The TFSA’s $6,000 Contribution Limit Is Here!
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It’s official. Canadians now have a new contribution limit to add to their Tax-Free Savings Account (TFSA) of $6,000 as of Jan. 1, 2021. The new addition is the latest since the TFSA program was introduced back in 2009. This means Canadians will now have an increase from the current $69,500 to a whopping $75,500.
But what should you do with it?
The world we live in is a volatile one, never mind the markets. Even though the stock market is trading near pre-crash levels, investors need to be very careful. Economists believe further market crashes are coming, and I tend to believe them. Even before the pandemic there were signs of an impending recession. Instead, we got a pandemic that led to even more global debt. By the end of the year, global debt is estimated to reach an incredible $277 trillion!
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Despite the encouraging news on the vaccine’s effectiveness, the distribution of the vaccine could be challenging. Industry experts project the widespread distribution of the vaccine could not happen before mid-2021.
Meanwhile, COVID-19 cases are rising worldwide, which could prompt governments to reimpose restrictions, thus slowing down the recovery rate. Further, the widening gap between the economy and the equity markets could lead to a correction. Amid the uncertain outlook, investors could supplement themselves with passive income by investing in safe monthly-paying dividend stocks.
NorthWest Healthcare Properties REIT
First on my list is
NorthWest Healthcare Properties REIT (TSX:NWH.UN), which invests in healthcare real estate. Despite the pandemic-induced disruptions, its occupancy and rent-collection rate has been on the higher side. Further, the company’s 80% of the revenue is supported by public healthcare funding, th
The Canada Revenue Agency Is Taking Your CERB Back if Your Income Is Below This
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If the Canada Revenue Agency (CRA) can’t confirm your eligibility for the Canada Emergency Response Benefit (CERB), you might receive a letter to pay or return the benefit. Self-employed individuals, in particular, are receiving such letters.
The CRA says self-employed individuals who did not earn $5,000 in net income in 2019 or the 12 months leading to the application date are not qualified to receive CERB. Many were shocked to receive the collection letters that encourage payments by December 31, 2020. The CRA will not charge penalties or interest.
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Having a secondary income source can boost your finances significantly. It not only acts as a valuable lifeline amid challenges, but it also provides financial freedom and eliminates the fear of economic hardships in the future. So, if you are planning to start a secondary income source in 2021, consider dividend-paying stocks.
Investing in stocks is cheap and doesn’t require lots of upfront money. Besides, if you own a high-quality dividend stock, it could help you earn a lifetime of passive income that would continue to grow with you.
Let’s focus on three top TSX dividend stocks with resilient cash flows that offer monthly dividend payouts.
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The TFSA contribution limit in 2021 will be $75,500. Since its inception in 2009, the CRA has increased the TFSA contribution limit every year. The CRA started the TFSA in order to encourage savings. And it has done just that. Today, the TFSA contribution limit is significant and meaningful. At $75.500, investors can shelter a lot of money from taxes.
So, an additional $6,000 TFSA contribution room will be added in 2021. Have you fallen behind in your TFSA contributions? Don’t worry, here is a list of top stocks to buy. Are you up to date in your contributions? Well, then in 2021, you will have to decide what to do with the extra $6,000 TFSA contribution room.