Weekend Reading – Debt clocks, tax tips and more
Welcome to a new Weekend Reading edition: about debt clocks, tax tips and more.
Before we get into some of my favourite finds from the personal finance and investing blogosphere this week, you can check out other popular recent reads below:
(For the most part, drawing down your RRSP first is better in semi-retirement or retirement. That means keeping your TFSA “until the end” as an investment account is usually tax-smart.)
In this recent case study below, I share the impact of 3.5% inflation sustained over the next 40 years and taking your CPP and OAS as early as possible in retirement. Not exactly wise for fighting longevity risk but you can retire at age 55 with higher inflation.
Weekend Reading – Debt clocks, tax tips and more
As you know, inflation continues to run wild.
A reminder not to count on our Bank of Canada to help you and I out in fighting inflation – it’s not going to happen!!
If you live in Quebec however, depending on how you look at this, you are getting some help soon…
“Quebec’s spring budget includes a one-time payment of $500 to every adult earning $100,000 or less to help offset the impact of inflation, and the cash is scheduled to arrive a few months ahead of the provincial election.”
You can check out more details in this media announcement here.
We’ll see what Ontario might do for their gimmicky election ploy as well. I call this government move a ploy since current inflation is largely stemmed from a supply issue: lack of supply; in pretty much everything. I’m not understanding how more money given out really fixes the products and services supply issue. If you can help explain that to me, that would be great. 😊
In reading that article, I checked out that province’s gross debt: which includes debt on financial markets and money owed for civil servants’ retirement plans. That debt was estimated at $215.3 billion, or 43.1 per cent of GDP.
That further triggered me to think about how much debt Ontario has, along with our federal government.
It’s staggering people…
My share of Ontario debt was about $30,000 or so some time ago – but that’s accelerating higher at a dizzying rate.
You can play with the debt clocks below for your awareness. Cool site.
Source: https://www.debtclock.ca/ @DebtClockCan
On the subject of huge debt and other general evils of personal finance when not used wisely, some reminders with tax season now here.
Reminder #1 – TurboTax Canada promo codes!
I know my TurboTax Canada Giveaway for 2022 is over, (congrats to all winners by the way once again!!) but I encourage you to read on for tips and tricks thanks to my partnership with TurboTax Canada this tax filing season.
You can still take advantage of my juicy 15% discount on TurboTax Canada tax preparation software until May 2, 2022 below.
Reminder #2 – Get some free AND low-cost help to fight the taxman!
Over at Cashflows & Portfolios, we wrote about some top tax tips for retirees based on our work with clients. A reminder you can hire me or my partner on that site for a low-cost retirement projection report.
Also, need a good tax book? We all do to navigate tax-season!
Thanks to my friend The Grumpy Accountant all My Own Advisor readers receive a massive discount with no expiration off his book. Just include the promo code “MOA” when you purchase the full PDF e-book from Neal’s site here:
In doing so, you’ll get a whopping 30% discount!
Other Weekend Reading…
Another Loonie shared some of his favourite dividend paying stocks.
I’m biased, I happen to own most of them!
Looking to help fight aforementioned inflation a bit? Look at investing in some REITs. The guys at Stocktrades.ca have some ideas on the best REITs to own right now.
Amazing work by Sam. His dividend portfolio is snowballing away!
Impressive stuff Sam:
“Our Dividend Snowball Portfolio was able to accumulate more Dividends in February for growing to a bigger Dividend Snowball. The $2,307.25 total income that we received in February were used to reinvest in dividend growing companies to generate more dividends.”
My friends at FIRE We Go! recently released their February dividend income update. They have asked if I should go on their YouTube channel soon. Should I do it??? 🙂
The MoneySense team with Dale Roberts just released the latest making sense of the markets post – always a fine read.
I’ve been a big fan of one Millionaire Teacher for many years now. Andrew Hallam suggested the following when it comes to bonds:
“Don’t abandon a diversified portfolio of stock and bond market indexes because of forecasts, current interest yields, or a price drop. Don’t abandon bonds for cash. You don’t know what bond prices or yields will be next year or five years from now. Nobody does. And with bond market indexes, you won’t be stuck with current prices or current yields.”
Finally, also from the dividend income file…
Read on how Anne Scheiber, who worked as an auditor for the IRS, retired at the age of 51 in 1944, and made a whopping $22 million investing in U.S. dividend stocks.
- Invest in companies with growing earnings
- Invest regularly
- Reinvest your dividends
- Invest in a tax efficient manner
- Be frugal where it makes sense
- Give back…
I’ve already made my donation (and will continue to do so….) to help millions displaced from Ukraine. If you have the means, I encourage any financial contribution to the Canadian Red Cross, Canada-Ukraine Foundation, Global Medic or another responsibile charitable organization of your choice that can help make an impact.
Take care, be safe.