Number 1: Bottled Water Why spend more money on bottled water, while tap water straight from home is just as good or sometimes even better? Although tap water is not exactly free (since you do have to pay an annual utility fee to local government for water service), it’s way cheaper than bottled water....
Before we begin this topic, we will briefly discuss how HBP works. Then we will talk about how to maximize this tax-saving strategy toward the end of this article. Home Buyers’ Plan (HBP) allows first-time homebuyers to withdraw RRSP to purchase or build a home without having to pay tax on the withdrawal. RRSP...
Last month, when I received my RBC VISA card monthly statement, I saw an advertisement about redemption of RBC Rewards points toward TFSA. Seems very interesting, but is it worth a try? I decide to take a close look. Here is the advertisement: RBC Rewards points can now be redeemed toward your Tax-Free Savings...
Seven Highly Effective Tips for Savings at Grocery Store Here are a few strategies that I implement every day to reduce my monthly grocery expenses, which include not only the groceries but also expenses for dinning-outs, personal/household hygiene stuff, and occasionally over-the-counter medication. Keep track of receipts. First and foremost, keep all the receipts...
What’s an RRSP Registered Retirement Savings Plan is a retirement plan that you or your spouse or common-law partner establish and contribute to. RRSP contributions are tax-deductible;ie, it can be used to reduce your income tax. RRSP vs CPP Why should I invest in RRSP when I can get CPP (Canada Pension Plan) benefit...
Many Canadians have seen their RRSPs take a significant toll in the markets during this Global Recession. Most can do little more than hope for a quick recovery. But there is another option. It’s called Individual Pension Plan (IPP). What’s IPP? IPP stands for Individual Pension Plan. It is perhaps the least known, yet...
Here is a list of cars that may save you some money. Most of them are hybrid cars which offer great mileage. With recent dropping in gasoline price, the long-term savings from mileage may not be obvious. In addition, hybrids may be more expensive to fix when they break down. The maintenance frequency and...
Turn unclaimed bank balances into your savings! Perhaps this happens to one of your deceased family members. Unclaimed Bank Balances An “unclaimed balance” can be in the form of a deposit account, bank draft, certified cheque, deposit receipt, money order, GIC, term deposit, credit card balance, or traveller’s cheque. When there has been no...
Which investment is better—RRSP or TFSA? This article will highlight some important differences, flexibilities, and restrictions. Registered Retirement Savings Plan (RRSP) Eligibility: Any Canadian residents with earned income. Contribution Limit: 18% of earned income to an annual maximum ($21,000 for year 2009; $22,000 for year 2010); unused contribution room is carried forward and accumulates...
How is RRSP Deduction Limit / Contribution Room Calculated? Long Definition: a taxpayer’s RRSP deduction limit for a year is equal to 18% of the taxpayer’s earned income for the previous year (to a maximum amount) minus an amount in respect of benefits that accrued to the taxpayer under registered pension plans (RPPs) and...
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