Is Impulse Buying Setting Back Your Goals?
When it comes to finding extra money for saving in your budget, we’re often told to look at your regular spending patterns. You know the drill – cut out your Starbucks habit, bring your own lunch to work, take the bus. But often it’s the irregular impulse buying that can wreak havoc on your budget. You…
Read MoreZero Down Mortgages: The Last Gasp From A Housing Bubble Ready To Pop?
Since the 2008 financial crisis Canada’s federal government has taken several steps to cool the nation’s housing market; namely reducing the short-lived 40-year mortgages to today’s 25-year amortization period, and eliminating zero down mortgages to require homebuyers put down a minimum five percent. These measures didn’t do much to slow down a rapidly rising real estate market, particularly in…
Read MoreWeekend Reading: Income Splitting for Small Business Edition
When I started my online business I was concerned about how best to minimize taxes on any income earned. As the lone breadwinner in my family, any extra income earned outside of my day job is taxed at my highest marginal rate. I knew that one advantage of having a small business is the ability…
Read MoreFrom The Boomer & Echo Mailbag: Spousal RRSPs
Now that you can split pension income in retirement, is it worth it to contribute to a Spousal RRSP? Income splitting is a tax planning technique designed to shift income from a higher earning spouse to the spouse with little or no income. It can reduce or eliminate potential clawbacks (e.g. OAS, age credit). Current…
Read MoreFinancial Management By The Decade – The 60’s
Your retirement should be almost within reach (if you are not already there) and all those years of saving are over. This is the decade when government pensions kick in. You can start collecting a reduced CPP as early as age 60 and, if you are close to this age now, OAS at 65. This…
Read MoreThe Pitfalls of Prioritizing Retirement Savings Above All Else
I was 19 years old when I started saving for retirement. A small portion of every paycheque went into my RRSP, starting with $50 every two weeks and eventually increasing that amount to $200 per month. While my intentions were in the right place, the reality is that putting retirement savings ahead of a multitude…
Read MoreWhat Is A Safe Withdrawal Rate In Retirement?
Once upon a time, Canadian retirees used their nest egg to fund particular expenses such as a new car, home renovation or a special trip. Some people will still be able to make irregular withdrawals like that, but it is more likely that today’s (and future) retirees will be relying on their own investments for…
Read MoreHistory Repeats Itself: The Rise and Fall of the Alberta Oil and Gas Industry
As a former long-time Calgarian with family members working in the oil and gas industry, I’m still interested in reading the current news reports about the economic struggles in Alberta. With the falling price of oil and massive job cuts, it is the toughest financial situation that province has seen in decades – the 1980’s…
Read MoreRenewing Your Mortgage This Year?
Our mortgage is up for renewal later this year. That’s a shame because I’m enjoying the ultra-low 1.90 percent interest rate on our five-year variable mortgage (prime minus 0.80 percent). It’s a near certainty that I’ll have to renew at a higher rate this summer. My bank is offering five-year variable rates at prime minus…
Read MoreWeekend Reading: Tax Changes and RRSPs Edition
I got my T4 this week and, with the 2015 RRSP contribution deadline just around the corner, my thoughts have turned to tax season and making sure I do everything I can (within reason) to reduce the amount of tax I pay this year. A new government, both provincially here in Alberta and federally, means some…
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