TFSA

How to get a bigger benefit from your RRSP contribution

Q. I am a hairdresser and my retired clients are telling me not to contribute to RRSPs because of all the tax they have to pay on withdrawals. Instead, they say I should contribute to a TFSA because the withdrawals are tax-free. What should I be doing? –Julie  A. Hi Julie. This may sound surpris ...

Is an RRSP loan a good idea?

Q. My bank is currently offering an RRSP loan for $15,000. According to their calculator, I would receive a rebate of $6,750 for that contribution. If I spread the loan over 5 years, I pay $275 a month and it will cost me $1,554 in interest (3.95%). Is this loan a good idea, and is it worth it for ...

Best Canadian Tax-Free Savings Accounts in 2020

Table of Contents The best TFSA savings accounts in Canada What is a Tax-Free Savings Account (TFSA)? Should I use a TFSA or an RRSP? Which type of TFSA might be right for me?   A Tax-Free Savings Account, or TFSA, is a savings vehicle available to Canadians aged 18 and up who have a valid social ...

How to make sense of contradictory investment advice

Q. Several investment sources are giving advice that seems contradictory. On the one hand, it is often preached that the key to smart investing is having a long-term view. That is, buy and hold good-quality stocks for long periods of time (10-plus years). It is argued this kind of passive approach, ...

A Guide to Guaranteed Investment Certificates (GICs)

Table of Contents What is a GIC? How does a GIC work? Terms and Maturity Withdrawal penalties Types of GICs GIC laddering Are GICs worth it? As the saying goes, it’s better to be safe than sorry. And for investors seeking safety, guaranteed investment certificates (GICs) can be a useful ...

When should you stop contributing to an RRSP?

Q. I live in Toronto and I’m a single person in my early 50s. I have $165,000 in investments (mutual funds in an RRSP) and $15,000 in savings. About five years ago my financial advisor at one of the Big Five banks advised me to stop contributing to my RRSP and start contributing to a TFSA instead ...

Is Carol better off withdrawing all the money from her RRIF now?

Q. I am considering deregistering my Registered Retirement Income Fund (RRIF) of $89,000 and taking the tax hit for the 2019 tax year. Doing this would leave me eligible to maximize the Guaranteed Income Supplement (GIS) as well as the Shelter Aid for Elderly Renters (SAFER) in the future. Right no ...

Learn how to spot the best ETF for TFSA investing to maximize your investment gains

Understand the qualities of the best ETFs, including diversification among top-quality stocks, so you can hold the best ETFs for your TFSA investing success Your tax-free savings account (TFSA) allows you to earn investment income, including interest, dividends, and capital gains, tax-free. Do you ...

What’s the best way to help a relative, financially?

Q. My nephew is 30 years old and works full-time in a close-to-minimum-wage job. He carries a mortgage on his condo and is able to save about $40 per paycheque. Periodically, he contributes to his TFSA but still struggles financially. I fear that he will not have saved sufficiently to fund a comfor ...

How Much Should I Contribute to My RRSP?

Figuring out how much to contribute to your RRSP is important. Do it right, and you maximize your tax savings now, while setting yourself up for a good income after retirement. Do it wrong, and you could find yourself paying more taxes than you have to. Luckily, planning how much to contribute to y ...