The Tax-Free Savings Account (TFSA) was introduced in 2009 to offer Canadians an incentive to save over their lifetimes. TFSAs provide tax-free growth, flexible investment options, and easy set-up and withdrawals, making this registered account a powerful tool for financial well-being. Below are some key features.
Below are some key features:
If you are a prudent investor, then you have a financial retirement plan that will ensure you have sufficient funds for the lifestyle you envision after you stop working. What constitutes sufficient depends on your ambitions and your hobbies, and also on how long you live. People are living longer, and it's not unreasonable to think that you could live into your 90s.
It was hard to come up with a lot of positive news in 2022, at least with regards to the market. It was one of the few years when both Stocks and Bonds depreciated. This is a very rare phenomenon and one of only four years in about the last one hundred where this has happened. As I mentioned in my last newsletter, after 30 years of costs rising around 2.0% per year, we went to a scary 8.1%1 in 2022. A number of developed countries went into the high teens2. When Inflation rises, it's typically followed by Central Banks moving Interest Rates higher.
As we age, it becomes more likely that we may lose track of our finances. It could be because of physical reasons (failing eyesight, shaky hands, etc.), mental reasons (memory loss, cognitive impairment, etc.), or a little of both. It is common for someone not to seek help because of pride or fear of losing their independence and family members (the most common support system) are sometimes reluctant to step in to help.
As a result, the following scenarios often occur:
Accounting firm BDO Canada1, found that only one-third of family-owned businesses survive the transition to second generation, with just a third of these getting to the next - a mere 1 in 10 chance of the business surviving for three generations. Often, the reason is insufficient planning.
After a tough 2022, it's been nice to be able to report back that we have had a good start to the New Year with some nice gains on the market. Last year was a very tough year. Although we started out with a lot of promise going into 2022, we witnessed a full Russian invasion into Ukraine and worry about a Recession for much of the year. While we never did get the recession that so many were expecting, we did get Inflation, and a lot of it. There was fear of Rising Costs during the Pandemic and by 2022, we definitely got it.