GTA Wealth Finanical News

Informative financial and tax related articles from GTA Wealth Management Inc.

TFSA Holders Subject to Tax Audit Banned From Withdrawals

Tax free savings account (TFSA) holders who are currently being audited by the Canada Revenue Agency are being banned from making withdrawals as dealers are trying to limit their exposure and avoid being responsible for the tax bill.

“Freetirement”, not “Retirement”

Up until recently, retirement was simply thought of as the official end to the working life after which one would collect pension cheques and stay at home. However, with people living longer and wanting to fulfill their dreams and accomplish goals, we are seeing a shift in how people think about retirement.

RRSP options after retirement

All investors realize the value of the Registered Retirement Savings Plan (RRSP). Since 1957, this has been a powerful vehicle for Canadians to save for retirement. Benefits enjoyed by RRSP contributors include tax deductions, tax-deferred investment growth and tax deferral. However, many investors are caught unaware of their alternatives when their RRSP expires soon after retirement - when an investor turns 71 the RRSP must be closed.

Below are three of the major alternatives investors have when it comes to transferring their RRSP funds after the age of 71.

Critical Illness Insurance

While the emotional and life ramifications of being diagnosed with a critical illness can be devastating, so too can the financial consequences. Those affected are suddenly faced with a loss in earnings, which usually compound with costly outlays ranging from medical bills, treatment plans, transportation costs when seeing specialists and potential housing accommodations, among others. Critical illness insurance is a powerful service that can reduce the financial strain faced by those diagnosed with serious illnesses.