Category Archives: Finances

Canadian Marginal Tax Rates – 2018

This post provides the 2018 combined marginal and average tax rates as tables, charts and a downloadable spreadsheet for the Canadian federal government and all the provinces and territories. It now includes some of the hidden taxes that are not shown on the income tax forms rate tables. More

Canadian Marginal Tax Rates – 2017

Canadian Marginal Tax Rates - 2017 OntarioThis post provides the 2017 combined marginal and average tax rates as tables, charts and a downloadable spreadsheet for the Canadian federal government and all the provinces and territories. It now includes some of the hidden taxes that are not shown on the income tax forms rate tables. More

Reinvesting Dividends – Minimize Cash

Most companies that provide dividends when you purchase their shares also offer an option to reinvest the dividend without incurring a fee. This option is a good way to compound the return. However, the reinvested dividend usually only buys whole shares and not a fraction of a share. The means that some of the dividend is returned as cash. To gain as much of the compounding as possible, selecting the number of shares to hold becomes very important. A guide to doing this is provided as well as a spreadsheet to help in assessing the impact. More

Loan and Mortgage Calculator

Loan and Mortgage Calculator Chart 3Almost everyone has to borrow money sometime. For example, if you are buying or already own a house or rental property, you will have to take out a mortgage and pay it down or if you buy a car on credit, you will have to pay some amount each month. Whenever you have to pay back a loan, you can use the spreadsheet provided to determine the payment amount, the interest you are paying each payment and how the loan amount decreases over time. You can also use it to evaluate different alternatives. You may be surprised how much is interest early in the loan. More

Claiming the RRIF Re-Contribution on your 2015 Tax Return

If you received a 2015 T4RIF form with an amount using the old minimum withdrawal rate and you have re-contributed the difference between it and the new rate, how do you make sure that you only pay taxes on the new withdrawal rate? More

Canadian Marginal Tax Rates – 2016

Canadian Marginal Tax Rates - 2016 OntarioThis post provides the 2016 combined marginal and average tax rates as tables, charts and a downloadable spreadsheet for the Canadian federal government and all the provinces and territories. The Marginal Tax Rate is mentioned a lot when discussing incremental and retirement income. It is defined as the amount of tax paid on an additional dollar of income. It is sometimes difficult to determine this value as it changes by province and using a standard rate without regard to your province of residence can lead to erroneous results if you are not careful. More

Estimating Capital Totals at Retirement

Estimating Capital Totals at RetirementChart4If you have been putting money into an RRSP, TFSA or other investments over the years, have you ever projected how much you will have when you retire? If you are just starting, what will you have if you save some money each year? This is important because it will determine what is available for a yearly income when you retire. The spreadsheet provided lets you try out different options. The results may surprise you as even a small amount of savings each year combined with compounding can really add up. More

Survey Shows Canadians Are Not Prepared For Retirement

Survey Shows Canadians Are Not Prepared For Retirement1The 2015 Canadian Payroll Association once again shows that about three-quarters of Canadians are far behind their retirement goals, are not saving towards retirement and expect to need a lot of savings. The survey had a lot of exposure on September 9, 2015. However, most of it just summarizes the press releases. If you want more details, read on. More

StatsCan – How Much Do Individual Canadians Make?

How Much Do Canadians Acutal MakeThere have been a number of surveys that deal with how much Canadians are saving and the debt that they have accumulated. However, they never seem to categorize the answers by the income of the person. Statistics Canada has access to data that provides the answer of how much income Canadians actual make. More

Making a Yearly Budget

Keeping track of how you spend your money is important. It helps you save for things that you want and for retirement. There are many ways to do it, including spreadsheets and applications, but if you do it by only watching your bank account, you will not be very successful. This post provides an easy-to-use spreadsheet where you can make your yearly budget plan. More

Impact of Tax Credits on Average Tax Rate

Impact of Tax Credits on Average Tax RateEach additional dollar you earn is taxed at the marginal tax rate. However, the tax credits to which everyone is entitled significantly reduces the amount of taxes you actually pay compared to the tax bracket values and the marginal tax rates. For example, for income close to the top of the first tax bracket and the basic personal tax credit, the actual average rate is just 72% of the marginal tax rate. More

