A Few Financial Planning Tips…

As we approach Fall, we start to think of the end of the year. Here are a few financial planning tips as we approach the end of 2023.

RRSP to RRIF

Do you know of anyone turning age 71 this year? RRSP contributions must be made by December 31 of the year you turn 71. However, RRSP deductions can be carried forward indefinitely and spread out over several years to reduce taxable earnings in retirement.

Further, you can contribute to a spousal RRSP up until the year your spouse turns 71 if you have available RRSP contribution room – even if the contributor is over 71.

Tax Planning

Fall is a good time to look at your RRSP contributions if you wish to make additional contributions before the March 1^st, 2024, deadline.

Tax loss selling or harvesting is a strategy that is often employed before the end of the calendar year. Tax-loss selling is a method of selling investment assets / securities that have decreased in value to create a loss, which can then be used to offset capital gains in other areas. Please consult your financial advisor for more details.

Estate Plan   

Provincial rules apply if you die without a plan, the government implements one for you. If you die without a Will, you’re deemed to have died intestate and each province has their own set of rules called the Intestacy Rules as to how your assets will be distributed.

The end of the year therefore is a good time to review your Will, Power of Attorney for property as well as your Health Care Directive. Has there been any material changes in your family during the year.

A new addition to the family, marriage and or divorced can all be considered material changes. As your children age, you may need to update your beneficiary designation.

You should change your Will if your executor becomes incapable of acting as your agent. Also, sometimes people want to add or remove beneficiaries.

Budgeting 

Summer is often a time when we spend more money than usual, and this year was no exception with many people returning to their regular vacation schedules and with the economy and businesses returning to pre pandemic activity levels. This is a good time to make a detailed list of your income and expenses to identify areas that you may want to trim or cut back.

Check your credit report!  

After the summer spending, it is a good idea to review your credit report to make sure that all the accounts that are listed belong to you and are reported correctly. Scammers know when to take advantage of consumers and the summertime tends to be the peak for fraudulent activities.   

Written by

Leric Bishop,  Investment Advisor Associate

Please note that these are tips written in simple terms. Please consult your financial advisor or Portfolio manager for more details.