Chris Worby is a Trusted Regina based financial advisor and Wealth Management services provider. With over 20 years of experience, Worby Wealth Management has been committed to providing a high standard of financial service to individuals, families and business owners in Regina and area. Worby Wealth Management listens and provides a personalized financial plan. In their latest Worby Wealth Management Trusted Regina Financial Tip, they share details about Registered Retirement Saving Plan (RRSPs).
Registered Retirement Saving Plans (RRSPs)
By Chris Worby - May 2023
A Registered
Retirement Savings Plan (RRSP) is an investment that is registered with the Canada Revenue Agency (CRA) which allows for the deferring of taxes owed on the money contributed and any investment income
earned until future years when the funds are withdrawn.
RRSP Contributions
The money you
contribute to an RRSP now allows you to reduce the income you pay tax on for
the previous taxation year. 2 months into the next calendar year is the usual
deadline to invest into RRSPs for the previous taxation year. That means January and February is the
perfect time to invest in an RRSP for the previous tax year.
“Wait, did you mean now as in now, or as in now…
eh I’ll get to it soon now?”
That old adage is
never more relevant –
" The best time to invest was 50 years ago… the
second best time to invest is right now! "
The 2022 limit is
$29,210 or 18% of your earned income reported on your 2021 tax return (whichever
is less), minus any employer-sponsored pension plan contribution, plus any
unused contribution room from previous years.
Check your most recent CRA Notice of Assessment (NOA) to determine
your limit.
Age Limits
No minimum contribution age exists, but you must
have earned income reported to CRA. At
Worby Wealth Management, we’ll never promote child labour; regardless, my
children seem to think spending time on Roblox counts as performing a household
chore.
The sooner you start contributing to your RRSP, the
better to take advantage of the power of compounding. Contributions can be
made until you turn 71, when they must be converted to an RRIF, or you must purchase an Annuity.
Investment Choices
Various
investments can be held in an RRSP, including cash, GICs, bonds, mutual funds,
ETFs and individual stocks. However,
before choosing your investment approach, it’s always best to consider Retirement, Tax,
and possibly even Estate issues.
Questions regarding RRSPs?
If you have
questions about account or investment options, contact Worby Wealth Management to get your
questions answered and start investing in an RRSP or other investment accounts
today.
Some of the services that Worby Wealth Management can help you with:
TRUSTED REGINA FINANCIAL ADVISOR Chris Worby from Worby Wealth Management helps you live your dream!
The
comments herein are a general discussion of certain issues intended
as general information only and should not be relied upon as tax or legal
advice. Please obtain independent professional advice in the context of your
particular circumstances. This Blog was
written, designed and produced by Chris Worby for the
benefit of Chris Worby, a Financial Advisor at Worby
Wealth Management, a registered trade name with Investia Financial Services
Inc., and does not necessarily reflect the opinion of Investia Financial
Services Inc. The information contained
in this article comes from sources we believe are reliable, but we cannot guarantee
its accuracy or reliability. The
opinions expressed are based on an analysis and interpretation dating from the publication date and are subject to change without notice. Furthermore, they do not constitute an offer
or solicitation to buy or sell securities.
Mutual Funds approved exempt market products and/or exchange-traded
funds are offered through Investia Financial Services Inc.
Chris Worby is a Trusted Regina based financial advisor and Wealth Management services provider. With over 20 years of experience, Worby Wealth Management has been committed to providing a high standard of financial service to individuals, families and business owners in Regina and area. Worby Wealth Management listens and provides a personalized financial plan. In their latest Worby Wealth Management Trusted Regina Financial Tip, they discuss bonds.
The Wealth Building Toolkit: Bonds
By Jeremiah Worby - March 2023
Bonds are a type of
investment that can be used for both short-term and long-term goals. They're
considered safer than stocks, but also have less potential for growth over
time. In this article, we'll explain what bonds are and how they work as part
of your investment portfolio.
What is a Bond?
OK, maybe not James Bond, but rather we’re going to talk about financial bonds.
