B.C. Seniors Advocate Reminds
It is tax time again and the B.C. Seniors Advocate is reinforcing the need for seniors in the province to file tax returns, even if they think they do not make enough income to file. “Seniors may not know that there are several subsidies and tax credits they may be eligible for that are dependent on completed tax returns,” said Isobel Mackenzie. “This is particularly important for low-income seniors who may be missing out on subsidies and tax credits that could help them financially,” Mackenzie added. “The good news is, most government programs that are income based are linked to...
Read MoreB-20 Stress Test
What is it and what does it mean to you? If you have applied for a mortgage or a preapproval since January 2018, you will have been affected by B-20. Prior to rule changes, Canadians could qualify to borrow approximately 22% more than now (other debts and creditworthiness aside). This impacts borrowing capacity of everyone, first time home buyers, those looking to refinance to take some equity out of their property; possibly to pay out higher interest debt or fund a large purchase. If you have an existing mortgage that will be maturing, these new rules will affect you also. Currently, most...
Read MoreBank tips you won’t get
More new mortgage rules came into effect January 1,which have made it trickier to negotiate a mortgage for many Canadians. With a little expert advice, I can help ensure you have a happy new year that keeps you on the path to prosperity for the coming year and beyond. 1. That “best” 5-year rate? It probably isn’t. Fact is, a “best rate quote” is now meaningless, because mortgage pricing is now based on multiple factors. Everything depends on your personal situation. That’s why I start with an in-depth assessment, and then review a broad range of lenders and products for the best...
Read MoreImportant Mortgage Changes.
Purchase or refinance now before rules change in January If you’re looking to buy and will have more than 20 percent down, or if you are considering refinancing, then you might want to do so before January 1, 2018. Why? On October 17, the Office of the Superintendent of Financial Institutions (OSFI) released new guidelines for residential mortgage underwriting at all federally regulated financial institutions. Beginning January 1, 2018, a new ‘stress test’ will be applied to all new conventional mortgages – and not just those mortgages that require mortgage insurance...
Read MoreBank of Canada rate increase
On July 12th, for the first time in seven years, the Bank of Canada increased the overnight rate by .25%, withdrawing some of the stimulus that was needed after the oil price collapse and 2008 financial crisis. Like many, you may have taken advantage of the low rates and invested in the real estate vs the stock market while money was cheap to borrow. We are still in an ultra-low rate environment and an incredibly stable market. Keep in mind this is a relatively small increase, and we have seen rate increases before that are quickly followed by decreases. Whether you took advantage of the...
Read MoreSaving For Retirement.
Women typically earn less than male counterparts for similar positions, often spend a number of years out of the work force to have and raise children and women also have longer lifespans than men on average; so how do women save enough money to have a comfortable retirement? Here are some top tips to achieve this goal: 1) Take control of your finances, be an active participant in managing family finances, do not leave the financial decision making to your spouse. Educate yourself about investing and money management, don’t rely on someone else to provide your financial security. Don’t be...
Read MoreElder Abuse Awareness Day
Canada’s growing senior population means more British Columbians at risk of elder financial abuse, expert says With the number of Canadian seniors at an all-time high—now outnumbering children for the first time in history, according to the most recent census data—financial abuse of older adults is likely to be a growing issue. “In recent years we’ve seen more cases of elderly members of the credit union victimized by financial fraud than we have previously,” says Kevin Haarhoff, a senior investigator of corporate security at Island Savings, a division of First West Credit Union....
Read MorePlanning Ahead.
In today’s times, the chance that someone retires single or spends some time during retirement alone is high. Yes, it could be by choice; but it could be through a critical situation such as an illness, divorce or death. With women living longer than men on average, it is often the women who are left alone. Estate planning before circumstances dictate is vital for the survivor. There are a number of areas that can be addressed prior to the unexpected taking place; for example, spend time documenting what financial institutions hold your bank accounts, investments and safety deposit...
