When your clients are considering an RRSP withdrawal, it’s important that they know their financial institution withholds taxes for all cash withdrawals from RRSPs, and that any remaining income tax will be payable at the end of the tax year.

The RRSP Withholding Taxes Calculator will help estimate both of these amounts based on where your clients live, their taxable income, and the amount withdrawn, and to request the right cash withdrawal amount to achieve their financial goals. Continue reading “RRSP Withholding Taxes Calculator” →

With the increase in the capital gains inclusion rate from 1/2 to 2/3 effective June 25, 2024, passive investment income could be higher in your client’s corporation. Now is the time to revisit the potential reduction to your client’s small business deduction. Continue reading “Time to Revisit the Passive Investment Rules” →

New Year celebrations have come and gone, but don’t worry, it’s not too late for your client to make an RRSP contribution for 2023. The Income Tax Act allows an RRSP contribution that is made within the first 60 days of the following year to be used either in the year of contribution or in the year prior. So, if your client makes an RRSP contribution by February 29, 2024, the contribution can still be used as a deduction from their 2023 income. Definitely some good news to share with your clients! Continue reading “The 2023 RRSP Contribution Deadline” →

Is your client expecting a new family member? What an exciting time, but equally as scary when they begin to consider all the uncertainties that come with parenting.

First day of school, learning to drive, parties and dating… over the years, there will be plenty of things for your client to worry about as their child grows up and ventures into an independent life – however, finances should never be one of those worries. Here are a few key aspects for your client to consider when laying out a solid financial foundation for the newest members of their growing family. Continue reading “What Your Client Should Financially Expect When They’re Expecting” →

Between 2020 and 2030, there will be a huge intergenerational wealth transfer in Canada – over $1 trillion (1). As an Advisor, are you positioned to take advantage of this transfer of wealth?

If you have mature clients, you understand the unique issues and lifestyle decisions that they face and how these decisions can have a significant impact on the value and transmission of their wealth. As their Advisor, you are in a position to offer unique perspectives and solutions that can make a difference. Continue reading “The $1 Trillion Intergenerational Wealth Transfer” →

When inflation is in the news there is increased focus on guaranteed interest type products, namely, annuities. But what exactly is an annuity and how does it work?

An annuity offers your client, the investor, an opportunity to relinquish a lump sum of money in exchange for a guaranteed periodic level cash flow. The periodic amount your client receives is based on their age, gender and prevailing market rates. There are two main types of annuities: a “term certain annuity”, where a period of time is specified for the cash flow and a “lifetime annuity” where the cash flow is guaranteed for life. In either case, the market risk is taken out of the equation as the cash flow is guaranteed for the pre-determined amount of time. Here are a few more factors to consider with your client: Continue reading “Guaranteed Interest Rates with Annuities” →

Putting some money away for the future is always a sound idea. However, with so many investment opportunities, some of which may require tax payment on income earned, which one is the right fit for your client and their savings goals today?

Tax Free Savings Accounts (TFSAs) and Registered Retirement Savings Plans (RRSPs) are both available savings tools and can house many of your client’s investments while helping to defer or reduce their tax obligations. But there are a few things to consider… Continue reading “INFOclip: RRSP vs TFSA” →

A good cautionary tale makes a person stop and take a look at their own circumstances.  Bernard’s story may encourage your clients to take stock of their assets and consider whether they’ve properly planned for the distribution of those assets.

Share Bernard’s story with your clients to help them see that there are nuances involved in naming beneficiaries and heirs, and that seeking good advice, communication, and documentation when planning can help to ensure their wishes are carried out as hoped.   Continue reading “Learning From Experience: Bernard’s Story” →

Lately, we’ve all been experiencing a few less dollars in our bank accounts. Between the cost of fuel, groceries and the overall cost of living, there’s no denying that everything is just so much more expensive. Your clients may want to know why and although “inflation” is the one-word answer, we’re diving a little deeper into why inflation occurs and how it can affect interest rates and your client’s investments. Continue reading “Inflation, Interest Rates and Your Client’s Investments” →

Investors are frequently instructed to own a well diversified portfolio in accordance with their risk tolerance and hold it through all market conditions until their situation changes or they are facing a life event. This is all well and true, but for investors entering their retirement years, generating a high return, while important, is only one factor which ultimately influences how long their savings will last. Another important factor is the order in which returns are earned. To put it simply, regular withdrawals diminish the dollar value of a portfolio, and it is precisely this dollar value upon which future returns are compounded. In fact, experiencing negative returns early on can result in running out of savings much sooner than if the portfolio experienced positive returns at the outset. Continue reading “What is Sequence of Returns Risk and How Does it Affect Your Client?” →