NEWS RSS
What the Bank of Canada’s Move Means for You
By Ryan Goldsman, CFP®, PAIP®
This past week, the Bank of Canada (the BOC) increased overnight rates by 25 basis points to 4.5%. What this means for banking institutions is that if needed, they can borrow money from the federal government at the rate of 4.5%. In turn, when these same financial institutions lend money to their clients, a base rate is set across the board. To mirror the BOC, lending institutions set their own prime rates which is used as the base rate.
It’s RSP Season. What Does That Mean?
By PAIP Canada staff
RSP stands for Retirement Savings Plan, and RSP plans are very valuable to many Canadians. At the present time, this is the only registered plan that provides taxpayers with a deduction on the amount(s) contributed into the plan. As an example, if a taxpayer earned $100,000 during the calendar year and contributed $10,000 into their RSP, then he/she would only be taxed on $90,000 of income.
What Really Constitutes a Financial Plan
By Ryan Goldsman, CFP®, PAIP®
“We have something to learn from Domino’s Pizza.”
Over the years the pizza giant tried to reduce costs by tightening a little on the sauce, a little on the cheese, a little on the dough, a little on this topping, and a little on that topping. Eventually, the entire situation blew up in their faces since there was little accountability for the final product… Until the customer chose to go elsewhere with their dollars.
What’s a Tax Deduction? What’s a Tax Credit?
By PAIP Canada staff
We’ve all heard these terms at some point, and in spite of knowing that they’re beneficial for us as taxpayers, most don’t fully appreciate the differences between these two items.
The Home Buyers’ Plan (HBP)
By PAIP Canada staff
Having covered the First-Home Savings Account (FHSA) last week, we’re going to consider the well-established Home Buyers’ Plan (HBP) this week.