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New Programs Ready to Launch

I have been busy developing new topics for speaking and workshops, and they are finally ready.  They are all topics I have worked with at length and am excited to have them ready for this new format!!

 

1.  Creative Retirement

Too often in life we work hard to find enough money, but spend very little time playing with the idea that we may not need the money to make it happen.  I have seen some amazing results by shifting from “How can I afford this?” to “How can I make this happen?”  Creative solutions to normal problems not only make life more fun, they also allow you to spend more time, energy on the things that matter to you.  (This topic comes with lots of fun real life examples).

 

2.  Automate and simplify your cash flow

Budgeting is built as an on going effort that for too many fails.  I believe that your money should work by default, not through long spreadsheets.  I believe your life, once set up should be automatic as it moves you closer to the life that fits best with you

This program will discuss;

Creating a life that speaks to you.

Automating your money, so it keeps working even when you aren’t watching.

Solutions to the common “unfair” spending with couples

 

  3.  Tackling your debt and taking your life back

Debt can be a useful tool, however it can also quickly get out of control.  Here we discuss organizing your debt so you can tackle it in the most effective manor, different alternatives to debt repayment and how to stay free of the debt trap once you arrive.

 

4.  Aligning you money to create an amazing life

A theme in all my work is creating a financial foundation that allows you to live an amazing life.  This topic focuses on the power this has in your life and simple tools anyone can use to create a life that speaks to who they are.

Conversations About Money Blog

This blog has simple solutions anyone can use to create a financial foundation that will support their desired life.  Not sure what you want from life?  This will be discussed here as well.  No products, no sales, just simple solutions.

Check it out at www.conversationsaboutmoney.com

RRSP Calculator

It is common to wonder how much difference your RRSP (Registered Retirement Savings Plan) contribution will make.  Below is a link to a great online tool that can help you plan and make sure you get the most from your money.

http://www.fidelity.ca/cs/Satellite/en/public/education_planning/calculators/tax

RRSP or Spousal RRSP?

One option that RRSP’s (Registered Retirement Savings Account) offer that is underutilized is the Spousal RRSP.  With this you can contribute to the RRSP and get the full tax deduction; however the funds are invested in the spouse’s name.

In the last post I discussed if an RRSP contribution should be made in your name or your spouse’s name.  A spousal RRSP allows you to plan for income splitting later, where contributing in your spouse’s name allows for income splitting today.  With the addition of the option to share pension income in retirement this is not as critical as it once was, but still a worthwhile step.

Income splitting in retirement is important; however this can be of benefit if you need to draw out funds in a low income year.  Although this doesn’t seem likely, it is frightening how often due to illness, passing, injury, layoff, career change or other random events an unexpected need for funds is created.  RRSP’s and Spousal RRSP;s are not ideal for an emergency fund, but often is needed for this purpose.  By balancing out the RRSP’s (yours and your spouse’s) you maximize the potential that you will have the money necessary, in the most tax efficient way possible from an RRSP.

Although the future is full of unknowns, taking simple steps can give you more options and make dealing with issues as they arise much easier.  The best way to ensure you address all the relevant details and possibilities involved in planning your finances is to speak with a professional advisor.

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My RRSP or My Spouses?

When making an RRSP (Registered Retirement Savings Plan) contribution we often just set it up in our name.  However if you are married or common-law, working towards your financial goals can have a huge impact on your financial life.  If you and your spouse are working together towards your financial goals and considering an RRSP then this simple step could save you a lot of tax.

To understand how this works, we need to understand how our tax rates work.  Tax rates increase as your income increases at set income levels.  What is important to note is as the rate goes up it is always on the next dollar earned.  This means if you make $30,000 or $130,000 you pay exactly the same amount of tax on the first $30,000 in both cases, the only difference with $130,000 is you need to also pay tax on the next $100,000 as well.

So contributing to an RRSP in your name or your spouse’s name becomes a tax question, who saves the most tax?  In many cases the simplest way to save on tax is make both incomes the same.

If a couple has the annual earnings of $150,000 a year and they each made $75,000 they would pay the same amount of tax each and this would be the lowest amount of tax  they could pay on $150,000.  If you increase either income as it moves into the next tax bracket, even if the total income still equals $150,000 the total tax payable increases as the income shifts to either spouse.

With this we know that it is optimal to bring both incomes to the same level.  This is where RRSPs can help, if you want to contribute to an RRSP, contribute to the RRSP of the higher income earner.  This will bring the higher income earners tax bracket down, once you and your spouse are being taxed at the same rate you can apply any additional RRSP contributions equally to both spouses RRSP’s.

Example;  If one spouse makes $60,000 and the other makes $50,000, if you were going to make up to a $10,000 RRSP contribution you would want to make it on the $60,000 income, any more and you would want to split it equally between both spouses.

Considering the tax consequences of any of your important financial decision, especially investments are important when planning your finances.  Income splitting now and in the future is a simple income splitting tools commonly overlooked.

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Budgeting Is Broken Event

Cash Flow

Budgeting is Broken

Is There Too Much Month Left To the End of Your Money?

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