Read MoreIncome Tax Alternatives
If you are filing a personal tax return for 2016, you should know by now, or shortly, if you owe Canada Revenue Agency money or if they will be sending you a cheque. You are probably pleased if you are receiving a refund instead of having to pay, but the less you receive as a refund from CRA, the better. You don’t want CRA to use your money all year and then pay you back your money without interest. If you make regular RRSP contributions throughout the year, you can complete a form with your payroll department at work to reduce the amount of tax that is deducted from each of your...
Read MoreDo one thing monthly
from suggestions that follow, and you will most likely find yourself in a better financial position by the end of the year! 1) Manage your debt – pay off credit cards in full monthly to avoid higher interest charges. 2) Renew an upcoming mortgage maturity wisely, contact a mortgage broker before accepting the first rate offered by your institution. Your financial institution typically offers you a higher rate than available if you shop around. That makes the hassle-free option of signing the renewal document a costly convenience. 3) Review your insurance coverages – life, disability,...
Read MoreLife Insurance.
Women who don’t work outside the home do not need life insurance. Women should let men decide if and how much life insurance they need for themselves. Women should let their significant other handle all of the finances. Okay, I am certain some of you immediately realized I am saying the opposite of what is true, but, unfortunately the mindset that ‘women don’t need to worry their pretty little heads about that’ is still around, although not as prevalent as years ago. Too many families rely mainly on the male’s life insurance policy; this does not factor a woman’s contribution to...
Read MoreRRSP’s, RRIF’s & TFSA’s
The holidays are approaching and 2016 will quickly be in the past. You still have time to do this year-end checklist for retirement plans; RRSPs (Registered Retirement Savings Plans), RRIFs (Registered Retirement Income Plans) and TFSAs (Tax Free Savings Accounts). 1) If you are planning a withdrawal from your TFSA in early 2017, do it now – you will be able to recontribute the amount anytime next year, instead of waiting until 2018 if you withdraw in 2017. 2) If you are 65 or older and do not have a pension to be able to claim the $2000 pension credit on your tax return, consider...
Read MoreKeeping Wills Current
Many things have changed since the ‘good old days’ but, unfortunately, some things haven’t. My Dad died overnight at age 57 from a massive heart attack; to say it was unexpected is an understatement. We were terribly unprepared, both emotionally and estate wise. My Dad had a will, but it needed updating, and everything was in my Dad’s name. The estate took almost a year and a half to settle, and, in the meantime, my Mom had never written a cheque or paid a bill in her life. I talk to many women and couples – it still surprises me how often wills are not done or updated, or, the...
Read MoreDeclining incomes of BC Seniors
Last month I wrote about the recent annual report released from the Office of the BC Seniors Advocate that painted a somewhat bleak picture about the resources available from the public system (government) in seniors care. Now, on the heels of that annual report, comes a new report this week also from the office of the BC Seniors Advocate expressing concern about the declining incomes of BC Seniors. And this problem is particularly acute to seniors in BC compared to other parts of the country. For instance, since 2013 BC senior families saw their annual median income fall 5.7%. For a BC...
Read MoreLife Insurance Tax Changes.
Hello all,time is running out before significant life insurance tax changes effective January 1, 2017. Clients who already have life insurance policies will want to ensure they keep their current status; changes that could impact grandfathering need to be done before January 1, 2017 or that protection could be lost. Here are a few items for both existing and new clients to consider: -If you are thinking of getting life insurance, the cost of insurance will be cheaper now than in January 2017 -if you plan to convert from term to permanent insurance in the future, consider doing it now so you...
Read MoreTax Free Savings Accounts
Let’s talk about Tax Free Savings Accounts (TFSA). The government does not give you many chances to save on taxes, this is definitely one you should be taking advantage of. You have been allowed to contribute to a tax free savings account since 2009, with varying maximum annual contribution limits. You do not have to contribute annually, or even the maximum annually, and all limits can be carried forward to future years indefinitely. TFSA contributions can be made all year, not to be confused with RRSP contributions which have to be made by the 60th day of the year to qualify for the...
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