As the March 1 RRSP deadline nears, many Canadians will, as they do every year, stash a last-minute lump-sum of cash into their retirement accounts. While it’s better to contribute before the deadline than not contribute at all, investing under pressure isn’t the best way to maximize your savings. “For a lot of a people, it’s a bit of a scramble at this time of year to make an RRSP contribution,” says Todd Sigurdson, IG Wealth Management’s Director of Tax and Estate Planning.
If you are heading toward retirement with a well-balanced portfolio of assets and/or guaranteed income sources such as an employer pension, you may already have enough anticipated resources to create a life-long income stream.
Many of us understand the value of the Registered Retirement Savings Plan (RRSP): almost six million Canadians make RRSP contributions every year.1 Most of us also know about the tax benefits of RRSP contributions and that it’s an extremely versatile and effective retirement planning tool.
Looking ahead to 2023, we’re feeling more optimistic towards both the equity and fixed income markets (we’re confident they’ll soon come out of their troughs). At the same time however, the probability of an economic recession in Canada and the United States is more likely. We also expect to see peaks in inflation, interest rates and economic activity.
The third quarter of 2022 continued to present the same challenges to investors as those we’ve seen all year. That is, higher inflation being dealt with by the central banks via higher interest rates.
Higher inflation, a hawkish pivot by central banks and increasing fears of a recession weighed on both equities and fixed income during the second quarter. Unfortunately, there was no reprieve from the volatility of the first quarter.
What a difference three months can make. The first quarter of 2022 was a stark contrast to the way markets ended 2021. Many equity indices went through a correction, bond yields climbed sharply (meaning bond prices fell), while central banks began raising rates.
A vacation property—whether it’s a cottage in Muskoka or a chalet at Tremblant—is a valuable asset, not just in terms of the real estate, but also as a place that holds years of family memories. For many Canadians, passing the property to the next generation is a priority, but there are significant tax and non-tax-related considerations associated with keeping that cabin or condo in the family.
The recently announced Federal budget contains several measures that could affect your financial plans. We’ve provided key takeaways and a summary of the budget proposals.
A Tax-Free Savings Account (TFSA) is a great tool to build wealth for most Canadians while paying less tax. Although there are many benefits to investing in a TFSA, there can also be costly mistakes. This article outlines the eight most common pitfalls people encounter and how to avoid them.
64% of business owners want to transition their business in the next 10 years. However, 51% feel the next generation is not ready and 39% worry the next generation is uninterested. Whether you plan to keep your business in the family or sell to a third party, how can you ensure your business is ready for the sale?
A year ago, many countries were managing through their second wave of COVID-19 infections. Many equity markets nevertheless had staged a full and complete recovery to their pre-COVID highs. Despite the equity recovery, investors were still nervous. A year ago, we had just started to hear news of pending approvals of COVID vaccines.