Did you know that between 1984 and 2009 Canadian real average household debt more than doubled? Mortgage debt accounts for most of this, and as interest rates decreased during that period, the household debt load increased. Things really took off in 2002 and we all know where things ended up in 2008 and 2009. Now, as we dust ourselves off and look around, it is important to reflect upon what we have learned, and to ask: Where is this heading?
Financial planning, like so many things in life, can be more stressful to think about than actually do something about. Once you get to it, though, it’s actually quite intuitive: Before you ever add or subtract a number, it begins with laying out a few of your long – and short-term goals.
Year End Planning: Reduce OAS Clawback with T1213 (OAS)
Cash-strapped seniors suffering from prolonged low interest environment will want to ensure that cash flow is supplemented from guaranteed sources like the Old Age Security. If a clawback based on prior year income levels is part of the equation, we can help by applying for a reduction in this recovery tax using a newly updated form T1213.
Recent study done by the Task Force on Financial Literacy's report to the Finance Minister included 30 recommendations to enable taxpayers to maximize their knowledge, skills and confidence in dealing with their finances, including the a greater uptake in government programs designed to assist Canadians. Some of those programs are initiated by filing a tax return, which is complicated for most.