Financial Wisdom

July 2021

TFSA Notices and Penalty Risks

The latest Federal Budget included an administrative rule change that allows the CRA to automatically send you notices electronically without your prior permission or registration.

The risk, as noted in the recent case of a B.C. taxpayer, is this may lead to penalties for TFSA over contributions. It is your responsibility now to regularly check your CRA My Account site.

Let me explain. The proposed change to the law will allow the CRA to send some Notice of Assessment (NOA) forms electronically. The change will apply to...

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Getting Back to Basics

Recessions, stock-market declines, housing market bubbles, joblessness and, most recently, a global pandemic have created a series of challenges for people trying to start, grow or maintain a retirement savings plan.

Given this rollercoaster, it’s natural to wonder if you’re doing all you can to protect your retirement nest egg. Taking a "back to basics” approach can empower you and help keep your financial plan on track during uncertain economic times and beyond.

Consider these tried and tested tips that wise financial advisors use to help people like you plan for a secure and enjoyable retirement...

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Be Careful with RRSP Beneficiary Designations

When Margaret and James married in 2005, it was a second marriage for both of them. They had no children, so when they did their financial planning, their wills were clear that 100% of their estates would go to the other. Believing this was sufficient protection, they built a life and continued to grow their wealth.

Sadly, Margaret’s sudden passing in 2019 exposed a serious hole in their estate plan. Her registered retirement savings plan (RRSP), worth $450,000 and the bulk of her estate, listed her first husband as beneficiary. To make matters worse, her RRSP would not only go to someone she was no longer married to, but her estate would also be required to...

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Arthur Ashe

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Please read the prospectus of the mutual funds in which you invest. The information in this email newsletter is general information only and is not intended to constitute specific legal, accounting, financial or tax advice for any individual.

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