2021 Contribution Limits and RRSP Top Up Deadline

Author: Vince Olfert, MBA, CIM, CFP® – Certified Financial Planner®

January 1st of each year often brings expectations of new things to come and the hope of new beginnings. 2021 is no different, though with some added variables such as masks and hand sanitizer. This new year also brings financial changes, such as new TFSA and RRSP limits and deadlines. Below are financial contribution limits and dates to remember for this year.

Things to Remember:

  • TFSA – If you are over 18 years old in 2021, as of January 1st you get an additional $6,000 of contribution room. As well, any unused room AND any money taken out of your TFSA in the previous calendar year can be reinvested into your TFSA. If you have been eligible for the TFSA since its inception and have never contributed, your available contribution room is $75,500.
  • RRSP – Contributions made to your RRSP account in the first 60 days of 2021 (March 1, 2021) can be applied to your 2020 tax return. The 2020 RRSP contribution limit is $27,230.
  • RDSP – January 1st means the new calendar year grant and bond money is eligible for you or a loved one who qualifies.
  • RESP – January 1st means the new calendar year grant money is eligible for your children’s education. $2,500 of contribution provides a minimum 20% grant ($500). There may also be past year catch-up available if you have not maximized your child’s contributions in previous years. This grant is no longer available the year your child will turn 18 years of age.

Feel free to reach out if you have any questions. Looking forward for what is to come in 2021.

Connect Wealth is an independent financial planning firm that offers holistic advice to clients based on their current goals and future aspirations. We use well-established workflows and cutting edge technology to maximize planning efficiencies while simplifying the process for clients. Learn how you can maximize your financial opportunities at www.connectwealth.ca

Charitable Giving Takes on a New Look

Charitable gifting is about to change. As you may know, currently you can donate cash and receive preferential tax treatment.  For every dollar you donate over $200 you would get a tax deduction of $0.437.  In 2006, the benefits of donating stocks in-kind became substantial because if you donate the stock in-kind to a charity the capital gains of that stock become non-taxable to you but you still receive the full charitable tax deduction.

Projected to come into effect in 2017, the donation of Real Estate profits and profits from the sale of private companies will receive the same tax benefit that are currently available to public shares. This  change could be a game changer for tax planning, strategic gifting and estate planning.

So how does this work? Read more

/by

Should I Buy or Should I Lease Now?

leasing-a-car

If you’ve ever gone through the process of researching a new car, you’ve likely considered your options: should I buy or should I lease? Although there are many working parts to both scenarios, it really comes down to personal preference and current situation. Recently I went through this same decision process last fall when we were looking for our next car. How did we make our choice? Let’s first take a deeper look into the main differences between buying versus leasing. Read more

/by

Succession Planning – have you planned your exit strategy?

You may have built a successful business but have you planned your exit strategy?

Preparing for succession may not be at the forefront of every business – but it should be.  Having a succession plan allows for employees, owners and the company itself to have a clear direction on how the company will move forward in its life cycle. Often, the best way to explain a concept is to share a real life story. Recently my Father, Phil Singer, and I were published in a nationally distributed magazine called Collision Quarterly. It is directed to members of the ARA (Automotive Retailers Association).

The article describes how our team at Singer Olfert assisted my Dad in the selling of his business a few years back. I will summarize the two-page article and you may click the link to read more about our story. Read more

/by
Link to: Contact us

Have Questions? We’re here to help!

Our advisors are always ready to weigh-in on your financial strategies and help you develop the wealth management plan that’s right for you.

Reach out today!

Connect Wealth | 13-2970 King George Blvd. | South Surrey, BC V4P 0E6, Canada
Phone: 604.542.4298 | Toll Free: 877.542.4298 | Fax: 604.542.4289

© Copyright 2020 Connect Wealth. All rights reserved. Privacy Policy

Are Behavioural Biases Impacting your Financial Decision Making?To Be a Donor, or Not