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How much should I contribute to my RRSP?
Your maximum allowable contribution for the current year is the lower of 18% of your income from the previous year or the maximum annual contribution limit for the taxation year ($19,000 in 2007; $20,000 in 2008; $21,000 in 2009; $22,000 in 2010). However, I can set you up on what we call Monthly Dollar Cost Averaging for as little as $50.00 per month. As a general rule of thumb, most investors should be contributing 10% of their income to future retirement plans.
Should I pay down my mortgage or contribute to my RRSP?
Both. Yes, you want to reduce your debt load and get rid of your mortgage payment as soon as possible. However, you also want to take full advantage of the power compound investment returns. Even a small contribution will compound over the longterm.
How do you calculate capital gain if I sell a rental property?
Sale price of your property less your adjusted cost base (your original purchase price) is your Capital Gain. 50% of this gain is your taxable Capital Gain. The taxable Capital Gain is added to your income and you pay tax on this gain at your marginal tax rate (tax bracket).
Do I need a will?
Yes you do. However, I don't provide legal advice for products.
What is a Tax Free Savings Account?
The Tax Free Savings Account (TFSA) is a flexible account that allows Canadians to watch their investments, including interest income, dividend payments and capital gains, grow tax-free. Read More >
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