by Larry MacDonald for Money Sense Magazine
At the start of the year, the annual contribution limit for Tax-Free Savings Accounts rose by $500, allowing Canadians to shelter $5,500 in investments from tax each year, in addition to whatever RRSP room they may have. The Conservatives plan to go even further—if the federal government balances its books, something expected by 2016, it has promised to raise the TFSA contribution ceiling to $10,000 a year. But left-of-centre policy wonks oppose expanding contribution room. They say TFSAs favour the wealthy and lifetime contributions should be capped. Could they be right?
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No matter how much we plan, things can and do go wrong. Here’s how to prepare yourself financially.
By Gail Vaz-Oxlade for MoneySense.ca
The mouse in Scottish poet Robbie Burns’s To a Mouse on Turning her up in her Nest with a Plough teaches us a lot about what it means to expect the unexpected. The truth is, no matter how much we plan, things can and do go wrong (in the poem the plough turns a mouse’s nest to mulch) causing all kinds of problems.
So the question becomes, do you have a back-up plan? Most people don’t. And yet, it is only those who take the time to create a Plan B that weather storms well.