Estimating Canadian Income Taxes

If you need to estimate your Canadian income taxes during the year before making an investment decision, use the simplified spreadsheet provided in this post. For example, you may have to decide the impact of taking capital gains this year, selling stocks or taking out an RRSP. More

Managing Expenses and Cash Flow – Part 1: Why

Managing Expenses and Cash Flow 01 CumWhy should you have to record every purchase you have made to keep track of your expenses? Let someone else do it for you: buy everything using plastic or mobile payments (tap and pay). You will then be provided with a summary of the payments by date, vendor and amount that you can access online. Using the Cash Flow method presented here and the spreadsheet included in Part 2, you can simplify the tracking of your expenses with a few minutes of work each month. You can also plan your income and expenses by month, prioritize your expenses, show your cash flow to ensure you have enough money when big bills are due and compare the actuals to the plan. More

Managing Expenses and Cash Flow – Part 2: Spreadsheet

Managing Expenses and Cash Flow 10 ActualChartBy using the Cash Flow method and the spreadsheet included here, you can simplify the tracking of your expenses with a few minutes of work each month. You can also plan your income and expenses by month, prioritize your expenses, show your cash flow to ensure you have enough money when big bills are due and compare the actuals to the plan. While it is recommended that you buy everything using plastic or mobile payments as indicated in Part 1, you can also enter any Transactions that you want. More

Managing Expenses and Cash Flow – Part 3: FinanceBase

Managing Expenses FinanceBase Plan GraphThe spreadsheet discussed in Part 2 is very flexible and provides very good insight into how your actual cash flow compares to the plan on the many tables and charts provided. However, there is more that can be done to help you, especially if you have an at-home business or want to keep a long-term record of your income and expenses. If you want a more robust and full-featured application as an alternative to the spreadsheet, FinanceBase is a very good option and is discussed in this part. More

Determining the Elected Split-Pension Amount

The Elected Split-Pension Amount for retired spouses results in a lower combined Canadian income tax if income can be moved from one spouse’s higher tax bracket to the other spouse’s lower tax bracket. Depending on the incomes, this can be a little hard to determine. This post describes how to determine the best splitting for you and your spouse, provides a spreadsheet to help in the analysis and determines the savings. Be careful when using any optimized amount provided by some of the tax preparation software or the maximum amount permitted as it may not be what you want relative to how much each person pays or receives. More

Using Yearly Rates to Compare Stocks Prices and Dividends

Using Yearly Rates to Compare Stock Prices and Dividends ChartWhile past performance is not a predictor of future returns, companies that have consistently meet their long-term yearly growth rate for stock price and dividends deserve close scrutiny. However, it is not always obvious which company’s combined yearly stock growth rate plus yearly dividend growth rate is better than that of another company. An Excel spreadsheet can be downloaded that takes the yearly stock price and dividends rates and projects the stock prices and dividends 5 years into the future, determines a final value using taxes and  charts them so you can easily compare companies. More

Determining Yearly Rates for Stock Prices and Dividends

There is a lot of information available to help you evaluate a stock you might be considering. The long-term yearly rate by which the stock price and dividends has increased (or decreased) is an important statistic that is not easy to find, without paying for the analysis. An Excel spreadsheet can be downloaded that you can use to generate this information. The resulting yearly rate for both the stock and dividends can be used in FinanceBase-Lifetime Finances to help project the long-term cash flow. More

Canadian Marginal Tax Rates – 2014

This post provides the 2014 combined tax rates as tables and charts for the Canadian federal government and all the provinces and territories. The Marginal Tax Rate is mentioned a lot when discussing retirement income. It is defined as the amount of tax paid on an additional dollar of income. It is sometimes difficult to determine this value as it changes by province. This post shows the marginal and average rates for each tax bracket and provides a downloadable spreadsheet which also contains the charts for each province. More