for their services through a flat fee. As opposed to a percentage, commission or hybrid model. Fee only financial planners offer similar services to other professionals. To learn more about fee only financial planners, what they do and how much they cost, continue reading below. What does a financial planner do? Using your short and long term financial goals, a financial planner helps you create a plan to meet them. A fee only financial planner offers the same services as any other financial advisor does. Your current debt, household income and timeline will all be considered when creating a plan. Common financial goals could be purchasing a home, investing for retirement, and setting aside funds for your children’s education. To meet these goals, a financial planner may devise a strategy to pay off debt, allocate retirement

As Canadians approach retirement age, it is helpful to consider what your income will be. There are two popular government benefits in Canada available to individuals aged 60 or older. They are the Canada Pension Plan and Old Age Security. But what exactly are these programs and what’s the difference between CPP vs OAS? You may also be wondering if you’re only eligible for one program, or both. Continue reading below to learn more about each program and how they differ. What is the Canada Pension Plan (CPP)? The Canada Pension Plan, or CPP for short, is a retirement pension available to Canadians. The plan pays out a monthly, taxable benefit meant to replace part of income upon retirement. Individuals who are eligible for CPP receive the payment for the rest of their life. How does the Canada Pension Plan work? Canadians make contributions to the Canada Pension Plan throughout their life. If you’re an employee, contributions go to the

With inflation, rising cost of living and other economic constraints, Canada debt is becoming a concern. You might be in the process of a personal debt review and be concerned with your debt amount. The reasonability of debt load depends on many personal finance factors. Continue reading to learn more about assessing your debt. How much debt does the average Canadian have? Excluding mortgage debt, the average Canada debt per individual is $20,739. By this logic, the average household debt in Canada is about $41,500. When you factor in Canada mortgage debt, the average Canadian is carrying about $75,000. That’s a high amount for average Canadian debt! Keep in mind that debt load depends on many variables. A big one is where you live in Canada. Cities like Vancouver and Toronto have higher costs of living than smaller cities and towns. In addition, your life’s circumstances can alter your debt load, such as recently losing a job or experiencing a

Canadians are fortunate to have access to a variety of registered savings accounts. These types of accounts have various financial and tax benefits. One of the plans available is the Registered Disability Savings Plan. The purpose of this plan is to provide financial relief to individuals living with disabilities. They incur additional barriers and costs which other taxpayers do not face. To learn more about the inner workings of an RDSP, continue reading below. What is the Registered Disability Savings Plan (RDSP)? The Registered Disability Savings Plan, or RDSP for short, is a financial plan intended to help individuals with disabilities and their caregivers save money and enhance financial security. RDSPs are only available to people who are eligible for the disability tax credit (DTC). Unlike with a Registered Retirement Savings Plan (RRSP), contributions to an RDSP are not tax deductible. You can contribute until the end of the year in which the beneficiary turns 59. Withdrawals from an RDSP

If you’re approaching retirement, or planning in advance of your retirement, you might be wondering how to calculate CPP payments. Afterall, many Canadians rely on the Canada Pension Plan for income when they retire. The amount you receive depends on various factors, such as how much you’ve earned in your life and how much you paid into CPP. To learn more about how to calculate CPP benefits, continue reading below. What is the Canada Pension Plan (CPP)? The Canada Pension Plan (CPP) is a retirement pension offered by the Canadian government. It is a monthly, taxable benefit that replaces part of your income upon retirement. If you qualify for CPP, you’ll receive the benefit for the remainder of your life. To calculate CPP, the government evaluates your career in Canada. The Canada Pension Plan Act was enacted in April 1965. The CPP program has been benefiting Canadians ever since. How about the Quebec Pension Plan (QPP)? The Quebec Pension Plan

As a business owner, you are likely aware of numerous tax benefits available to you. The main one is being able to deduct expenses against the income you earn. But did you know you can also claim a tax deduction for depreciation? Yes, it’s true! The deduction is called Capital Cost Allowance, or CCA for short. If your business has depreciable property, such as a building, vehicle or equipment, it wears down over time. For accounting purposes, this is known as depreciation. However, there is also a tax deduction available for the same purpose. Continue reading to learn more about Capital Cost Allowance in Canada. What is a Capital Cost Allowance (CCA)? The Capital Cost Allowance definition is a tax deduction available for depreciable property. When you acquire an asset, such as a car, building or software, it wears out or becomes obsolete over time. Owning an asset is a benefit, but also carries risks with ownership. The Canada Revenue