What is a Registered Disability Savings Plan?

April 23, 2018/2 Comments/in Articles, Insurance, News, Street Smarts with Taayla, Videos /by Taayla

What is a Registered Disability Savings Plan?

Do you have a disability and have you heard of the Registered Disability Savings Plan?

Many people haven’t! In my latest Street Smarts video, I’m happy to share another option for people with disabilities. It’s a great way to add to your retirement and ensure you have more money for your future.

Maybe your financial advisor has told you about it. Maybe you’ve heard about it from your bank. Maybe your friends have talked about it.

But how much do you really know about RDSPs? I’m here to help explain more about this important savings plan!

Registered Disability Savings Plans is a program provided by the Canadian government

The government wants to provide more options for people with disabilities to have a more financially secure future.

This money is given through grants and/or bonds after an initial investment. There are a variety of options for that initial investment. There is a certain amount you can contribute and the government has a schedule for matching.

How much money can I get from an RDSP?

You could receive hundreds or thousands of dollars from these government bonds and grants.

For example, one of my clients named Mike initially invested $500. Within three months, he was already given $9,700 in grants and bonds.

Another example in an eight year old girl. Her parents started an RDSP for her with an initial $200. She received $6,000 in grants and bonds!

Nancy is another great example. She started with $2,500 AND ended up with $12,000 in grands and bonds.

EVERYONE IS UNIQUE IN HOW THEY WOULD QUALIFY.

What determines how much you receive from an RDSP?

RDSP amounts are based on specific qualifications. Each individual can receive a different amount depending on things like income and LENGTH OF DISABILITY.

What you receive initially may change year-to-year, depending on your income.

Your grant will be matched by your initial contribution. Your bond is qualified by a low income tax return.

How long does my money have to stay in an RDSP?

Another important detail is how long your money must stay in the plan. The money has to stay IN THE PLAN for a minimum of 10 years from the last contribution.

How do I qualify for an RDSP?

In order to qualify for a Registered Disability Savings Plan, you need a disability tax credit for when you file your tax return. This will be your first step in starting the process for an RDSP.

What if you don’t have a disability tax credit? Not a problem. Click here to find out more about disability tax credits and how to get one.

Talk to a financial advisor to find out more details about RDSPs.

What’s the best age to start an RDSP?

Anytime! But if you’re under 50 years old and have a disability tax credit, having an RDSP is a great option to save for your retirement. Even if someone is under 18, getting the guardians to start an RDSP is a very smart financial decision.

Scroll to the bottom and let us know in the comments below if you want to know more about mortgage insurance or if you have any feedback on our new show.

Get in touch with us!

Let’s get in touch! We’d love to answer all your questions. Contact Taayla today to learn more about RDSP. Subscribe to our YouTube channel! We post new video content once a month, so don’t miss an episode and get my financial tips and tricks sent straight to your inbox.

Let’s Talk Mortgage Insurance

April 4, 2018/2 Comments/in Insurance, News, Street Smarts with Taayla, Videos /by Taayla

Today I want to talk about the importance of mortgage insurance and why you should be discussing it with your financial advisor. Even if you don’t yet have a mortgage, it’s important to know for when you do start looking, or to inform your loved ones of what can happen if your mortgage isn’t insured.

What is mortgage insurance?

Mortgage insurance is the bank’s version of life and disability insurance. If a person becomes sick, injured, or passes away, the insurance will pay the mortgage to the lender on behalf of the individual.

Why is it important to have?

If you pass away, do you want your insurance to pay loved ones or have that money taken away to pay off lenders? Mortgage insurance ensures that mortgages are paid so that loved ones can still receive those financial benefits.

It’s also important because the insurance isn’t portable. This means that if you decide to renew your mortgage with another lender, you now have to prequalify for your insurance with that new lender. If your health has declined since then, that could be a huge problem.

In most cases, you’re actually paying a higher premium with less benefits. I highly suggest watching “In Denial” from CBC Marketplace. The story goes into detail about mortgage insurance and some important things to look out for. If you have a mortgage or are looking to get one, it’s a must-watch.

Bottom line: talk to your financial advisor about mortgage insurance. Make sure you’re doing a needs analysis to make sure you’re seeing the big picture. Be informed and stay educated when it comes to mortgage insurance. It can make a difference between having nothing and having everything – make sure you’re covered when it comes to paying out lenders.

Scroll to the bottom and let us know in the comments below if you want to know more about mortgage insurance or if you have any feedback on our new show.

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Subscribe to our YouTube channel! We will be posting new video content once a month, so don’t miss an episode and get my financial tips and tricks sent straight to your inbox.

long term care insurance long term care coverage

When to Buy Long Term Care Insurance

March 5, 2018/0 Comments/in Insurance, News, Street Smarts with Taayla, Videos /by Taayla

This week, I’d like to share a story about my family. My grandma lived a healthy life: she exercised, ate well, and had a great attitude. We like to joke that she walked faster than all seven of her grandchildren!

In her 80s, however, she started showing signs of dementia. She was able to stay in her own house for four years. However, eventually she needed more care than staying at home could provide. Because of the 24/7 care she needed, she moved into a long term care facility. During the two years there, we had to hire a nurse to give her the care she needed.