Investopedia.com
defines a bond as a fixed-income instrument that represents a loan made by an
investor to a borrower (typically corporate or governmental).
Bonds tend to move
opposite from share prices, which means investors often turn to bonds when they
want to reduce their portfolio risk – unfortunately this wasn’t the case in
2022. Investing in bonds can be a good
thing for diversification as it offers an alternative investment class for
those who want a more conservative option in their portfolios.
If you’re looking for
a way to diversify your portfolio, bonds are an effective tool.
What is a Bond Yield?
The yield, also known
as the coupon rate, is the annual percentage of money provided to investors for
making the loan. In other words, it's
how much interest you'll get from your bond.
When a bond is originally purchased, there is an
interest rate on it - for our example, let's say 5%. But because bonds can be
bought and sold afterwards, sometimes the yield can vary because the price
varies. It is a bit like a rental property, if you purchased a house for
$300,000 and rent it for $15,000/yr, that's a 5% yield. But if the value of the
house goes up to $400,000 but you're still only getting a $15,000 rent, then
it's a 3.75% yield.
The yield on bonds is
generally in response to changes in the Bank of Canada’s target for the
overnight rate. The Bank of Canada has a
target for the overnight rate, which is the rate that banks charge each other
for overnight loans. This rate can be
increased or decreased by the bank and this change affects all other market
interest rates. When bond yields go up
and down, it usually means that interest rates are going up or down as well.
Conclusion
If you’re considering
buying bonds, you might want to look at what’s happening in the market before
making a purchase. This will allow you
time to do research and make a decision based on facts rather than emotions.
Remember that there is
no one right answer when it comes to investing so it’s important to do the
research and talk with experts before making any decision about what will work
best for you and your financial situation.
Questions regarding
bonds?
If you have
questions about bonds or other types of investments, then contact Worby Wealth Management to get your
questions answered and start investing today.
Some of the services that Worby Wealth Management can help you with:
TRUSTED REGINA FINANCIAL ADVISORs Chris & Jeremiah Worby from Worby Wealth Management help you live your dream!
The
comments contained herein are a general discussion of certain issues intended
as general information only and should not be relied upon as tax or legal
advice. Please obtain independent professional advice, in the context of your
particular circumstances. This Blog was
written, designed and produced by Jeremiah Worby and Chris Worby for the
benefit of Jeremiah Worby and Chris Worby who are Financial Advisors at Worby
Wealth Management, a registered trade name with Investia Financial Services
Inc., and does not necessarily reflect the opinion of Investia Financial
Services Inc. The information contained
in this article comes from sources we believe reliable, but we cannot guarantee
its accuracy or reliability. The
opinions expressed are based on an analysis and interpretation dating from the
date of publication and are subject to change without notice. Furthermore, they do not constitute an offer
or solicitation to buy or sell any securities.
Mutual Funds, approved exempt market products and/or exchange traded
funds are offered through Investia Financial Services Inc.
Chris Worby and Jeremiah Worby are Trusted Regina based financial advisors and Wealth Management services providers. With over 20 years of experience, Worby Wealth Management has been committed to providing a high standard of financial service to individuals, families and business owners in Regina and area. Worby Wealth Management listens and provides a personalized financial plan. In their latest Worby Wealth Management Trusted Regina Financial Tip, Jeremiah shares their year end financial checklist.
Year End Financial Checklist
by Jeremiah Worby
It's near the end
of another year. You've probably been
busy planning parties, planning pranks, and soon to be attending holiday events,
but there's one thing that needs your attention – your personal finances. It's time to start reviewing how much money
you have saved up for retirement and other important costs in life.
HERE'S HOW
Do you have any RRSP room left for 2022?
If your RRSP
room is $10,000 and you have already contributed $6,000 to an RRSP this year,
then that means you have only… hold on give me a minute here – carry the 9… oh
yeah, $4,000 of available room for 2022.
If you don't have any remaining RRSP room
for 2022, then no other RRSP contributions can be made before year-end. That being said, if there are other
registered plans (e.g., a TFSA) that you haven't maxed out yet for this year,
then it may still be worthwhile contributing what is needed to fill up your
existing registered plans so long as doing so doesn't exceed their respective
contribution limits.
