Donald Trump’s U.S. tax reforms are having a significant spillover effect north of the border, as many individuals with private businesses in Canada are facing an enormous tax bill in the U.S. If your client base includes any corporation in which a U.S. shareholder controls at least 10 percent of the voting rights or value, you need to know the details of this punitive measure. he one-time “repatriation” tax of 15.5 percent that is part of Trump’s Tax Cuts and […]

The IMF predicts that if Canada and the U.S. fail to reach agreement on NAFTA, Canada’s competitiveness could take a serious hit, resulting in a drop of 0.4 percentage points or more in GDP. Donald Trump’s tweets about Justin Trudeau could further dampen the outlook. But, astute financial advisors can help clients meet their goals in these difficult times by staying on course. According to CBC, the IMF lists the recent tense trade negotiations and the threat of major correction […]

Every year there is a milestone date when Canadians can shift their focus from paying taxes due to using their income to secure their financial future. Several countries track “Tax Freedom Day” annually, and Canada’s is coming up in June. It falls weeks behind other countries, which can have negative repercussions to wealth management and retirement planning. In 2017, Canada’s Tax Freedom Day was June 9, one day later than 2016’s June 8. Compared to the U.S. date of April […]

Significant gains in transfer payments combined with good market income growth translated into an increase in median income for Canadian households, to $57,000 in the period 2000 to 2016. There is a message in the numbers for pre-retirees, and in particular women: be proactive about tax-efficient investing now or risk poverty in retirement. According to Statistics Canada’s Canadian Income Survey 2016, an increase of 8.7 percent in income from market sources—which includes employment, investment and retirement income—added more to retirement income […]

Canadian personal debt levels are now at such an alarming level, that most Canadians can’t even comprehend the size of the rising figure: $2 Trillion, as of last week. As part of their best interest duties to clients, financial advisors need to broach this uncomfortable subject, as things could get worse, soon. According to the Bank of Canada, increasing interest rates, anticipated in the second half of 2018, could impact the financial security of many Canadians. On May 1, Bank […]

A nationwide initiative that would provide Canadians with a base guaranteed income is under consideration. It’s a move with polarizing opinions, with many citing an increased burden upon taxpayers to fund the program. With a pilot project already underway in Ontario, the Parliamentary Budget Officer (PBO) released a report outlining the financial impact of introducing a nationwide program. The program proposes Canadians are never forced to live on an income that isn’t sustainable, regardless of their employment status. The estimated cost to taxpayers is […]

The federal government has pledged to put $7 Billion in funding into childcare support, and some provinces intend to add more. Do you think this is a good idea? Statistics Canada released data in October 2014 focusing on who uses childcare in Canada, which may impact your opinion. Weigh in and share your thoughts before this month’s poll closes. The General Social Survey reported the following statistics for 2011: Almost half of parents (46 percent) used childcare of some variety for […]

Have you explored all of the tax-efficient income options available to generate consistent income that will provide for your retirement needs and wants? If you’re a Boomer challenged to find tax-efficient options, discuss these four alternative sources with your tax advisor today. Many tax advisors will have these resources available in their retirement toolkit, in addition to the government benefits and private savings options that are more commonly used by Canadian investors. Taking advantage of these alternatives is especially important […]

For many Canadians filing a tax return is the most important financial transaction of the year. Getting the best tax refund is important: not only will it put more or the money you previously earned back in your own pocket, your refund can make at least some of your cash flow and retirement worries go away. Here’s how: The average tax refund last year was $1,735 or about $145 a month. If that money was going into an RRSP, over […]