The beginning of the New Year is the perfect time to think about ways to optimize your financial and tax plans and, especially, to maximize your RRSP, TFSA and RESP contributions.
These savings plans offer numerous benefits and they can help you to plan your future around the life projects that are important to you and your family.
Here is a quick overview of their respective features:
|Tax deferral||Tax-free interest and capital gains||Tax deferral and government grants|
Beginning of the year advice for your professional and personal finances
Other tax-related subjects may be of interest to you. Here are some which you could discuss with your advisor.
- If you are incorporated, you are undoubtedly aware of the changes that will be made to certain tax measures affecting private corporations beginning in 2018, including with respect to the earnings you can withdraw from your corporation, such as income sprinkling. To learn more, read our latest update on these developments and speak with your advisor, who can examine with you the impact of these measures in your situation.
- Quick planning reminder: If you are incorporated, the federal tax rate on the first $500,000 of income generated by your business will gradually decrease in the coming years, from 10.50% in 2017 to 10.00% in 2018, then to 9.00% in 2019.
- If you have a trust, know that it must also file an annual income tax return before March 31, 2018.
- Did you lend money to your spouse or to a trust in 2017? Don’t forget that you must receive interest payments at the rate initially stipulated in the agreement by no later than January 30, 2018.
- You are one year closer to your retirement. We encourage you to take the opportunity to review your investment policy with your advisor. Are your risk tolerance and your investment horizon still the same? Is your asset allocation still suitable for your situation? Have major events changed your goals or your retirement plan? Take advantage of your advisor’s expertise to update your portfolio so that it accurately reflects your current professional and personal situation.
Get expert planning assistance!
Don’t hesitate to call on your Wealth Management Advisor for optimal planning of your RRSP, TFSA or RESP contributions, or to discuss any other aspect of your personal and professional finances.
We wish you an excellent 2018!