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The flexibility of the Tax-Free Savings Account (TFSA) is beyond compare, because users have so much leeway to make the most of their accounts. One salient feature is international diversification. It means you can hold U.S. and other foreign securities in your portfolio.
Some financial experts say it makes sense to set aside home country bias if the chosen foreign assets can deliver higher returns than their Canadian counterparts. However, not all would agree that this asset-allocation strategy is beneficial to TFSA investors. What’s the point if there are tax consequences in a tax-advantaged account?
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A retirement crossroads
Canadians on the cusp of retirement often struggle with one question above all others: when should they officially start living off their savings?
Many choose to retire on schedule, at 65, drawing income from a mix of their Registered Retirement Savings Plan (RRSP), Canada Pension Plan (CPP) and Old Age Security (OAS). What they may not realize, however, is their contributions will continue growing between the ages of 65 and 70 – if left untouched.
Waiting to access these assets has clear financial upsides: Canadians who delay collecting their CPP can see payments rise by 0.7% per month after the age of 65, up to a maximum of 42%.
Paul Delean: Filing your taxes late could induce unpleasant penalties montrealgazette.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from montrealgazette.com Daily Mail and Mail on Sunday newspapers.
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Ownership of joint bank accounts and the tax consequences of property transfers were among the topics raised in recent reader letters. Here’s what they wanted to know.
Q: “In my father’s will, his wishes were to divide his assets equally between my sister and me. The assets were my parents’ home and money in his bank accounts. Unfortunately, one of the bank accounts was a joint account with my sister, which meant that on paper I can only receive a quarter of it. Is this how it gets divided or can I actually get half of the money in that account? The will clearly stated that the assets should be divided equally.”