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.