Inflation and taxes are two of the biggest financial challenges facing retirees, but there is a silver lining: many tax rules and major retirement benefits in Canada are indexed to inflation. Federal income tax brackets, contribution limits for registered accounts and programs such as the Canada Pension Plan (CPP), Old Age Security (OAS) and the … Read more

AskMoneySense I hold EPD stock in my RRSP for the dividend income (around 7%). To my surprise, I was charged roughly 30% tax on those dividends even though they’re in an RRSP. EPD is registered in Louisiana. —Wanda How much is withholding tax on U.S. dividends? Wanda, here’s a concise explanation of U.S. withholding tax … Read more

Ask MoneySense I had a locked-in pension, which I converted to a life income fund (LIF). I also took advantage of the ability to unlock up to 50% of the LIF within 60 days and put $120,000 into an RRSP. I did not receive any funds—so I was shocked when I received a T4RIF for … Read more

Ask MoneySense I sold my company last year for $160,000. I originally bought it in 1997 for $90,000. Can you explain the tax consequences? I’ve called the CRA several times but haven’t received a clear answer. —Peter The types of taxes you may owe when selling a small business Sorry you’ve had trouble getting a … Read more

Ask MoneySense Is it possible to handle investments without having an accountant or tax professional? I do my own income taxes and have used the tax receipts without any issues from my bank for mutual funds. Is it possible to invest in ETFs without hiring a professional at tax time? If they are in a … Read more

Every year I add “save for retirement” to my list of New Year’s resolutions. I’ve taken part in employer pension plans and contributed to my registered retirement savings plan (RRSP) when possible, but balancing retirement saving with paying down debt and covering monthly living costs can be tough. It turns out I’m not alone: many … Read more

This has been a standout year for bitcoin (BTC), the original cryptocurrency and still the largest by market capitalization. After hitting multi-year lows in 2022, bitcoin staged a powerful comeback across 2023, drawing renewed investor attention and sparking lively debate about where the digital currency could head next. How high is bitcoin’s price? Bitcoin faced … Read more

When planning an estate or administering one in Ontario, a key financial consideration is the Estate Administration Tax, commonly called probate fees. This mandatory provincial charge can significantly reduce the value of an estate, surprising executors and leaving less for beneficiaries. Fortunately, understanding how the tax is calculated and the legitimate strategies available to minimize … Read more

As an investor in Canada, you have likely considered—or already hold—exchange-traded funds (ETFs). ETFs pool many securities into a single tradable share, giving investors immediate diversification without the need to buy each individual stock or bond. Traded on stock exchanges, ETFs are accessible through online brokerages and financial advisors, and they can be held in … Read more

Ask MoneySense My husband is about to turn 60 and we have to decide whether to keep our life insurance plan or let it lapse. We no longer have a mortgage, and we are arranging our own funerals so our children won’t have to worry about those costs. I’ve been retired for over a year … Read more