Monthly Archives: April 2015

A post-budget TFSA primer

Adrian Mastracci, KCM Wealth

By Adrian Mastracci, KCM Wealth Management

Special to the Financial Independence Hub

Measures from last week’s Federal Budget provided the TFSA a healthy shot in the arm.”

Many investors are wondering whether to pursue a TFSA or RRSP strategy. Quite simply, the TFSA, which started in 2009, complements the RRSP and RRIF.

It need not be an either/or approach.
Wise investors embrace the TFSA in pursuit of long term goals.

We present our TFSA primer:

How the TFSA works


• Canadian residents, age 18 or older, who have a Social Insurance Number can open a TFSA.


• TFSA contributions can be made in cash or “in kind.” The deemed disposition rules for “in kind” contributions are the same as those for RRSPs.

• Maximum TFSA deposits are as follows: Continue Reading…

The 5 money secrets of happy retirees

Mature couple sitting back to back on a sofa with laptop computers

My latest MoneySense column in the print edition of the magazine is now available online, entitled 5 Money Secrets to a Happy Retirement. Click on the link for the full column but note that Wes Moss is no stranger to the Financial Independence Hub.

Several of the books mentioned in the column, or books like them, have been featured here in the Hub’s Review section. They include (with links to the Hub reviews): Continue Reading…

A procrastinator’s guide to filing your taxes by the looming April 30th deadline: 1 in 5 still scrambling

H&RBlockOne in five Canadians are scrambling to make this year’s tax-filing deadline, which is now just four days away.

You probably don’t need this site to remind you that the deadline is midnight this Thursday: April 30, 2015 is the last day for most Canadians to file their 2014 tax returns. (The American tax-filing deadline of April 15th has already come and gone).

According to an H&R Block survey, Canadians are master procrastinators when it comes to taxes. And the tax preparation firm is offering a free online solution to those same procrastinating filers.

3% won’t make the deadline

The survey revealed that one in five Canadians say they file just in time, with 3% saying they miss the deadline altogether. Who are the worst offenders? Continue Reading…

Weekly wrap: TFSA fever & the looming election, how robo-advisors affect human advisors, and more

“Glad I saved up in my super-sized TFSA for these new shoes. These are almost twice as big as my old pair.”

By Jonathan Chevreau

Judging by the post-budget media coverage, Tax-free Savings Accounts or TFSAs are now a household name. Little wonder, with nearly 11 million Canadians enrolled in them. (For any American readers, the TFSA is the equivalent of Roth plans: no tax deduction going in but no tax going out. The TFSA was introduced in Canada in January 2009).

Seeing as the TFSA is shaping up to be a major political issue, this topic won’t be going away any time soon. On Twitter following the budget, I highlighted several note-worthy pieces that touch either on the mechanics of the new $10,000 TFSA limit, the political implications or both.

Yes, Ontario followed up with a budget of its own but by definition that’s a bit “provincial.” You can find all you really need to know by reading Andrew Coyne’s piece in the National Post: Little Difference Between Ontario and Federal budget, until it comes to deficit.

No, the big kahuna was the federal budget and – as part of the Findependence Trifecta I wrote about on Tuesday – the TFSA expansion. As regular Hub readers know, we were quick to make the extra $4,500 contribution and by Friday the papers were reporting finally that CRA had blessed the strategy of topping up the TFSA immediately. For instance, the Globe’s Bill Curry in CRA clarifies time line of new limit. And John Heinzl did a Q&A with CIBC’s Jamie Golombek on some of the mechanics of transferring securities in-kind from taxable accounts to TFSAs

Over at the National Post, columnists did a good job explaining the political battles that are swirling around the TFSA, Continue Reading…

Become financially independent to enjoy life!

money problemsBy Good Nelly,

Special to the Financial Independence Hub

It is no longer a universal vision to work towards having a better retired life. Instead, everyone is trying to achieve financial security or independence. This means you should have sufficient resources so you can choose whether or not to work on a daily basis; or, you can choose work where you’ll get complete job satisfaction, instead of worrying about the amount of your monthly paycheck. Here’s a discussion about why you need to work towards having financial independence or “findependence,” and how you can achieve it.

Why should you make Findependence your ultimate goal?

Continue Reading…