Blog Posts

Understanding Stock Market Risk – My Road to Financial Independence Series

  Life has been a bit of a whirlwind recently. As I mentioned previously, our family had our 3rd child in November which coincidentally was the time of my last post! I failed to mention we also moved into a new house and then had plenty of family and friends visiting as well. We knew this was going to be our last child, so I have really tried to take as much quality time with our little boy as possible

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Understanding Corporate Investment Tax Part 2 – Refundable Dividend Tax On Hand (RDTOH) and Taxation of Dividends and Interest Income in a CCPC

This is the second post in the investment tax series – reading the first post here is essential to understand the next step of discussing the most complicated mechanism in the corporate investment tax structure, the RDTOH. The goal of this blog is to make investment concepts easier to understand by using basic explanations. The RDTOH is the toughest one yet to explain but I will try my best. I have found proper understanding of this post has taken a

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Understanding Corporate Investment Income Tax Part 1 –  Capital Gains and the Capital Dividend Account

  Apologies for the long hiatus. I felt hesitant to write any further advice since the corporate tax change proposals have created a climate of uncertainty. While the uncertainty will persist for a while longer, the last announcement found here talks specifically about corporate passive investment income with a threshold of $50,000/year before more onerous taxation kicks in. As I scrambled to review my corporate holdings to see if I currently exceed the threshold, I realized investment income tax treatment

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Incorporation Basics Part 3 – Income Smoothing and Proposed Tax Changes

I’ve given up trying to find pictures for such dry topics like incorporation so I figured I’d go with my science nerd side instead 🙂 Another key advantage of a personal corporation is the ability to control when you take personal income.  Deferring personal taxation via retained earnings in a CCPC typically works best when combined with investing these retained earnings to allow compound interest for many years and then draw those funds out in retirement at lower personal tax

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Incorporation Basics Part 2 – Income Splitting and Proposed Tax Changes

  In Part 1 of our Incorporation series, we introduced the corporation basic definitions and explained its lower effective tax rate. Many readers would notice that a single person needs to make a significant income more than their yearly living costs to benefit from the lower effective corporate tax rate/ tax deferral advantage. Nothing in personal finance beats the advantage of living within your means and a high savings rate. I have discussed saving techniques in earlier blog posts. Another

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Investing Basics Bonds Part 1

I’m a big believer in understanding the basic concepts of what you are invested in. Each asset class has its own unique characteristics, risk profiles and short and long term performance. Understanding why these investments act the way the do will help you have faith in the process of investing within them. The next few investing basics posts will cover the main types of investment categories that most professional investors will come across. What is a Bond? The first basic

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Incorporation Basics – What is a Corporation and Incorporation Advantages Part 1 – Lower Effective Tax Rate

  Many professionals are busy wondering how recent proposed federal government changes by Bill Morneau will affect the value of incorporation.  For those with corporate structures, many will have already read opinion pieces that give an idea of what will likely change if proposed measures are finalized in October 2018. I found the following article to be a fairly good overview, but many articles presume a basic understanding of corporations and their benefits. I read the very detailed 63 page

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Financial Independence/ FIRE (financially independent retire early)

  A few readers have had the question of what does financial independence actually mean and how do you know if you can retire early. We are out camping with the kids and enjoying the beautiful BC and Alberta scenario for a few weeks. I can’t really do any calculation specific posts due to time constraints, so I thought I would do a quick post to cover the FIRE topic. FIRE/ financial independence typically implies you have enough income producing

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Building Your Financial Plan Part 3 – Budgets and Cash Flows

This is the 3rd post in building out a proper personalized financial plan. Budgets and cash flows are one of the most important determinants to a sound plan since your spending determines a number of the inputs we will calculate around retirement needs, insurance and savings requirements. Tracking Your Spending and Creating A Budget The first step to saving is to understand where your money goes. The bad news is that if you have never done a budget, the first

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Building Your Financial Plan Part 2 – Understanding Your Financial Personality, Values and Goal Setting

This is our second post in the steps to building your comprehensive financial plan. See Part 1 here. Identifying how you feel about money and the role it plays in your life is an important first step to then evaluate what your financial goals are. Emotions and personality type can have a significant effect on your relationship with money and how it works for you. A few common behavioural categories have been identified when it comes to relationships with money and

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