I added One Up On Wall Street to my library in 2015, but didn’t get around to reading it until this Spring. At the end of 2016, I had added it to my financial education reading list for 2017.The book written by Peter Lynch, first published in 1988 and followed by a second edition in 2000, is an excellent read and offers timeless advice to the average investor. A theme that comes up again and … [Read more...]
Bank of Canada’s Interest Rate Hike and What It Means To You
It's been nearly 7 years since the Bank of Canada (BoC) last raised its key interest rate. Following the financial crises and it's after-effects re: sluggish world economy, interest rates have generally been on the decline. However, on July 12, 2017, the BoC hiked its overnight rate from 0.5% to 0.75%. What's Important About the BoC's Rate Hike? To put things into perspective, the "overnight … [Read more...]
Designating a TFSA Beneficiary
The TFSA is a useful investment tool to avoid paying taxes on investment returns. However, depending on how the estate of the account holder is setup, there may be tax implications on income earned on funds in a TFSA after the account holder dies.What happens when a TFSA holder dies?Depending on the marital status/will/decision of the account holder, there are different options … [Read more...]
CRA’s $75 Million TFSA Penalties: How Are You Using Your TFSA?
Reports indicate that the Canada Revenue Agency (CRA) recently ordered a payment to its coffers of $75 million in penalties from audited TFSA accounts. This followed their audits of tax-free savings accounts (TFSA) over the past five years.Considering that not many people (definitely not me!) like the idea of paying additional taxes on the after-tax funds they are investing in their TFSA, it’s … [Read more...]
RESP: What If Your Child Decides Not To Pursue Higher Education?
What happens to your kid's Registered Education Savings Plan (RESP) if they decide against pursuing post secondary education? It's a good question to ask!As I have previously discussed, the RESP is a great way to save money for your child's higher education. When you consider that the government through the Canada Education Savings Grant (CESG) also contribute up to a lifetime amount of $7,200 … [Read more...]
Understanding The Home Equity Line of Credit (HELOC)
The terms Home Equity Line of Credit (HELOC) and Home Equity Loan may appear similar to someone who is new to Canadian real estate terminologies. They mean different things and I will attempt to clarify that in this article. For more on mortgage/ real estate terms and definitions, check out this article. What Is A HELOC? A home equity line of credit is a revolving line of credit that is secured … [Read more...]
Expenses You Can Claim For Your Home-Based Business
Starting a side-gig, freelance work, or small home-based business is a great way to supplement the income you make from your main employment. After I began providing part-time web design services, I became interested in how to ensure I could protect my net income, expense the appropriate costs, and minimize my taxes.According to Canada Revenue Agency, "In general you can deduct any reasonable … [Read more...]