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 paycheques. So, you really could be keeping more money in your pocket each payday instead of receiving a lump sum after you file your taxes.
Some people like the lump sum and use it as a bonus or for holidays, some use the refund for their annual mortgage prepayment without penalty, some use it to boost their TFSA (Tax Free Savings Account), but, consider this option that would put you in a better financial position at the end of the year.Have you
You could take the extra cash that you are savings every paycheck and putting it to use immediately; for example, increase your mortgage payment by that extra amount, contribute to your TFSA on a regular basis (same frequency as your paychecks) and you can dollar cost average into the markets and be making money all year, or, you could take the savings and invest in your own emergency or holiday fund and make a few dollars in interest. Take charge of your financial future in 2017, call an advisor today!
Carol Plaisier, CFP®, FMA, AMP | Investment and Insurance Advisor
HollisWealth | a division of Scotia Capital Inc. | HollisWealth Insurance Agency Ltd.
174 Morison Ave., P.O. Box 1391, Parksville, BC
T 250.248.2399 F 250.248.2998
carol.plaisier@holliswealth.com www.carolplaisier.com
This article was prepared solely by Carol Plaisier who is a registered representative of HollisWealth®. HollisWealth is a trade name of Scotia Capital Inc. and HollisWealth Insurance Agency Ltd. HollisWealth is a division of Scotia Capital Inc., a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. Brokerage services provided by HollisWealth are provided through Scotia Capital Inc. Insurance products provided by HollisWealth are provided through HollisWealth Insurance Agency Ltd. ® Registered trademark of The Bank of Nova Scotia, used under licence The views and opinions, including any recommendations, expressed in this article are those of Carol Plaisier alone and not those of HollisWealth®
Registered Trademark of The Bank of Nova Scotia, used under license. The comments contained herein are general in nature and professional advice regarding an individual’s particular tax position should be obtained in respect of any person’s specific circumstances.
See all articles by Carol Plaisier