If you’re someone who has your money somewhere other than Vancouver real estate you’re probably familiar with the TFSA. And you probably know the limit has just been doubled to $10k a year.
Critics say this move only helps the wealthy and creates a future tax problem.
Joe Oliver says we should leave that problem for the PMs grand-daughter to solve.
On Tuesday’s The Exchange with Amanda Lang on CBC News Network, the finance minister told Lang that criticism of his recently unveiled budget is unfounded, arguing that the benefits for Canadians today more than offset any future revenue problems associated with it that may or may not ever come to pass.
The doubling of the TFSA limit to $10,000 per taxpayer every year was a core plank of Oliver’s balanced budget. But critics including the opposition parties and private sector economists have said the populist move will create a revenue problem for governments down the line, as more and more investments get protected from taxation.
So what do you think about the TFSA limit increase? A tool only for the wealthy or a bit of extra help for savers?
It’s that time of the week again.
It’s Friday Free-for-all time! This is our regular end of the week news round-up and open topic discussion thread for the weekend. Here are a few recent links to kick off the chat:
–Who wants to try for 200%?
–Rate fears push down dollar
–We love us some debt
–Real Estate School
–Whats a mortgage default?
–The RE-tirement plan
So what are you seeing out there?
Post your news links, thoughts and anecdotes here and have an excellent weekend!
At this time of year most people are thinking about topping up their RSP to get a bit of a tax break, but unfortunately some Canadians are making plans to cash out their RSP before retirement to pay for living expenses.
As politicians wring their hands over Canadians’ lack of retirement savings, figures obtained by Global News from years of tax filings indicate a significant jump in the number of Canadians making early withdrawals from their RRSPs – not for housing or education, but simply to make ends meet.
The biggest increase was from 2007 to 2009, when 1.86 million Canadians took out RRSP cash early. That figure dipped slightly by 2012, to 1.82 across Canada, but remains about 7 per cent above 2007 levels nationally, 12 per cent above 2007 levels in Quebec and almost 10 per cent above in comparatively wealthy Alberta.
Read the full article over at Global News.
Many Franks pointed out what has to be the most bizarre ‘financial facelift’ feature yet over at the Globe and Mail.
You think you have money troubles? Look at these poor people!
[Eric] earns $200,000 a year working one day a week in a medical clinic. But his real love is teaching, which he does one day a week at a university; this earns him $100,000 a year.
“It is financially possible for them to do the things that are important to them, although by doing so, they will run a cash flow deficit of $50,000 a year until the children leave home,” Mr. MacKenzie says. Over time, their annual deficits will add up to more than $1-million in additional debt.
They are living rent free in a relative’s house (they pay taxes, utilities and upkeep) and “regret not having bought a house years ago,” Eric writes in an e-mail.
Eric and Ilsa are fortunate because their parents are willing to put a home equity line of credit on their own home to extend them the $1-million they need to build, and to finance their annual deficit, the planner notes.
It’s the end of another work week and that means it’s time for our regular Friday Free-for-all!
This is our usual end of the week news roundup and open topic discussion thread for the weekend.
Here are a few recent links to kick off the chat:
–Balancing Retirement & mortgage
–27% don’t count mortgage as debt
–Vancouver closet for rent
–Longest interest rate pause
–Higher tax for empty houses?
–Millionaire visa for only 50 people?
–Dipping under a million on the coast
So what are you seeing out there? Post your news links, thoughts and anecdotes here and have an excellent weekend!