Personal Finance | Crawford • Ashwood Financial

Continuing our Life Events series, today we delve into some planning thoughts when you leave a job. Although we would all like to think that we can choose when to change our job or when we retire, the reality is that sometimes the choice is made by our employers. When you lose your job, there are many important decisions that have to be made in a short time. Severance/Retiring Allowance There are minimum severances and retiring allowances that employers must pay, set by the provincial government. These are based on your years of service. However, there are conditions where additional…

We all know that governments throughout the developed world are taking more and more of our earnings in the form of taxes of various sorts. In Canada we do live a good quality of life, and the taxes we pay help to make our country one of the best to live in. However, we don’t need to give them more than is necessary. There are not a lot of ways to save taxes, but we do still have a few to draw on. Here is a brief summary of some strategies that are available. RRSPs – this is an obvious…

Given recent market volatility, it is worth my comments to our clients to outline what is going on and why. As usual when uncertainty rears its head in the stock & some bond markets, investors hit the exits. The question is why now and when will things calm down so that markets can go back up. Canadian market uncertainty, of course, revolves around the price of oil and other commodities. We have a glut of oil reserves. The Saudi’s continue to pump out at high rates, technology is allowing better access to North American oil, and lower consumption due to…

Our new government has kept their promise to reduce the Tax Free Savings Account (TFSA) limit back down to $5,500 per year. But don’t worry; you aren’t losing any contribution room that has already accumulated. Anyone opening a brand new account today would have a limit of $41,000, and that will rise by another $5,500 on January 1st, 2016. So, new accounts or maximums for previously opened accounts will be $46,500 in the New Year. We recommend you check with your accountant or tax preparer, or log into your CRA My Account online, to ensure you don’t over contribute if…

In my previous blog post I discussed the oldest form of pension plan—the Defined Benefit Plan (DBP). The vast majority of employers today have moved to a Defined Contribution Pension Plan (DCP). The reason for this is that unlike a DBP, once they have made their contribution, the employer is no longer on the hook for a specific monthly retirement benefit for the employee. There is no liability to the employer to keep funding the pension plan over and above what they have agreed to contribute on your behalf. In a Defined Contribution Plan the employer agrees to contribute to…

As your advisor, it is important that I am aware of all the pieces of your financial life. If you are one of the fortunate people who have a pension or Group RRSP through your employer, we must examine just how much this plan will contribute to your retirement income—and whether you can rely on your work pension plan. First, let’s explore the Defined Benefit Plan. If you have one of the old pension plans that have been in existence for decades, it may well be a Defined Benefit Plan. These are often fully funded by the employer, and they…

Not many people like to think about death, and certainly not our own disability or demise. As unappealing as it might be to start planning for this inevitability, it has to be done. The Legal Stuff First, get the legal stuff done. There are many documents you may need to consider, and the good news is that it is likely not as complicated or expensive as you might imagine. A Will Everybody needs a will; however studies show less than half of Canadians actually have a will. A will is there to explain what you want done with your assets…

Most people have a limited income with unlimited ways to spend that income. There are so many current and possible expenditures that pull at us; it is often hard to know which should be our priorities. Let’s take a look at what your options are and which could and possibly should be the most important. Current living expenses include necessities such as food, shelter, warmth, and transportation. It is really important that you live within your means. I can’t stress this enough. If you have more money going out than coming in, then you need to take a hard look…

Earlier this week, the 2015 Federal Budget announced that the Tax Free Savings Account annual contribution limit will be increased from $5,500 to $10,000 per year. The government has said that this change will be effective immediately (and be retroactive to January 1st). What This Means for You If you have not already made a 2015 deposit into your TFSA, you can do so now up to the new maximum of $10,000 (if you have not maximized previous years contributions you may actually have more room). If you have already made a contribution of $5,500 this year, you can add…

Some experts say that new parents spend $10,000 during their first year in parenthood. You knew having kids wasn’t cheap, but that’s a lot of money on top of your regular living expenses. You would need to come up with $250 a week for nine months to save that amount of money ahead of the baby’s arrival. That’s around $1000 a month! The key is to start early. Start early. If you are planning on starting a family soon, and have a couple of years to build up the resources required, you might need only $96 a week. A Tax…

Category Archives: Personal Finance

Leaving a Job

Tax Savings & Sheltering

Bumpy Markets

2016 TFSA Limit

What Kind Of Pension Plan Do I Have? – Part Two

What Kind Of Pension Plan Do I Have? – Part One

Estate Planning

Financial Priorities

Save More for Later

Staying home with baby?