| In this Issue: |
|
|
A
Message From Terry |
 |
Main
Article |
|
Financial
Planning TIP |
|
About
Us |
|
This newsletter is courtesy of Terry Fay and RetirementByDesign.ca. Please remember that while strategies outlined within this newsletter may be appropriate for some investors, you should always consult a financial advisor to determine if they are appropriate for you.
Sincerely,
Terry
Hello:
Your RRSP checklist:
Deadline: March 1, 2006 is the last day to make a contribution that you can claim for 2005 tax returns.
Foreign Content:
The 2005 federal budget abolished the foreign content limit. You can hold as much of your RRSP in foreign assets as is appropriate given your risk tolerance and investment objectives.
Contribution Limit:
You may contribute up to 18% of the income you earned in 2004 to a maximum of $16,500, less any pension adjustment plus unused room from the past year.
Consider RRSP Loans:
You will
get a tax deduction for your contribution and in most cases, the long
term benefit of tax deferred compound growth will outweigh the short term
interest cost. We offer loans through several financial institutions at
competitive interest rates. Call to set a time to meet and review your
RRSP needs.
Are You Paying Too Much For Your Mortgage Insurance?
You may have taken out the insurance that your bank or credit union offered you when you applied for a mortgage. If you did, that was good thinking. What you owe on your home is probably the single biggest debt you'll ever incur, so it makes sense to have it fully insured.
But, like many other people, you may not have known that you can obtain better coverage at lower rates by buying your own individual insurance policy!
Better Mortgage Insurance Coverage at Lower Rates
Click here for better mortgage insurance coverage and better rates.
Five Easy Steps to Increase Your RRSP Contribution for 2005.
Step
1
Make a contribution. Example write a cheque and invest in your RRSP,
$9,900
Step
2
Gross up your investment with a loan by the same rate as your tax bracket.
Example your tax bracket is 40%. You then borrow $6,600. ($9,900 divided
by (1-40%))
Step
3
File your tax return with your RRSP contribution of $16,500.
Step
4
Wait for your refund or tax savings of $6,600. Example $16,500 multiplied
by your tax bracket of 40% equals $6,600
Step
5
Pay off loan with tax savings.
Instead of only having $9,900 contributed to your RRSP you now have $16,500. The only cost for doing this is interest while waiting for your refund.
Call me to see how this concept will fit your specific need.
Your tax bracket may vary from the example used.
All you really need to know is that we are committed to helping our clients achieve financial security and peace of mind.
Our Mission: Enhancing peoples lives by creating a positive life vision and the money to support it through our unique approach to financial planning.
 |
 |
Insurance products provided through Dundee Insurance Agency Ltd.
Mutual Fund Products Offered Through Dundee Securities Corporation.
Click here to subscribe/unsubscribe.
AOL subscribers, please add us to your 'whitelist'. Thanks.