The neighbors have a shiny new sport utility vehicle to tow their travel trailer. They take a two-week tropical vacation every winter. Their family room is equipped with the latest large screen TV and surround sound stereo system. Many people believe this is a sign of wealth. In fact, this is usually a sign of consumption.
More often than not, the above lifestyle is funded with huge amounts of debt.
Tax time is closing in on us and we know many of you will be looking for T-slips and RRSP Contribution Receipts. We'll be available if you need help tracking down any of these slips or need clarification on the Tax Implications of any transactions that you made in 2023. Many of these Tax Slips and/or RRSP Contribution Receipts will come in the mail. More recently though, a lot of companies have been sending these kinds of things electronically. If you have signed up for electronic documents with an Investment Company, you will be getting some emails about downloading statements.
These days, having a career presents many more new rewards and challenges than it ever used to. What we used to take for granted – including our work location – can sometimes change dramatically as companies continue to change and adapt to new economic situations.
This can be great for a business and its bottom line, but really tough on the employees within it. Because we never know exactly what the future holds, you may find yourself facing a job transfer at some point along your career path.
We are now getting close to that RRSP Deadline of February 29th, so it will be important to get any RRSP Contributions in before then. We have a number of options for getting these in and Natalie and I will help wherever we can. For those of you who have a Nominee Plan at Portfolio Strategies, you can use Online Banking to add to your RRSP which is a quick and easy way to add to your plan. Clients can also contribute to their Nominee Tax Free Savings Accounts using Online Banking. Just let us know if you need any guidance on this system.
Bob and Lisa are wondering just how their retirement will turn out. After all that's happened over the past few years, their RRSP accounts haven't grown as much as they had expected. Even in the best of times, they weren't saving as much as they could have been, at least for all their post-retirement desires.
The Tax-Free Savings Account (TFSA) contribution limit has increased to $7,000 (from $6,500) for 2024. This new limit means that a taxpayer who has never contributed to a TFSA and has been eligible for one since its inception will have a cumulative contribution room of $95,000. TFSAs are now a serious portfolio and investment planning alternative to making RRSP contributions. So, which is better you ask? Well, it depends…