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ARTICLES OF INTEREST

9
Feb

TFSAs aren’t just for short-term savers anymore

It’s been a decade since the TFSA was born. It’s grown up quite a bit over that time.

By Bryan Borzykowski for MoneySense.ca

It was hard to know it at the time, but February 26, 2008 has become one of the most significant dates in Canadian investing history. That afternoon, Jim Flaherty, then Minister of Finance, unveiled the Conservative party’s budget and, for the first time, mentioned the Tax-Free Savings Account. On January 2, 2009, the first TFSA was opened and $5,000—the maximum contribution limit that year—was deposited by some savvy investor.

When Flaherty introduced the TFSA, he listed a variety of ways someone might use the account. An RRSP, he said, was meant for retirement savings. A TFSA, where after-tax dollars can grow tax-free, was “for everything else in your life,” like buying a first car, saving for a first home and setting aside money for a “special project” or a personal indulgence. With contribution room only increasing by $5,000 per year for the first few years, using it to save for something made a lot of sense.

Read the rest of the article at www.moneysense.ca

12
Nov

Holiday Spending Survival Guide

Are you crazy for the holidays, spending thousands of dollars on holiday gifts, lights, entertaining, food and decorations each year? If so, you’re not alone. Many Americans feel the sting of holiday spending well into the new year. If you love to celebrate the holidays but don’t love the financial pinch you experience afterward, there are several great tricks for giving and celebrating, without breaking the bank. Read more »

12
Nov

Steps to Avoid the OAS Clawback

According to the Canadian government website, Old Age Security is the largest pension program in Canada.  OAS pays a monthly income to seniors who are age 65 and over.  The amount of the payment is not based on past income but rather how long you resided in Canada after the age of 18.  If you have turned 65 you are eligible for the maximum OAS income if you have resided in Canada for at least 40 years after turning 18 AND have resided in Canada for at least 10 years prior to receiving approval for your OAS pension.  There are some exceptions for those who don’t fully qualify based on temporary absences during that requisite 10-year period.

For the last quarter of 2018, the maximum monthly OAS payment regardless of marital status is $600.85.  Don’t get too excited as, as the title suggests, the government can clawback part or all of your OAS benefit depending on your taxable income.  As of 2018, you can earn up to $75,950 in annual taxable income (up from $74,788 in 2017) without affecting your payment.  For every dollar earned over this threshold amount however, you will be taxed (referred to as an OAS recovery tax) at a rate of 15%. Once you reach taxable income in the amount of $ 123,386 the government will have fully recovered or clawed back the entire amount of your Old Age Security. Read more »

26
Sep

How health coaching can help diabetes patients

With diabetes on the rise, how well employees manage the chronic disease should be a concern for employers, Diana Sherifali, an associate professor at McMaster University’s school of nursing, told Benefits Canada‘s 2018 Healthy Outcomes conference in May.

Since diabetes often comes with other chronic conditions like cardiovascular disease, hypertension and high cholesterol, mitigating it is all the more necessary, she said. In addition, the stress of dealing with the condition can become extreme to the point of being a precursor to moderate depression, she added. Read more »