Once again, I wanted to wish you a happy 2021. This past year, will certainly go down in the history books. Dealing with a pandemic affects us all and every part of our life. I hope everyone is managing well through this very tough time. If there is anything we can do to help, please don’t hesitate to give us a call. As I have said before, we will get through this and move on to better times. As the old saying goes: “It is always sunny above the clouds.”

TFSA and RRSP Limits

To start the year off strong, I want to remind folks to make your annual TFSA contribution sooner rather than later as time is money. This year’s contribution amount is $6,000, bringing the cumulative TFSA contributions since 2009 to $75,500.

It seems like only yesterday that the first TFSA contribution allowed was $5,000 in 2009. I won’t go into detail here however, I would like to reiterate that the TFSA is one of the best accounts ever created in Canada. I have previously written a couple of blog posts on how useful and large the TFSA accounts will become if you continue to contribute each year. If you would like a refresher or haven’t had a chance to read them, please check them out: TFSA Part 1 and TFSA Part 2.

This year’s RRSP annual deduction limit is 18% of the prior year's earned income to a maximum of $27,230 for 2020 and $27,830 for 2021. The deadline for the 2020 tax year is March 1st, 2021.

Under the ‘Quick Facts’ tab, you will find the 2021 Handy Financial Planning Facts which you may find useful. This PDF is a quick guide for important financial information such as contribution limits, CPP & OAS amounts, tax rates, and more.

Please don’t hesitate to give us a call if you have any questions. If you have any family and friends who would benefit from our services, please do not hesitate to give them our contact information.

 

"How will you replace your current income in retirement?" - Jim Seyers