01/24/2023
new year often signifies new habits, goals, and a chance to regroup. As we've recently felt, time flies! To help make this year your best financial year yet, here are a few things to consider:
1. RRSP Contribution Deadline is March 1, 2023
If you're looking to benefit from a larger tax return, pay less income tax, save for a future property, or start a long term habit for retirement, now is a great time. The deadline for the year 2022 is quickly approaching!
2. Life Insurance Review or as a savings vehicle
If you are in need of a review to ensure you have the right beneficiaries, amounts, and types of coverages, let's set up a quick review! I consistently come across families who are over paying or simply don't understand the policies they own and if it is right for them. If you're not already set up with one, a life insurance policy can be a great way to save tax-sheltered money for your future retirement, or to pass onto the next generation. For folks who want to set up their children for future success and financial independence, kids can get them too! Benefiting from years of compound interest and investment growth.
3. TFSA Limit Increase
Every calendar year we see an increase to our personal TFSA limits. For many people, this can be the most flexible tool to use for short, medium, and long term savings. This new limit means that a taxpayer who has never contributed to a TFSA and has been eligible for one since its inception will have a cumulative contribution room of $88,000.With the recent volatility in markets, and many seeing recoveries year to date, a review of what you are currently invested in is always practical.
4. Raises, Inheritance, and Life Changes
Have you gone through a major life change in the last year or two? For any life change such as a family dynamic, career move, sale of home, health challenge, etc. it is wise to review your finances to make sure you're on track for your goals. Keep this in mind for the near future!
5. RESP Grants
If there wasn't extra cashflow in budget in previous years to save in the Registered Education Savings Plan, 2023 could be the year. A contributor can make up for previous years and receive the grants that go along with contributing to a child's education. On top of the grant money, you're able to invest inside of this tool to receive investment growth, which can dramatically effect how much is saved when that student is ready to use it!
If you have any questions or would like to set up a phone call or virtual meeting to review your current plans, make any changes, or start new habits, please reach out. Wishing you and your family all the best!
