The federal government released its ‘Indexation adjustment for personal income tax and benefits amounts’ (IAFPITABA), which shows the increases to 2019 tax bracket thresholds, plus increases to income-tested benefits like the GST credit and Canada Child Benefit. These increases are tied to inflation using Consumer Price Index data from Statistics Canada, which pegged inflation at 2.2 percent.

Of note for many investors is the TFSA limit increase from $5,500 to $6,000. As you may know, the annual TFSA contribution limit is indexed to inflation each year and rounded to the nearest $500. If you were eligible to open a TFSA in 2009 and haven’t contributed then you’ll have $63,500 in available TFSA room.

TFSA Limit Increase

I’m in the midst of re-filling my TFSA after several years of neglect. I was able to contribute $12,000 to it this year and plan to do the same next year. At that rate my wife and I will completely catch-up on our unused TFSA contribution room by 2024

Families receiving the Canada Child Benefit should also see a boost in their benefits next year. If you recall, the federal government announced that the CCB would be indexed to inflation starting July 1, 2018.

The indexing not only applies to the base amounts given to children under 6 and children ages 6-17, but also to the adjusted family net income at which the phase-outs begin. That places even more emphasis on the strategy I highlighted for families to get more out of the Canada Child Benefit by making RRSP contributions to reduce their adjusted family net income.

This Week’s Recap:

On Wednesday I shared 15 money saving tips to live by.

On Thursday I answered the question, is renting throwing away money?

And over on the Toronto Star I shared how to find the best cash back rewards credit card.

Weekend Reading:

Here’s Jason Heath on why you need to understand risk and uncertainty when planning for retirement.

I had a post last month on CoPower’s Green Bonds. Harvard Business Review explains why Green Bonds benefit companies, investors, and the planet.

We talk a lot about the importance of temperament for investment success. But what exactly is temperament? Here’s an excellent summary:

 “Temperament, in the investment sense of the term, is how we deal with the uncertainty that comes with making decisions about the future. It is the way that we make decisions based on incomplete information where the results will often be unknown for a long time.”

Investing in the all stock ETF Model Portfolio? Take on the risk, if you can, says Dale Roberts from Cut the Crap Investing.

Hedge-fund manager James Cordier tells his clients via YouTube that he lost all of their money – some $150 million – selling options in the natural gas market:

Jason Heath tries to explain to a mother why selling her home to her son for $1 is not a good idea.

Millionaire Teacher Andrew Hallam explains why retirees and millennials face a tug of war:

“Millennials should hope that stocks stagnate for years… or that stocks fall hard. It would allow them to pay lower prices for stock market shares. As a result of lower prices, dividend yields would rise. This would increase their odds of building stock market wealth.

Some of my friends, however, are already retired. They don’t want stocks to fall. And that makes sense. Retirees are selling their stock market assets. They want to see those assets rise.”

Mark Seed at My Own Advisor says it’s never too soon to run some retirement numbers. Agreed.

Many retirees are sour on ETFs because their dividend distribution is too low. Michael James answers a reader question about rising dividends in ETFs.

Finally, here is some interesting research posted by PWL Capital about bull markets, bear markets, and the average length of a full stock market cycle.

Have a great weekend, everyone!

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