TFSA – Tax Free Savings Account
What is a TFSA? The TFSA program began in 2009. It is a way for individuals who are 18 years of age or older and who have a valid social insurance number (SIN) to set money aside tax-free throughout their lifetime. Contributions to a TFSA are not deductible for income tax purposes. Any amount contributed as…
(IPP) Individual Pension Plan
Business Owners Should Consider an Individual Pension Plan (IPP) What is an IPP? A difference between an IPP vs. an RRSP is essential for business owners. In this article, I’ll explain the pros and cons of each and provide context for choosing between them. An IPP (individual pension plan) is a lesser known but highly-attractive vehicle for…
The Cottage as a Legacy
Gifting the Cottage to Children – is NOT a Free Gift When you think of your family cottage you don’t think of it as a building, property or asset, but the birthplace of a kaleidoscope of memories. Whether you toiled with pride to build or renovate the cottage or not; one thing is almost always…
Home
LIFE PLAN – 1 So, what is a Life Plan? One can equate a life plan to a “Float Plan” for someone who plans to take his yacht and sail the “Loop” [Say from Toronto, up the Great Lakes to Chicago down to the Mississippi River, to The Gulf of Mexico, around The Florida Keys…
RRSPs & RRIFs
WHAT ARE RRSPs & RRFs? I have had discussions with a number of people where it became evident that there is some confusion about what an RRSP or a RRIF is or is not. As a result I am going to take a stab at explaining the fundamentals of these financial instruments. Many seem to…
Prescribed Life Annuities
Tax-efficient retirement income Taxation is an important consideration when planning your retirement income, and using a prescribed life annuity is one of the best ways to generate tax-efficient income. When a life annuity is purchased, the owner receives regular income payments which are comprised of capital and interest income. How the interest income…
Reverse Mortgage or Life Insurance
Most of us have heard of Reverse Mortgage as a source of freeing up cash, tax free, from the homes that we live in to bolster our retirement income. If you are not familiar, it a simple strategy of borrowing funds from lending institutions where the payment of the interest is optional and if not…
Life Plan – 1
So, what is a Life Plan? One can equate a life plan to a “Float Plan” for someone who plans to take his yacht and sail the “Loop” [Say from Toronto, up the Great Lakes to Chicago down to the Mississippi River, to The Gulf of Mexico, around The Florida Keys and up the east…