Friday, December 30, 2005

Before the Retirement Savings Plans start pitching their services, I thought it would be a good idea to provide some counter balance to their advertising.

Putting advertising into perspective and offer some peace of mind at a time when you're being bombarded with facts figures and fear.

Yes, fear is at the heart of retirement planning advertising. The fear that you won't have enough to provide the lifestyle you desire in your old age. When it comes to retirement planning just remember to factor in all sources of future income in your calculations, and consider what your future expenses will be.

advertisements focused on the 20-40 something market are selling the dream of freedom 55 and claiming you will need a 7 figure nest egg. This is a strategy pushed by financial institutions that you borrowing for a longer period. In the promotion of registered retirement savings plans, banks end up profiting because consumers pour money into these plans instead of paying down their mortgage debt.

Thursday, December 22, 2005

Now is the time for Year end tax savings

With only a few business days before the year end and fewer days before Christmas,this is a reminder to set some time and money aside for tax savings.
Instead of getting caught in the buying frenzy in these last few days before Christmas, look for tax savings opportunities that need to be capitalized on before January 1st.

Consulting your financial advisor now, may identify ways to minimize your income tax liability for 2005 and put more money in your pocket for 2006.

Consider these areas to see if you can minimize your tax burden:
- Tax Loss Selling of stocks, If you have stocks that have lost money and are outside of a tax sheltered investment plan, you can offset your other capital gains by selling your losing shares. Keep in mind there is a minimum period of time you must be out of these shares before repurchasing them in order for the loss to be crystallized.

- Small business purchases. If you're self employed, now is the time to buy those supplies you need, in order to lower your taxable income for 2005.

Thursday, December 15, 2005

Count down for 2005 Tax Savings

As the year end gets ever closer, there are a number of tax deductable payments that need to be made in order to lower your taxable income for 2005.

In Canada,Payments due by December 31, 2005

- Charitable gifts;

- Medical expenses;

- Union and professional membership dues;

- Investment counsel fees, interest and other investment expenses;

- Certain child and spousal support payments;

- Political contributions;

- Deductible legal fees;

- Interest on student loans; and

- Contributions to your RRSP if you turned 69 during 2005 (you will also have to wind up your RRSP by this date).
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