Is the Newly Imposed Canadian Luxury Tax Impacting You?

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.

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TFSA vs. RRSP: What’s The Difference?

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.

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Fee Transparency: Know What You Are Paying For

Historically, the lack of fee transparency in the wealth management industry has been one of the greatest causes of investor discontent.

Investment fees may include any number of costs associated with the use of financial products. They may include costs of an online investment platform, brokerage commissions, transaction fees, administration fees, account fees, and custodian fees.

In the past, these fees were mostly lumped together as one item, possibly labeled simply “investment fee”. With the greater regulatory requirements for fee transparency, investment fees must now be itemized.

It is important that you know what is included in your total investment fee to determine if you are getting value for what you are paying.

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How Does Inflation Impact Your Personal Finances?

Inflation measures the rate at which the prices of goods and services increase. When inflation occurs, it can have a negative impact on the economy as the prices for basic necessities such as food, shelter and medical care are increasing, and in most cases, these increases are happening at a much faster and higher rate than the increase in wages.

So, what does this mean for your personal finances? This article will look into how inflation impacts your personal finances and what you can do to protect against it.

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