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25
Jan

TFSA or RRSP? 2020

One of the most common investment questions Canadians ask themselves today is, “Which is better, TFSA or RRSP”?

Here’s the good news – it doesn’t have to be an either or choice.  Why not do both? Below are the features of both plans to help you understand the differences.

Tax-Free Savings Account (TFSA)

 Any Canadian resident age 18 or over may open a TFSA. Contribution is not based on earned income.  There is no maximum age for contribution.

  • For 2019 and 2020, the maximum contribution is $6,000.
  • There is carry forward room for each year in which the maximum contribution was not made. For those who have not yet contributed to a TFSA, the cumulative total contribution room for 2019 is $63,500.  This will increase in 2020 to $69,500.
  •  The deposit is not tax-deductible, but the funds accumulate with no income tax payable on growth.
  •  Withdrawals may be made at any time on an income tax-free basis.  Withdrawals create additional deposit room commencing in the year after withdrawal.

Read more

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22
Jan

After death of spouse, CPP survivor’s benefit can be a shock

Here’s an important article I wanted to share from CBC News. It addresses some of the scenarios widows and widowers could face if they continue to be reliant on CPP after the death of a spouse.

You can read the article on the CBC Website

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