Major changes to CRA’s treatment of testamentary trusts will take effect in January 2016. Graduated-rate taxation will no longer apply to these trusts (as well as grandfathered inter vivos trusts created prior to June 18, 1971). Instead, they’ll be taxed at the top rate. But…
The Bank of Canada says the economy is not doing as well as expected and will likely need stimulative monetary policy to stay in place for longer than previously thought to create the conditions for a sustainable recovery. In a mostly dovish monetary policy report,…
Canadians plowed an additional $5.09 billion into mutual funds last month, with most of it going into balanced mutual funds which hold a variety of asset classes. The Investment Funds Institute of Canada said the total compared with the $5.01 billion that Canadians put into…
Seniors today have never been better off financially, and are four times richer than their parents were at the same age in the mid-1980s, says a report from BMO Economics. “Many Canadians 65 years and older have benefited from strong equity, bond and real estate…
When clients request RRSP withdrawals, they’ll have to include those amounts in their incomes at that year’s marginal tax rates. Also, they’ll face immediate withholding tax. For withdrawals up to $5,000, the combined federal/provincial withholding amount is 10% (21% forQuebec); over $5,000, up to and…
The problem with the typical retirement plan is that it focuses on long term savings. This approach emphasizes getting high returns on investments, and cutting back on expenses to create a bigger pool of savings. Instead, the key to creating sustainable income is to use…
Millennials display low levels of financial literacy, engage in problematic financial behaviors and express concerns about their debt, according to a FINRA Investor Education Foundation study. Only 24% are able to answer four or five questions on a five-question financial literacy quiz correctly. And only 18% were…
Insuring your stay-at-home spouse can seem like a waste of money because he or she doesn’t earn a paycheque that would be lost if tragedy struck. Yet, if they died, you would be left scrambling to cover funeral and other costs during a time of…
Bull market has legs to run another 10 years if BMO’s Brian Belski’s math is right. There’s a common question in job interviews that is incredibly tricky to answer, even though you know it’s coming. Where do you see yourself in 10 years? The response…
By Michael Bronstine I am particularly proud of this one My client is a female 73 non-smoker. She has $600,000 in a taxable investment that will go to her grandchildren when she dies and she is spending the interest income generated by the investment. Based…