5 Personal finance tips for 2014

Rob Carrick's top 5 personal finance tips for the year ahead.

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TFSA or RRSP? Here's how to decide

  RRSPs or TFSAs? The age old question comes up most often early in the year, at RRSP season. Which is right for you? The answer is sure to differ in each case. This article from the Globe and Mail offers case studies to assist those who are unsure to make this important financial decision, and also offers the following basics of both savings vehicles: Taxes:

• RRSP contributions are tax deductibe (which means you get a tax refund), but you pay tax when you withdraw from your RRSP.
• TFSA contributions are not tax deductible, but withdrawals are tax-free.

Contribution limits:

• For RRSPs, 18% of your previous year's income, to a maximum of $24,270 in 2014 (less any pension adjustment).
• For TFSAs, $5,500 in 2014. If you haven't put money in a TFSA since they were introduced in 2009, your cumulative limit is now $31,000.

Age limits:

• You can't make contributions to RRSPs after the year in which you turn 71.
• No age limits for TFSAs.

Click here for the full article from the Globe and Mail.

Planning your mortgage

  The spring market is just around the corner, and many Canadians have already started hunting for their dream home, and calling a Mortgage Broker for a pre-approval. While a great mortgage rate is what people are looking for when they purchase, renew, or refinance, there are many other features of a mortgage to consider, such as your credit score, your current budget, and any potential penalties should you break your mortgage early. Talk to your  Mortgage Broker for more information.

  Click here for the full article from the Ottawa Citizen.

Six things to consider for RRSP season

Six things to consider for RRSP season



There is still time to contribute to your RRSP before the March 3rd deadline for tax season. While a number of Canadians contribute regularly to their RRSPs, experts say that not everyone has a good understanding about the registered savings vehicle.

 In this article from the Globe and Mail, we learn;

Which year's income to base your contributions on,

How to split spousal contributions,

How to carry forward deduction room,

and much more.

 For those with additional questions, experts recommend visiting the RRSP page on the CRA's website to gain a better understanding of the different plans.

  Click here for the full article from the Globe and Mail.

Canadians plan to save more this year than in 2013, poll finds

Canadians plan to save more this year than in 2013, poll finds 



Several recent reports have indicated that the majority of Canadians are focused on personal savings, and paying down debt for 2014.

 The average Canadian aims to save close to $10,000 in 2014, $1,000 than last year. Popular savings goals are trending towards retirement(39%), vacations(48%), and emergency funds(43%).

 Over half of respondents indicated they will be using an RRSP as their savings vehicle, while 47% will opt for a Tax Free Savings Account (TFSA), and 66% plan on using a regular chequing account. Insufficient income, personal debts, and household expenses were all cited as common reasons for Canadians not achieving their previous savings goals, prompting many to subscribe to automatic debits to encourage savings.

  Click here for the full article from the Globe and Mail.

What you need to know before, and after buying a condo

  Condominium popularity is on the rise, especially in large urban centres like Vancouver and Toronto. This housing option appeals to a wide array of Canadians, for various reasons. If purchasing a condo is your home buying plan, what do you need to know before you sign on the dotted line?

• Find out what the maintenance fees will be, and if your complex will soon be facing a "special assessment", which can point to rising fees. To find out, you will need to obtain a copy of the status certificate and review with a real estate lawyer, if possible.
• Talk to current residents, and find out what their impressions are of the neighbourhood, the complex, and the management.
• Find out the name of the builder and check that they are a reputable company.
• Talk to your a Mortgage Broker, and obtain a pre-approval. Before starting your condo search, it is important to know your budget.

Click here for the full article from the Globe and Mail.

Getting your RRSP tax refund in advance

  Tax season is on its way, and many Canadians are looking for ways to maximize their refunds. In this article from the Financial Post, tax expert Jamie Golombek shares some insider tips for getting your RRSP tax refund in advance. Click here for the full article from the Financial Post.