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Showing posts with label building savings. Show all posts
Showing posts with label building savings. Show all posts

Using Tax Deferral to help Your Retirement

tax deferral grant thorton kelowna2009 is over and 2010 is here. As we enter the new year we are all recovering from our Christmas financial misadventures, and making new years resolutions for better financial plans for the coming year. The question this time of year is do you contribute to your RRSP?

It is hard to believe The RRSP was created by government in 1957 to encourage individuals to save for their own retirement. Even after more than 50 years many still are unsure of the tax benefits of investing using an RRSP.

To better answer this quest let me introduce you to guest contributor to mikehassard.blogspot.com Gary Schlenker, Manager with Grant Thornton LLP Kelowna on the tax benefits of an RRSP.

Tax Tip - How to make the most effective use of your RRSP.

  1. If you make regular contributions to an RRSP, consider applying to have your income tax withholdings reduced on your paycheque, which will improve your monthly cash flow. To do this, simply submit Form 1213 to the Canada Revenue Agency for authorization. Once authorized, your employer will be able to reduce the amount of taxes withheld from your pay.
  2. Even though your RRSP administration fee is not tax deductible, you should consider paying it directly, instead of from inside your RRSP – this helps maintain capital in your plan, allowing it to grow on a tax-deferred basis.
  3. You don’t need to deduct your contribution in the year it is made, If you are expecting to be in a higher tax bracket in the future, consider delaying your deduction until that time – you will receive a larger tax saving if the deduction is taken when you’re in a higher tax bracket.
  4. Considering filing tax returns for children or other low-income earners to creat contribution room that can be used in the future.

For more tax tips, visit our website at www.GrantThornton.ca or contact Gary Schlenker at our Kelowna office at the addresses below.

Grant Thornton

Telephone: 250-712-6892

E-mail: gschlenker@GrantThornton.ca


Thanks again to Gary from Grant Thornton Kelowna.


Carnival Rio de Janerio - a 5 day Celebration!

Of all the financial goals I hear wanting to Travel is always at the top of the list. To help with ideas on travel I have asked a friend of mine Daniel Rae of Vacanza Destinations Kelowna to provide some information on travel ideas.

Daniel has extensive travel experience and is out visiting travel destinations 3-4 times a year. As a travel wholesaler he knows personally the hotels and restaurants he recommends.

According to Daniel if you are looking for something more than Las Vegas, Mexico or Disney Land you might enjoy Rio de Janerio ...
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Renovating Your Financial House Part 1

It was a stroke of genius. Giving a tax credit for home owners to spend money on a new hot tub, bigger kitchen, or renovate the family room. Improve the quality of your living experience and save some taxes along the way!

What respectable home owner in Kelowna would want a nicer home? According to some polls more than 50 % of Canadians know about the renovation tax credit and many are going to do some kind of work in the next 6 months!

Just like upgrading your home ... renovating your Financial House can radically improve the quality of your life. Whether this means changing your spending habits so you have more spending money, simplify your life insurance coverage to save money, optimizing/eliminating debt to pay less interest or contibuting more to your RSP for a better retirment... a Financial Renovation can do wonders to improve your life!

Over the next 4 weeks I will be discussing the 4 key areas to creating a Financial House you can sleep soundly in.

The four areas are:

Protecting Your Family. Are you spending more than you make, what do do if your EI benefits are late, or the bread winner dies prematurely. It not sexy ... but this the foundation of your Financial House. Check out Part 1 here

Debt Elimination. Debt is the number one issue facing Canadian Families. Can you imagine your life if you had no debt? No credit cards, line of credit, overdraft and mortgage. How much more money each month would you have with no debt. Part 2 here

Build Savings. How to get your money working for you. Creating a systematic way of making money so you can focus on how to live your life and not worry about the markets. Know how your money is invested so you don't have to worry. Part 3 here

Have a written plan to achieve your goals and dreams. So you agree you want to protect your family, eliminate your debt and build saving for the future, is important to your success. What questions should it answer and how to tell if your plan is working. Part 4 here.

Now is great time to renovate your Financial House and improve your quality of life today and in the future.