Personal Finance
Manager Your Money
What does financial peace of mind means to you?
Financial peace of mind often involves regular monitoring of your short, medium and long term goals, and keep them on track:
Saving and investing
Paying down debt
Buying your first home
Saving for children's education
Preparing for retirement
Personal Financial Tips:
How much should I save for an emergency fund?
A rule of thumb is to save the equivalent of three to six months of living expenses in an emergency fund/rainy-day fund to get you through a financial setback or job loss. Even if you can only set aside a small amount from your paycheques, if something does come up at the worst possible time, you won’t need to dip into your savings or borrow from your credit card in order to pay for it.
How do I calculate my net worth?
To calculate your net worth, make a list of all your assets (what you own) and liabilities (what you owe). The difference between the two (assets minus liabilities) is your net worth. This will give you a better picture of your spending and savings habits so you can see where you’re doing well and where you might need to make changes.
The deadline to file 2021 personal income Tax in Canada is Monday, May 2, 2022
2022 Canada Personal Tax Changes
Canadians who received COVID-19 financial benefits such as Canada Recovery Benefit (CRB), Canada Recovery Sickness Benefit (CRSB), and Canada Recovery Caregiving Benefit (CRCB) are required to report the income on their tax return.
RRSP Contribution Limit: The RRSP annual limit for 2022 is increasing to $29,210 from the previous limit of $27,830 in 2021.
Basic Personal Amount: The federal basic personal amount in 2022 is up to $14,398 if your income is $155,625 or less. A clawback of the personal amount applies to higher taxable incomes and is $12,719 if you earn $221,708 or more.
TFSA Contribution Limit: The annual TFSA limit for 2022 is unchanged at $6,000. If you have been eligible to contribute to a TFSA since it was implemented in 2009, your total contribution room is now $81,500 (assuming you have made no withdrawals or re-contribution so far).
Federal Tax Brackets: The federal tax rates and brackets for 2022 are as follows:
Up to $50,197: 15%
$50,197.01 to $100,392: 20.50%
$100,392.01 to $155,625: 26%
$155,625.01 to $221,708: 29%
$221,708+: 33%
Find out what your provincial tax rate is here
What is a Home Equity Loan?
Retirement Planning
Cryptocurrency Comes to Retirement Plans as Coinbase Teams Up With 401(k) Provider
A small group of workers will find something new in their 401(k) plan starting in July: the option to invest in cryptocurrency.
ForUsAll Inc., a 401(k) provider, announced earlier this month a deal with the institutional arm of Coinbase Global Inc., a leading cryptocurrency exchange, that will allow workers in plans it administers to invest up to 5% of their 401(k) contributions in bitcoin, ether, litecoin, and others.
Founded in 2012, the company provides automated 401(k) administration, menus of low-cost mutual funds, and access to human advisers. With just $1.7 billion in retirement-plan assets, ForUsAll represents a small piece of the $22 trillion retirement-account market. But its embrace of crypto comes at a time of heightened mainstream interest in digital currencies.
What is target-date retirement funds ?
Target retirement funds are designed to be the only investment vehicle that an investor uses to save for retirement. Also referred to as life-cycle funds or age-based funds, all you have to know is the date you intend to retire. Say you're 40 now and want to retire when you're 65. You pick a target-date fund whose date is the year you turn 65 - that is, 25 years from now.
Based on that information, the fund will do all the work for you, essentially creating an entire retirement portfolio in one fund. When you're younger, the fund will invest mostly in stocks, in order to take advantage of stocks' superior long-term growth. As you get older, it will gradually shift more money into bonds to take advantage of bonds' greater stability. It may throw some cash into the mix as your retirement date approaches. The main disadvantages that fees for these funds are higher. As such, expenses must be a point of consideration when choosing these funds.
What is the maximum Social Security retirement benefit payable in 2021?
The maximum benefit depends on the age you retire. For example, if you retire at full retirement age in 2021, your maximum benefit would be $3,148. However, if you retire at age 62 in 2021, your maximum benefit would be $2,324. If you retire at age 70 in 2021, your maximum benefit would be $3,895.
How U.S. Retirement Benefits Work ?
When you work and pay Social Security taxes, you earn “credits” toward Social Security benefits. The number of credits you need to get retirement benefits depends on when you were born. If you were born in 1929 or later, you need 40 credits (usually, this is 10 years of work).
What is your Full Retirement Age ?
What is a Rollover IRA?
Should You Roll Over Your 401(k)?
Annuity Education