Advisorsavvy Blog

If you’re approaching retirement, or planning in advance of your retirement, you might be wondering how to calculate CPP payments. Afterall, many Canadians rely on the Canada Pension Plan for income when they retire. The amount you receive depends on various factors, such as how much you’ve earned in your life and how much you paid into CPP. To learn more about how to calculate CPP benefits, continue reading below. What is the Canada Pension Plan (CPP)? The Canada Pension Plan (CPP) is a retirement pension offered by the Canadian government. It is a monthly, taxable benefit that replaces part of your income upon retirement. If you qualify for CPP, you’ll receive the benefit for the remainder of your life. To calculate CPP, the government evaluates your career in Canada. The Canada Pension Plan Act was enacted in April 1965. The CPP program has been benefiting Canadians ever since. How about the Quebec Pension Plan (QPP)? The Quebec Pension Plan

As a business owner, you are likely aware of numerous tax benefits available to you. The main one is being able to deduct expenses against the income you earn. But did you know you can also claim a tax deduction for depreciation? Yes, it’s true! The deduction is called Capital Cost Allowance, or CCA for short. If your business has depreciable property, such as a building, vehicle or equipment, it wears down over time. For accounting purposes, this is known as depreciation. However, there is also a tax deduction available for the same purpose. Continue reading to learn more about Capital Cost Allowance in Canada. What is a Capital Cost Allowance (CCA)? The Capital Cost Allowance definition is a tax deduction available for depreciable property. When you acquire an asset, such as a car, building or software, it wears out or becomes obsolete over time. Owning an asset is a benefit, but also carries risks with ownership. The Canada Revenue

While planning for retirement, there are many decisions to make! What age to retire, how much to save, and most importantly, what kind of lifestyle you’re going to live. We all know you’re going to enjoy plenty of leisure activities with your new free time, but where will you live? Sunny Florida may appeal to you, but moving there may leave you far from a community you’re familiar with in Canada. If you’re interested in staying or moving to Ontario in your retirement, we explore the most enjoyable yet cheapest places to retire. When can you retire in Ontario? Retirement depends on various factors. There is no special retirement age in Ontario, rather it depends on savings and lifestyle. Some are fortunate to retire early because they earned and saved a lot of money for a longer period of time. Others work throughout their whole lives because they’ve found a passion or a ‘calling,’ as opposed to simply working to

Whether you’re thinking of a lakefront cottage or a peaceful cabin in the woods, recreational homes are synonymous with summer fun, relaxation, and quality time with family and friends. Once you’ve decided you’re in the position to buy a cottage, you might be asking yourself whether there is actually a good time to make the leap. Fall, once everyone has closed up for the season? Or maybe early spring, when owners have decided they don’t want to (or can’t) commit to another summer. We take a look at cottage ownership, what costs are involved, considerations you should think about before buying, and whether there actually is a good time to take the plunge. When is a good time to buy a cottage or vacation home? Many experts say the best time to buy a cottage or vacation home is in the fall — and it makes sense. As HGTV explains, people who had been thinking of selling probably wanted to

Bank accounts help protect your money and give you the peace of mind that it is safe. Most of us also use them to pay bills, deposit paycheques, send money to friends and family, and much more. The accounts of choice for many Canadians? No-fee bank accounts. Unfortunately, a major drawback with many banks is that they tend to charge a lot in terms of fees. While it might only be a couple of dollars a month, this can add up over time. Some end up paying hundreds of dollars every year in bank fees of one kind or another. That is a significant chunk of change, and most of us would rather have that in our pockets than pay it to the bank. This guide is going to go through some of the best no-fee bank account options for Canadians. What is a no-fee bank account? A no-fee bank account is simply a bank account that doesn’t charge a

You’re in the market to buy a home – congratulations! While the process is exciting, there are so many decisions to be made. One decision is whether or not to work with a mortgage broker. If you prefer to work with a broker, you may be wondering who’s the best mortgage broker in Canada. Certainly, there are a ton of options available and the best option for you depends on your homebuying goals and preferences. Looking for something a bit different? Meet Canada’s first online mortgage broker, nesto. To learn more about the company, their products, and obtaining an online mortgage, continue reading below. What is nesto? nesto is an online Canada mortgage brokerage company. Similar to other mortgage advisors, nesto connects homebuyers with mortgage lenders to allow them to purchase their dream home. They promise their customers the lowest mortgage interest rates. It’s their belief that a home is a crucial part of life and their clients shouldn’t have

A note from Advisorsavvy: Credit counselling is just one of many debt relief options available to Canadians. While Advisorsavvy does not feature any credit counsellors on our roster of professionals, we do havea team of Licensed Insolvency Trustees ready to help you with a consumer proposal —an often-overlooked alternative to bankruptcy. Are you looking for debt solutions in Canada? Credit counselling is one of various financial services available on the market to resolve debt. Working with a credit counsellor allows you to eliminate debt and develop healthy financial habits for the long run. While these services are in place to help you, it’s up to you to execute and stay dedicated to your financial plan. To learn more about credit counselling in Canada, continue reading below. What is credit counselling? Credit counselling is a service offered to individuals who are struggling with their finances. A credit counsellor can help people improve their credit score, create a realistic budget, pay off

The ability to give back to society through charitable donations is a fulfilling experience. Not only do you get a heart-warming feeling, but there are also various financial benefits to donating. More specifically, charitable donations provide generous tax breaks in Canada. Learn more about optimizing your donations below. Charitable donations and tax deductions in Canada: An Overview The technical definition of a charitable donation is a gift of cash or property to a nonprofit organization to help them achieve its goals. As a result, the giver of a donation receives no economic value in return, except for generous tax deductions and breaks. A nonprofit organization (NPO) is a legal entity that is in operation for a collective, public, or social benefit. In contrast, a for-profit organization is a legal entity in operations with the goal of earning financial profit. In 2020, Canadians donated just over $10.5 million dollars to charities, according to Statistics Canada. Trends show that the older Canadians

How many of us have been planning for retirement since the first day of work? (*raises hand*) But have you researched the top retirement planning tips to help maximize these plans? The nature of work has drastically changed in recent decades. For starters, it’s now quite normal to work at a variety of companies over the course of a career. Secondly, pension plans were a lot more common in previous years. According toStatistics Canada(as reported by the Financial Post), only 37% of Canadian workers were covered by a pension plan in 2019. Suffice to say that the days when a worker would stay at the same job their entire career, and walk out of the building at 65 and into acomfortable retirement, are quite different now. The fact is, the vast majority of retirement savings in this country are self-driven — illustrating the crucial need for proper retirement planning. How do you plan for retirement? There are several retirement planning