Cut Your Losses

Greed and fear: one drives prices up, the other drives them down. These are the two emotions that make for fascinating bull and bear markets. To get the results you want in either trend, timing, of course, is everything. Disciplined investors sell at the top of a cycle and buy at the bottom. However, they also pause long enough, before crystallizing either euphoric gains or staggering losses, to understand the real dollar effect of their actions, after taxes. This is […]

Embracing the Millennial Millionaire

Close to 200 attendees at the 2015 Distinguished Advisor Conference (DAC) at the 12th annual event in beautiful Puerto Vallarta, Mexico. The conference was packed with information and opportunities for advisors to seize, particularly in light of the new Liberal government in Ottawa and the significant tax reforms their rise to power will usher in. I identified four major opportunities for advisors in a changing marketplace in my opening presentation: Boomers: This aging cohort represents extreme wealth and advisors can […]

Year-End Tax Planning: Manage the Costs of Debt

It’s hard to believe that back in 1980, Canadians’ debt to disposable income level was 66%; today it is 164%, which means that households today owe more than $1.64 for every dollar of disposable income. That’s a big problem if job loss is in the future and, therefore, should be a topic of conversation for those working in industries suffering downturns and in retirement planning conversations. One of the underlying conditions of borrowing of any kind is simple: There must […]

Should TFSA Accounts Be Topped Up?

It appears unlikely that investors who have already maximized their TFSA contribution room to $10,000 in 2015 will be asked to remove the extra $4500, should the new government make good on their pledge to repeal the $10,000 maximum contribution in favor of a $5500 annual amount. That’s why, it’s important to top up the TFSA contribution room as quickly as possible – simply because it makes sense from a wealth building point of view, but also you could lose […]

Evelyn Jacks’ Top Three Year-End Tax Filing Tips

The family’s tax returns are a great place to look for year-end planning opportunities that will create new money for that Christmas vacation or will help to pay off those credit cards come January. But the time to focus on this process is before the snow flies. Here are my top three tips for enhancing your family’s tax planning process—a few things you can do now so that you’ll have some extra “gold dust” at Christmas time: Recover taxes owing […]

Pain Relief for Child Care Costs

Whether you are a student or working and paying for child care, those expenditures may be deductible and the maximum amount you can claim has increased this year. It’s a lucrative year end tip advisors will want to prime their clients about, to maximize child care expense claims on the 2015 tax return. The maximum claim for child care expenses is linked to qualifying income. This maximum is the least of: the eligible child care expenses paid to eligible child […]

Six Reasons Why: TFSA a Powerful Wealth Builder for Millennials

Last week we discussed reasons why an increased TFSA contribution limit is very helpful in building wealth for seniors. But the TFSA is an even more powerful tool for millennials, who should maximize their contribution room to build a tax-free retirement surplus that is potentially increased by the longer compounding time afforded to the young. Here are my top six reasons to consider the TFSA tool in year-end tax planning: Reason 1 – Family Income Splitting: There is no attribution […]

TFSA Rollback Would Affect Seniors and Youth

Especially in a low interest rate environment where it is difficult to beat inflation and tax erosion without incurring market risk volatility, any rollback of the TFSA contribution limit to $5500 from the current $10,000 would affect seniors, as well as young adults trying to save for their futures, too. Despite political controversy, the reality is that the TFSA has gained broad-based acceptance by 40% or 11 million average Canadians. More than 80% of all TFSA holders have incomes of […]

Prescribed Interest Rates Remain the Same – Except for PLOI

The prescribed interest rates for October 1 to December 31, 2015, remain unchanged on overdue taxes and tax overpayments, and for calculations of taxable benefits and shareholder loans. However, the interest rates on PLOI – Pertinent Loans or Indebtedness –have been reduced this quarter. Prescribed interest rates are calculated quarterly, based on changes in the yield on 90-day Treasury Bills (average for first month of preceding quarter) plus adjustments of 2% for taxes payable by CRA and 4% for taxes […]

Caregivers Need More Help

Many of us are blessed to have older family members enriching our lives, but they often require a significant amount of care, and their caregivers can, in turn, require more help. At a time when politicians and potential leaders debate subsidized child care, are we missing an opportunity to discuss whether the tax system is doing enough to recognize the real and increasing costs of elder care? The Issues: There are 5.4 million caregivers in Canada, and close to 60% […]