Are your TFSA contributions up to date?
TFSAs are a great way to save for
retirement. Straight from the Canadian government’s website,
“The TFSA program began in 2009. It is a way for
individuals who are 18 years of age or older and who have a valid social
insurance number (SIN) to set money aside tax-free throughout their lifetime. Contributions to a TFSA are not
deductible for income tax purposes. "
Unused contribution room from previous
years carries forward to future years. A
quick check with your MyCRA account (or office Dwight – he seems to know
everything) should let you know exactly how much TFSA room you currently have.
Have you funded your children's
RESPs this year?
Whether you have two children or twelve,
saving up for their education is a top priority for lots of families. The biggest benefit of RESPs is that a grant
from the Canadian government of up to $7,200 can be earned over the life of the
plan.
The money in an RESP can be used for
various education costs, not just for tuition.
There is no tax on the investment earnings as long as it remains in the
plan. Contributions are not tax
deductible, however withdrawals called educational assistance payments are
included in the student’s income.
Do you have enough life insurance
coverage in case something happens to you?
Life insurance
is an important part of financial planning.
The question is, do you have enough?
Pro tip: $100 Million is probably more than what you need.
You should
consider getting life insurance coverage to protect your family from being left
with financial burdens if something happens to you.
It's important to know how much coverage
you need and what kind of coverage makes sense for your situation. You can get a free life insurance quote by contacting Worby Wealth Management.
A
review of personal finances at the end of the year makes sense
It’s a good idea
to review your personal finances at the end of the year. This way, you can
ensure that you are on track with your goals and make adjustments as needed.
You should review:
- Your financial situation – How much debt do you have? How much money do you have in savings? What are your investments doing? If there is anything that needs to be changed
or improved, now is the time for it!
- Your financial goals – What are some things that need
improving? Are there any new goals that
could be set for next year?
- Investments – Is your portfolio set up for long-term
growth or short-term gain? Are your investment goals aligned with your time
horizon and risk tolerance (e.g., saving for retirement vs. building
wealth). Have any recent market events
caused you to rethink this part of your financial plan? If yes, make sure to contact Worby Wealth Management for a free second
opinion.
- Insurance coverage – Does your current insurance cover all
important aspects of your life (e.g., health care, disability income, burial
expenses) while still being affordable? What
other types of coverage might make sense moving forward as life circumstances
change (e.g., term insurance for those years while you’re still carrying a
mortgage).
Conclusion
The end of the year is a good time to
review your finances and make sure you're on track for the new year. It's also a great opportunity to look back at
the financial decisions you've made over the past 12 months and see if there
might be room for improvement. If so,
now is the perfect time to make those changes!
Questions regarding your year end financial checklist?
If you have
questions about your year end financial checklist, then contact Worby Wealth Management to get your
questions answered and start investing in an RRSP, TFSA or other investment
accounts today.
Some of the services that Worby Wealth Management can help you with:
TRUSTED REGINA FINANCIAL ADVISORs Chris & Jeremiah Worby from Worby Wealth Management help you live your dream!
The
comments contained herein are a general discussion of certain issues intended
as general information only and should not be relied upon as tax or legal
advice. Please obtain independent professional advice, in the context of your
particular circumstances. This Blog was
written, designed and produced by Jeremiah Worby and Chris Worby for the
benefit of Jeremiah Worby and Chris Worby who are Financial Advisors at Worby
Wealth Management, a registered trade name with Investia Financial Services
Inc., and does not necessarily reflect the opinion of Investia Financial
Services Inc. The information contained
in this article comes from sources we believe reliable, but we cannot guarantee
its accuracy or reliability. The
opinions expressed are based on an analysis and interpretation dating from the
date of publication and are subject to change without notice. Furthermore, they do not constitute an offer
or solicitation to buy or sell any securities.
Mutual Funds, approved exempt market products and/or exchange traded
funds are offered through Investia Financial Services Inc.