Financial Planning will be taught in elementary schools
Ontario’s overhaul of math teaching will include financial literacy, writes Peter Watson. Young children will start learning financial planning at school. This is an excellent life skill and, in my opinion, an educational upgrade. One of the foundations an individual carries through life is a strong education. Reports over the years show a correlation to […]
Stocks Plunge and Investors Panic
Stock markets are volatile, writes Peter Watson. Speculating and attempting to predict short-term stock price changes historically has not been a successful strategy for investors. As we have recently seen, stock market values can shoot up and plunge down from day to day. These volatile swings also happen within the days that stocks are traded. […]
Flexibility Should be Built into Your Retirement Planning
Retirement is not always the way you imagine. Ipsos conducted a poll on behalf of RBC. The 1,800 Canadians surveyed were 55 years and older and had retirement assets of at least $100,000. Over half of people surveyed anticipated knowing their retirement date one year in advance. The reality was just under 40 per cent […]
2020 Tax-free savings account limits established
The federal government has offered Canadians an extremely attractive tax-free investment option. A Tax-Free-Savings Account (TFSA) is a way to grow your savings without paying tax on any contributions, interest earned, dividends, or capital gains. Many don’t take advantage of this opportunity. I suggest you take some time to see if this investment strategy would […]
Canada’s Income Tax Act Needs Reform
Canada’s Income Tax Act is an inefficient mess that needs to be radically reformed. It’s too complicated. There are 40,000 employees at the Canada Revenue Agency. Based on Canada’s population versus the United States, we employ five times more people collecting tax than our American neighbour, on a per capita basis. A simplified method of […]
Understanding tax free savings accounts can be profitable
Understanding how best to use a Tax Free Savings Account (TFSA) could prove to be very profitable. Let’s start with the news. The annual contribution limit has increased for 2019 to $6,000, up from $5,500 for the previous three years. Contributions to a TFSA are not income tax deductible like those to a RRSP. However, […]
Tax planning and asset location
Do you pay too much income tax every year? The solution could be asset location. For individuals who have an investment portfolio that includes an RRSP or RRIF, and a regular Investment Account, this column will be of particular interest. Consider this a practical tax planning guide. Zero math skills are required however, you may […]
RRSP contribution season – it’s that time of year again
We are nearing the end of the RRSP season where Canadians flock to their financial advisor or financial outlet and make an annual contribution to their Registered Retirement Savings Plan. This multi-decade ritual seems to be changing. But first let’s review the basics. An RRSP allows a Canadian to contribute an annual amount based on […]
Privacy is a very big deal
You might presume when you file your annual income tax the private and sensitive information you provide the government is confidential. Think again. Information released recently under access to information laws expose privacy breaches that have occurred and continue to occur at the Canada Revenue Agency (CRA). In our new world of instant communication, much […]
The Panama Papers scandal more intriguing than a Grisham novel
New evidence of tax evasion is exposing the rich and famous from Canada and around the world. The Panama Papers scandal has more intrigue than a Grisham novel. A computer hacker downloaded 11.5 million confidential files from a Panama law firm that specializes in setting up tax havens for wealthy global clients. Among those named […]