Our family struggled with the cost of that care. Although my grandma was financially stable at the beginning of her illness, her assets and savings were quickly used up.

What is long term care insurance?

As a financial planner, I knew long term care insurance would be the best option. It provides a monthly income to ensure that you or your loved ones are taken care of during times of need.

When should you get long term care insurance?

The best time to get long term care insurance is when you’re young and healthy. If you’re in your 50s or 60s, you should get it right away. The longer you wait, the harder it is to get coverage. Premiums skyrocket.

A very important note to keep in mind: Most Long Term Care Insurance providers are taking their stand-alone policy off the market by end of June, 2018. Talk with Taayla NOW, or get in touch with your advisor, to get the best long term care protection in place.

It is easy to go through your savings during illness or retirement. If that’s a concern, ask us about long term care.

Get in touch with us!

Please subscribe to our YouTube channel! You’ll get every new episode straight to your inbox.

Then let us know in the comments below if you learned something new about long term care insurance or if you have any questions that you’d like me to answer.

Best ways to grow your money with a TFSA

How can you grow your money with a TFSA?

February 9, 2018/0 Comments/in News, Street Smarts with Taayla, Videos, Wealth Accumulation /by Taayla

You probably already know that a TFSA, or Tax Free Savings Account, can save you money. But do you know how they work, and what types of funds you can put into a TFSA? Learning how to contribute to your TFSA in order to reap the full benefits is essential for anyone in Canada over the age of 18.

How does a TFSA work?

Your TFSA is important option to shelter the growth of your investments from taxes, so you can grow your money tax-free. But it isn’t like a traditional savings account you would get at a bank. The TFSA works best for your with growth, and they should be used to house your investments with the highest growth or returns.

Since the growth of most of your investments, like a mutual fund are usually taxed as income, you could be taxed as much as 40% on the growth of your investments without a TFSA. Putting those investments in your TFSA will keep those investments tax-free, saving you a lot of money in the long run. This is especially important on large investments.

What can you put in a TFSA account?

The TFSA is a very flexible account. It can hold cash, GIC, mutual funds, bonds and much more. Ideally, you want to put your investments with the highest potential growth into your TFSA in order to save the most tax.

What are the downsides to putting money in a TFSA?

The CRA limits your contribution amounts, so if you put more than the limit into your account you will be severely penalized.

What is your personal TFSA limit?

If you want help calculating how much to put into your TFSA, ask me in the comments! Or get in touch to have your particular situation reviewed by a Certified Financial Planner.

You can also find out more about your personal tax accounts at www.cra.gc.ca/myaccount.

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What are the benefits of having an RRSP

January 15, 2018/0 Comments/in News, Retirement Planning, Street Smarts with Taayla, Videos /by Taayla

What are the benefits of contributing to a Registered Retirement Savings Plan (RRSP)?

A significant amount of money that you would otherwise send to the CRA in the form of taxes can be saved by contributing to an RRSP.

What is an Registered Retirement Savings Plan (RRSP)

A Registered Retirement Savings Plan, or RRSP, is a particular kind of investment account designed to help Canadians save for retirement. Within this account, it’s possible to hold a number of types of investments, like mutual funds, savings accounts, stocks, bonds, and a few others. Special tax benefits are applied to these investments.

What are the benefits of having an RRSP?

At the end of the tax year, the CRA will issue a refund cheque on your income tax overpayment based on the amount of your income you contribute to your RRSP investments.

When you are retired and no longer making a full income, you can take out the money from your RRSP at a lower tax rate than when you were making a full income.

Buy your first home, or pay for your education by using your RRSP.

You can also withdraw money for certain things, like a down payment on your first home, or to pay education tuition. Some stipulations apply.

See your Certified Financial Planner to find out how to maximize your contributions, utilize the homebuying or education tuition program. Or get in touch to have your particular situation reviewed by a Certified Financial Planner.

Scroll all the way to the bottom and let us know in the comments below if you learned something new about RRSPs today, or if you have any feedback on our new show.

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SuperTax Credit

December 11, 2015/0 Comments/in Articles, Frontpage Article, News, Videos /by Taayla

For first-time donors, CRA proposes to introduce a temporary supplement to the existing non-refundable tax credit for charitable donations by individuals. The new credit can be claimed once from the 2013 to 2017 taxation years.

WinFlex Best Kept Secret

November 22, 2015/0 Comments/in Articles, Frontpage Article, News, Videos /by Taayla

Winflex reveals one of the best kept secrets of the Canadian Income Tax Act that will save business owners and self-employed people money.

Critical Illness Insurance

November 22, 2015/3 Comments/in Articles, News, Videos, Wealth Protection /by Taayla

Critical Illness Insurance pays a benefit to an individual in the event that they are diagnosed with a critical illness such as cancer, a heart attack, or a stroke.

Women Speakers Association WSA-TV Aug 27, 2015 Features Women Leaders

November 22, 2015/0 Comments/in Articles, News, Videos /by Taayla

This 15 minute episode features women leaders: Alysa Rushton, Marilyn Wilson, Taayla Mark & Niobe Weaver.