Seven Ways to Fund Higher Education – Part 2

The cost of a post-secondary education is rising faster than the rate of inflation, making higher learning more of a stretch for Canadian students and their families. Last time we discussed four ways to help parents save money for education: Save the Universal Child Care Benefit (UCCB) Leverage the RRSP opportunity Make a TFSA contribution Save in Trust for your child’s education. Here are three more strategies for you to consider: 1. Save the Child Tax Benefit. The amount of […]

Seven Great Ways to Fund Your Child’s Education, First of two parts

Average undergraduate tuition fees have risen to just under $6000 a year in Canada since 2010; an increase of 16% in just five years. This rate of increase (3%) has outpaced the rate of inflation (average 2%). At this pace, post-secondary education for a child born this year will cost over $10,000 a year. Following are four great ways to start saving now; next time, we’ll cover three more for a total of seven great strategies: 1. Save the UCCB. […]

Investments in Limited Partnerships by Registered Charities

Tax changes in the 2015 Federal Budget may bring real value and a level playing field for investments under the stewardship of a charity, making it easier for the good work they do to have a more immediate impact on pressing social and economic needs in Canada. Specifically, registered charities may now hold an interest as high as 20% in a limited partnership, which provides a new diversification opportunity in portfolio management. Prior to the budget, charitable organizations and public […]

Finance Canada Releases Details Of Small Biz Charity Break

Finance Canada has released the fine print that will both introduce and limit a new tax break, when arm’s length sales of real property situated in Canada or the shares of a private small business corporation are donated to charity by a resident taxpayer, effective the 2017 tax year. The provision was first announced in the April 21, 2015, budget; but, as the preamble to the section indicates, the government may already be having misgivings on the implementation of the […]

Two-Parent Families With Kids: $85,000 Is Median After Tax Income

The Canadian Income Survey for 2013 was released by Statistics Canada on July 8. While things are virtually unchanged from 2012, some interesting facts emerge about the income levels earned by Canadian families. The survey defines market income as “earnings, private pensions as well as income from investments and other sources such as support and disability payments”. After-tax income is defined as the total of market income and government transfers, less income tax. The survey also defines those who live […]

Underground Economy: Teaching to the Perils Part of a Professional’s Role

The Underground Economy (UE) is a significant global problem that causes economic erosion for all participants in the financial eco-system. However, it also presents an opportunity for professional tax and financial advisors to rise to the occasion in educating their clients on the issue. By definition, when people participate in the UE, they under-report or fail to report sales or income, thereby minimizing or completely avoiding the payment of tax. Think about the disadvantage that this presents for law-abiding organizations […]

Financial Literacy Report Cards: Teaching Top 6 Skills

It’s report card time for kids, but it’s also a good time for parents and teachers to reflect on the level of financial literacy among students, and bringing more effective financial education to next year’s curriculum, which begins just a couple of months from now. Unfortunately, despite a plethora of free resources available to teachers, there still seems to be considerable resistance to delivering key life skills in the area of financial education. As a member of the Federal Task […]

Three Essential Ingredients for Building Wealth

Father’s Day is coming up. It’s a perfect time to reflect, cherish and remember the financial wisdom your father instilled in you and how it shaped your life. The author of Rich Dad, Poor Dad, Robert Kiyosaki, offers many important quotes about health and wealth throughout his book, but here are two of my personal favorites: • “The single most powerful asset we all have is our mind. If it is trained well, it can create enormous wealth in what […]

“Atrocious” Economic Data, but Healthier Household Debt Ratios

The most recent economic data is indeed atrocious, as Bank of Canada Governor Stephen Poloz predicted in England late last year. But there is some terrific news in the data that was released last week on the first quarter results: Canada’s household debt service ratio fell to 6.74%, its lowest level since this number was first recorded in 1990. It’s been a tough year in economic forecasting. Seven months ago Poloz predicted Canada’s economy would grow 2.4% in the first […]

Safest Banks: Is Canada in the Top 10?

We generally believe, living in Canada, that we have the safest banking system in the world. Certainly we’re in the top 10, right? It depends on who does the ranking, it seems. Global Finance Magazine, for example, did its 23rd annual ranking in September of 2014. Not one of the Canadian banks made the Top 10; but TD Bank Group did make spot #11 as the highest ranked Canadian bank in 2014 and continued that ranking in the first quarter […]