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Making regular contributions to a Registered Retirement Savings Plan can be a great way to build your net worth. But what if you’re facing a cash shortfall: Is a withdrawal a viable option? Kim Parlee walks us through some of the hidden costs of early RRSP withdrawals. Head here for more information on RRSPs.
Having an automatic monthly deduction to your RRSP or TFSA gets your money working for you sooner than contributing one large sum at the end of the year. It may even help your retirement savings grow larger. If you already use automatic deductions, try to increase them each year. Even a $5 increase can make a large difference to your retirement savings over time.
Originally published April 19, 2016.
Contributing to a grandchild’s RESP is a great way to fund their post-secondary education. But if that child decides not to continue with their schooling and the RESP is closed, there could be tax implications for people over the age of 71. Kim Parlee highlights a few things to keep in mind.
You or your child have worked hard, and now have learned that all that diligence has earned a scholarship. Congratulations, but guess what? That scholarship may be taxed. Kim Parlee discusses what you should know about your scholarship and tax rules.
If you are the caregiver of an adult relative, even if they don’t live with you, you may be able to claim the Canada Caregiver Tax Credit. Kim Parlee talks about how you may qualify, and how much you may claim.
