Tax Strategies

No credit

As tax season begins, the issue of interest deductibility comes once again to the top of mind of both tax advisors and their clients. Just over a decade ago, the tax law changed so that the interest expense on student loans, while not actually tax-deductible, became eligible for federal and provincial non-refundable tax credits, which […]

By Jamie Golombek |March 1, 2009

3 min read

Tax News

Think leveraged investing in down markets

Given the market setbacks of recent months and the gloomy economic news that still dominates the headlines, it is not surprising that many investors simply want to sit on the sidelines for the time being. But many of your clients might be better advised to try to recapture the mood and the method that prevailed […]

By Michelle Munro |February 10, 2009

7 min read

Market Insights

Pitfalls of leveraging

The notion of borrowing money to invest likely isn’t first and foremost on most people’s minds in a down market. But I’ve come across yet another study touting the benefits of leveraging retirement savings. The release of the June 2008 working paper, Life-Cycle Investing and Leverage: Buying Stock on Margin Can Reduce Retirement Risk, written […]

By Jim Otar |February 1, 2009

6 min read

Estate Planning

TFSAs and estate planning

Much has been written about the new tax-free savings accounts: the accumulation of tax-free income, the ability to re-contribute withdrawals and the capacity to access funds without impact to federally sponsored benefits. But what happens to the TFSA on death of the TFSA holder? Generally, clients who have a TFSA can name a “successor holder” […]

By Wilmot George |January 19, 2009

4 min read

TFSAs and non-registered accounts

Should clients put their money into a TFSA or a non-registered account? Although the answer may seem obvious, a discussion about why the TFSA is advantageous has its merits. In two respects, TFSAs and non-registered accounts are identical. Account holders must be 18 years or older (technically, there’s no age requirement for non-registered accounts, but […]

4 min read

TFSA vs. RRSP: How should your client save?

Come January, one of the biggest questions facing financial planners will be “where should your clients put their money — into TFSAs or RRSPs?” There are obvious and not-so-obvious similarities and differences between the two, and this column will evaluate the comparative advantages and disadvantages of TFSAs as well as show how they can be […]

5 min read

Protecting RRSPs from creditors

Many people in the financial industry take the view that Registered Retirement Savings Plans (RRSPs) are inferior to registered pension plans (RPPs). The reason? Creditor protection. Members of RPPs have historically been able to sleep a little better at night, knowing their retirement plans cannot be seized by any personal creditors they may have, unless […]

4 min read

Advisors should embrace the TFSA

On June 18, the federal government passed its 2008 budget bill into law, making the Tax Free Savings Account (TFSA) available to millions of Canadians beginning in January 2009. This day likely failed to resonate with the average Canadian, but I can tell you I certainly paid attention. Ever since the federal government announced the […]

By Michelle Munro |September 2, 2008

5 min read

The benefits of formal trusts

In many Canadian families or family-owned businesses, a simple and straightforward transfer of assets between generations is still very effective. But, as the complexities of today’s society bring issues of asset control, protection or tax reduction to the planning forefront, the use of formal trusts is increasing. Trusts are structures through which property or assets […]

By Carol Bezaire |August 15, 2008

4 min read