Investing in Group RESPs?

Investing in Group RESPs?Quite possibly one of the greatest things you can do for your children’s future is to open a Registered Education Savings Plan (RESP) for them.  This specialized registered account carries several benefits that ultimately help build money towards your child’s college education. Such benefits include being entirely tax free and the ability to receive government education grants to boost your balance.  Because the cost of college is always rising it…

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Accelerating Mortgage Payments will Free up Cash for RESP, Retirement Savings

Accelerating Mortgage Payments will Free up Cash for RESP, Retirement SavingsA couple we’ll call Harry, 35, and Tina, 37, are thriving in their careers. Harry, a geologist with a large company, brings home $5,730 a month. Tina, a management consultant in the chemical industry, adds $3,880, for total monthly disposable income of $9,610 a month. They have a two-year-old child. You could say that Harry and Tina are typical Canadians. Their income, though above average, is just enough to get…

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Relief May be on the Way — Tax on Both Sides of the Border

Relief May be on the Way -- Tax on Both Sides of the BorderU.S. citizens living in Canada not only have to file Canadian tax returns reporting their worldwide income, but they also have to file U.S. tax returns reporting the same income. That’s because the U.S. imposes taxes and filing requirements based on citizenship, not residency. To make matters worse, if the U.S. citizen holds a TFSA, RESP or RDSP, these accounts are not recognized as tax-preferred by the U.S. and the…

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Must-Make Year-End Tax Moves

Must-Make Year-End Tax MovesWe may be approaching the most wonderful time of the year, but December is also when to make moves that could save you money come tax time. “Most people think of tax time as April, but it’s really all year long,” says Caroline Battista, a senior tax analyst with H&R Block Canada. “You want to be keeping your receipts all year long, but there are few things you can do at…

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How to Put Your Investments in the Right Accounts

How to Put Your Investments in the Right AccountsIt is not uncommon for individuals who have saved for some time to have multiple investment accounts. Often, they will have one in their own name, one in a holding company’s name, and at least one more registered account such as an RRSP, RESP or TFSA. The rules differ depending on age and other factors, but the key shared element among registered accounts (so long as money is not withdrawn…

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The Perils of Being House Poor

The Perils of Being House PoorYounger homebuyers don’t want to max out on their mortgage payments, according to a recent TD survey. Could it be that Gen Xers have learned a few lessons from older home owners who qualify as house poor? The survey found that Gen X Canadians overwhelmingly consider themselves “house plus” buyers who want enough flexibility in the budget to afford things like travel after their monthly payments. Just 14 per cent…

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RRSP Ages and Stages

RRSP Ages and StagesEveryone knows it’s RRSP season, but what’s less obvious is how to best direct your contributions over the years. Different ages and life stages call for different strategies. There’s an overarching theme, though: anything you can put toward your retirement is a good thing. “When it comes to contributions, it’s a journey, not a sprint,” says ?Wade Stayzer, vice president of retail banking and investment services at Ontario’s Meridian Credit…

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GIC or Savings Account?

GIC or Savings Account?I recently had two reasons to look up the going rates on GICs and savings accounts. I thought I’d share what I found with you today and raise the question: Is it worth it to put cash into a 5-year GIC when some savings accounts are paying almost as much while offering the same safety and more liquidity? Why GICs or Savings Accounts? I mentioned two reasons I was interested…

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RESP Contribution Rules For 2011

RESP Contribution Rules For 2011One of the main benefits of RESP accounts is the federal Canadian Educational Savings Grant (CESG). This grant is 20% of any eligible contributions in an RESP account. How the RESP Grant System Works Let’s say you open an RESP account for your bouncing new baby and contribute $1,000 into the account. Your financial institution will send the account and contribution information to the Canadian government for grant approval. If…

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