Whether you are decades away from retirement or if it is just around the corner, being aware of the planning opportunities will take the fear and uncertainty out of this major life event.
Blue sky your retirement plans to get clarity
As you approach retirement, preparation and planning become extremely important to help ensure that this period of your life will be as comfortable as possible. If you are like most, you have spent considerable time contemplating the type of retirement you wish for yourself.
- Is extensive travel your dream?
- Do you have an expensive hobby or two you want to take up?
- Will you stop working totally or continue to do some work on your own terms using your life experience and skills to supplement your income.
- Will you remain in your house or will you downsize to smaller, easier to care for premises? Or perhaps housing that will be more compatible with the challenges of aging?
On April 21, 2015, Finance Minister Joe Oliver tabled his first federal budget. The provisions of the budget will be of particular interest to owners of small and medium sized businesses, seniors and families with children. As well, those looking to make certain charitable donations will be encouraged by Oliver’s budget.
Below is a brief commentary on each of the key budget proposals.
For Seniors and Savers
Increase in Tax Free Savings Account (TFSA) Limit
- Effective January 1, 2015 the annual contribution limit has been increased from $5,500 to $10,000;
- As a consequence, the automatic indexing of the annual contribution limit has been eliminated;
- On April 24, the CRA announced that even though this provision is not law as yet, they will allow increased deposits to a TFSA effective immediately.
Many of us set New Year’s resolutions for ourselves and often those resolutions have to do with finances. January is the month we say, “Ok, this year I am going to save more and spend less”. This article won’t tell you how to spend less, but it will outline two government sponsored programs available to help you save for retirement or even just a rainy day! Of course these are not the only vehicles you can accumulate money with – those include anything from putting dollars under the mattress to the most sophisticated tax shelter schemes – but these two are the most popular. Read more
If you have been accumulating wealth in a Registered Savings Plan and are turning 71 this year or next, you should be aware of the decisions you have to make. The Income Tax Act says that you have to terminate your RSP’s by December 31st in the year you turn age 71. In doing so, you basically have three options: Read more
I just learned that my father-in-law was ahead of his time as a “Workamper” twenty years ago. He was your typical Prairie “snowbird” when he left his home in Winnipeg and headed south to either Texas or Florida – far away from the frigid winter months in his recreational vehicle (RV). He would often talk about doing small jobs around the RV Park while he was down south a few times a week and getting paid for it. We didn’t think much of it except that it was good to introduce additional activities into his weeks and months in the sun.
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