Often people are focused on appointing a Power of Attorney (POA) in the event that they are unable to make their own decisions, but have you thought about guardianship? What happens if your POA is unable to make decisions on your behalf? This is where guardianship plays a role.
Any actions you take today can significantly benefit your future self. The sooner you establish a comprehensive personal financial plan that includes tax planning, the greater your long-term benefits will be.
The goal of tax planning is to minimize the amount of income tax you pay so that you may optimize your savings for retirement, as well as for other long-term financial goals such as wealth transfer and philanthropic giving.
Are you a luxury car enthusiast? Do you have a love for flying planes or driving boats? If so, you may have heard about the Select Luxury Tax Act of up to 10% that came into effect on September 1st, 2022. Luxury Tax is applicable to personal vehicles and aircraft priced over $100,000 and boats priced over $250,000, as a way to ensure people pay their fair share of taxes, as stated in section 10.1 of the 2021 Budget.
The most common goal in retirement is to be able to live off investment income free of the stress of financial uncertainty. However, there is no one-size-fits-all financial plan that works for everybody.
Some rules of thumb can provide you with guidance. The key to every retirement plan is working with a financial professional and starting your planning as early as possible.
When you first start earning an income, you often wonder what to do with your “newfound” money. You may want to put aside some money for the long-term (i.e. retirement) and also invest a portion of the money in the hopes of growing your savings for more immediate use. , The two most common savings/investment accounts you hear about are Tax-Free Savings Accounts (TFSAs) and Registered Retirement Savings Plans (RRSPs). Two very common questions about these are, “What’s the difference between a TFSA and an RRSP?” and, “Which account is right for me?”.
There are various factors that you should consider when deciding which account is best for you. You need to consider your reasons for saving if you plan to make withdrawals from the account, and your planned contribution amounts.