Looking to buy that vacation home? Where will you get the extra cash? The principal residence exemption may help you; when you sell a home that qualifies as a “principal residence” – a significant amount of savings you can garner in tax savings.
A Registered Retirement Savings Plan (RRSP) is a great way to invest for retirement and reduce income taxes. But, like most good things, it must come to an end. You are required by law to wind-down your RRSP by the end of the year in which you turn age 71. In reality, most people start drawing on their RRSPs for retirement income before then.
Do you remember when your parents sat you down to have “the talk”? At that time, it was the last thing you wanted to hear and likely included some anxious moments and uncomfortable feelings. Well, it could be time to think about another “talk” but, not with your kids – with your parents.
Investing on a consistent basis is important. If you’re going to achieve your retirement and other financial goals, you should consistently contribute to your RRSPs, TFSAs and non-registered investments. “Paying yourself first” through monthly contributions is an excellent strategy to build an investment portfolio.
