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depending on age and other factors, but the key shared element among registered accounts (so long as money is not withdrawn…

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Confusion Aside a TFSA is Still The Best Tax Shelter in Town

Confusion Aside a TFSA is Still The Best Tax Shelter in TownFive years after their introduction, there still appears to be rampant confusion about tax free savings accounts. Not just about the cumbersome rules on replacing withdrawn funds, but about the very nature of the TFSA itself. Newcomers often end up in default TFSA plans offered by the nearest financial institution, believing they can hold nothing but interest-bearing vehicles like GICs. Since interest rates have been pitifully low over the five-year…

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How to Invest in Retirement

How to Invest in RetirementWhat happens to your RRSP when you retire? Prior to retirement, people maximize their contributions to their RRSPs, top up their children’s RESPs and put whatever is left over into their TFSAs and non-registered accounts. Once they hit retirement, the mystery about investing their savings to draw an income while unravelling these plans begins, and the biggest concern they face becomes not outliving their money. There has been a great…

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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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Mortgage First RRSP Later

Mortgage First RRSP LaterJudging by the barrage of Registered Retirement Savings Plan (RRSP) information you would think making a contribution before the March 3rd deadline is a slam dunk no matter who you are. The truth is; it doesn’t make sense for a lot of people – especially if you’re young. In most cases it’s better to pay down debt than contribute to a registered retirement savings plan. In some cases paying down…

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6 Rules for Novice Investors

6 Rules for Novice InvestorsI recently began volunteering with an organization called Girls Inc., one of whose valuable programs that teaches teen girls the basics of investing and money management. By the end of the program, the girls will be competently managing a full-blown investment portfolio. Sadly, that’s something that most adults are unable to do. Most novice investors who come to me for advice have usually been burned badly by trying to trade…

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Retirement Saving Should Be Realistic Not Idealistic

Retirement Saving Should Be Realistic Not IdealisticPlanning for retirement can be overwhelming. It requires thinking about long-term goals and it forces consideration of a more sensitive subject — one’s own mortality. An RBC study reports that only 52% of Canadian boomers actually put a plan on paper despite understanding its importance. However, they worry about it. According to a recent Investors Group survey, financial concerns affect 32% of Canadian couples and 60% of them put retirement…

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Keep the Taxman out of Your Investments

Keep the Taxman out of Your InvestmentsIf you are a novice investor in Canada, our tax system can make it very difficult to get the most after-tax growth out of your savings. This is because all of our income is taxed at different rates and, due to our progressive tax system, the more you make, the more they take. When saving to increase your financial security down the road, you need to have a very good…

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What to do with $10,000 Right Now

What to do with $10,000 Right NowFor most people, getting a windfall of $10,000-through an inheritance, a severance payment or a small lottery win on the weekly Scratch ‘N Win card-can make a huge difference in their lives. Whether you invest in your small business, save it towards a long-term goal like retirement, pay off hefty consumer debt or help your kids with their college education bills, doing so can speed up your journey down the…

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Want to Retire Early? Start Saving Now

Want to Retire Early? Start Saving NowIf you’re dreaming of an early retirement, you need to start saving at an early age, too. That can be difficult if you’re just stepping into your first full-time job, or if you’re also saving for a house or paying off a student loan. While it’s true that paying down debt and saving for a home are important, the earlier you start saving for retirement, the greater the benefits of…

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