Welcome to 2013

Welcome to 2013


I hope everyone had a great holiday and extend my blessings to all for the coming New Year.

So how are those resolutions coming?  Like many I am determined to spend less, save more, eat less, exercise more and be grateful for all that I do have.

For some it may be a debt situation they are trying to resolve.  Debts like diets require baby steps and changes to established patterns of living.  One of the best books I have read on the subject was Spent by advisor Stephanie Winton-Holmes. The book is designed to help you understand how your personality affects your current financial situation.  Stephanie breaks down our different personality traits and provides advice geared to specific traits and shows you how to use your natural strengths to increase your cash flow and reduce debt.


Some important dates for 2013

RRSP deadline this year is March 1, 2013

Again contributions are 18% of earned income from the previous year to a maximum of $23,820.

(This max will increase next year, for more information please sees the CRA website)

TFSA contributions have no absolute contribution deadline and are yearly

Contribution limits for 2013 have increased to $5,500.   Great news for the majority of Canadians


The age old question persists   which is better RRSP or TFSA??

The answer I am afraid is different for everyone!

For most of us the TFSA can provide the most benefit and flexibility but really the best strategy is to use both !! Contribute to your RRSP and instead of spending the refund   invest it in a TFSA. Use different products or asset allocations and reduce your risk while increasing the diversity of your savings .

Here are some important considerations to think about when deciding what to do

What is the current /future  income state ?  high to modest  suggests using  RRSP

How much is currently saved for retirement ? and in what form RRSP  or pension  low to high  a TFSA may be better

What do you do with tax refunds?  80%  of us spend it !!  Most RRSP income projections are based on the reinvestment of this refund    why not spend it on yourself  and put it in a TFSA.



Please note this is for informational purposes only, Heather Lang/CedarlaneFinancial Consulting/FundEX Investments Inc.  and are not responsible for any actions  beyond this information piece .

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