retirement Archives - WhiteWater Financial

Blog, Family, health benefits, life insurance, Retirees, retirement, rrsp

Retirement Planning

Most of us understand the benefits of sensible retirement planning. Still, it doesn’t feel relatively straightforward when it comes to creating your retirement strategy and putting it into effect. The reality is that, while there are lots of variables to consider, it isn’t as challenging to create an effective plan for retirement as you may think.

Firstly, let’s consider the merits of a retirement plan. Firstly, the plan will aid you in setting clear goals for your retirement, such as the age that you want to finish work and what you want your retirement to look like in terms of lifestyle. Secondly, it will help you establish how much you need to save to have a retirement that meets your objectives. Thirdly, a plan will allow you to choose your investment options wisely.

How you know how much you need to save is a common question. This depends on three factors:

Your age. It makes sense that starting to save for retirement when you are younger means that you need to save less money than starting later in life.
Benefits available to you. There is a range of federal government benefits that you might be eligible for, such as the Canada Pension Plan or Old Age Security.
Your plans for your retirement will inevitably affect how much you need to save to fund it.

If you haven’t started saving for your retirement yet or have less in your retirement savings plan than you would like, take a look at our top tips to accelerate your savings.

Make the most of RRSPs and TFSAs to minimize your tax bill and make your money grow faster.
Take advantage of any pensions or savings plans that your workplace offers, as your employer’s contributions can add extra value to your fund.
Look at your spending habits to identify opportunities to cut back outgoings and save more.
Think about putting spare money into your retirement fund.

Taking steps to create an effective retirement plan is a decision that will pay off as you approach later life, allowing you to have the savings for the retirement that you deserve.

Talk to us; we can help.

August 1, 2023/by WhiteWater Financial

Blog, business owners, corporate, Family, financial advice, Financial Planning, incorporated professionals, individuals, personal finances, retirement, tax

British Columbia 2023 Budget Highlights

On February 28, 2023, the B.C. Minister of Finance announced the province’s 2023 budget. This article highlights the most important things you need to know about this budget.

No Changes To Corporate or Personal Tax Rates

There are no changes to the province’s personal or corporate tax rates in Budget 2023.

Tax Credits Changes

Budget 2023 extends two corporate tax credits – the Farmers’ Food Donation Tax Credit until 2026 and the Interactive Digital Media Tax Credit to August 31, 2028.

As of July 1, 2023, the maximum annual Climate Action Tax Credit will be increased to $447 for an adult, $223.50 for a spouse or common-law partner, and $111.50 per child.

Renters with household incomes under $60,000 can apply for a new refundable Renter’s Tax Credit up to a maximum of $400. Renters with a household income of over $60,000 and less than $80,000 are eligible for a reduced credit.

Increased B.C Family Benefit

The B.C Family Benefit will increase as of July 1, 2023:

• The maximum annual benefit is now $1,750 for a family’s first child, $1,100 for a second child, and $900 for each subsequent child for families with an adjusted net income of under $27,354.

• The minimum benefit will now be $775 for a family’s first child, $750 for a second child, and $725 for each subsequent child for families with an adjusted family net income of more than $27,354 and less than $87,533.

The budget also includes a maximum annual supplement of $500 to single-parent families on top of the maximum annual benefit.

Carbon Tax Changes

Effective April 1, 2023, carbon tax rates will increase annually by $15 per tonne of carbon dioxide equivalent emissions. Qualifying commercial greenhouse growers will be eligible for a reduced point-of-sale reduced carbon tax on purchases of natural gas and propane.

The 2023 budget verifies that B.C. plans to implement an output-based pricing system (OBPS) that meets updated federal requirements to replace the current carbon pricing as of April 1, 2024.

Other Tax Changes

The budget introduces new taxation rules for online marketplace services and now excludes automated external defibrillators from provincial sales taxes.

Budget 2023 indicates refund rates for International Fuel Tax Agreement licensees will increase effective April 1, 2023. New purpose-built rental buildings will be exempt from the further 2% property transfer tax applied to transactions that exceed $3 million as of January 1, 2024.

Healthcare and Housing Spending

Budget 2023 contains several commitments to support health care and housing:

Various contraception options, including birth control prescriptions, will be free as of April 1, 2023.
One billion dollars has been committed to new treatment beds and treatment support for mental health and addictions.
$2.3 billion will go towards enhancing core services, recruiting staff, implementing a new pay model for family doctors, and fighting COVID-19.
In housing, $1.1 billion will be used to purchase land near transit hubs and improve student housing.
Over $569 million will be allocated to building projects and $454 million towards homelessness support and response programs.

We can help!

Wondering how this year’s budget will impact your finances or your business? We can help – give us a call today!

March 1, 2023/by WhiteWater Financial

2023, Blog, Financial Planning, retirement, rrsp, Tax Free Savings Account

2023 Financial Calendar

Welcome to our 2023 financial calendar! This calendar is designed to help you keep track of important financial dates and deadlines, such as tax filing and government benefit distribution. You can bookmark this page for easy reference or add these dates to your personal calendar to ensure you don’t miss any important financial obligations.

If you need help with your taxes, tax packages will be available starting February 2023. Don’t wait until the last minute to get started on your tax return – make an appointment with your accountant to ensure you’re ready to go when tax season arrives.

January 2, 2023/by WhiteWater Financial

Blog, Business Owners, Group Benefits, Investment, pension plan, retirement

Group Retirement Benefits

Working at an organization that offers a pension plan is one of the greatest financial advantages a Canadian can enjoy. Pension plans are designed to provide retirement income and help employees reach their retirement goals and for business owners- help retain key employees.

Pension plans can offer:

Employer contributions
Forced retirement savings for employee

There are 2 main types of pension plan:

Defined Benefit Plan
Defined Contribution Plan

Defined Benefit Plan

Retirement income is guaranteed, contributions are not.
The pension amount is based on a formula that includes the employee’s earnings and years of service with the employer
Usually, contributions are made by the employee and employer
The employer is responsible for investing the contributions to ensure there’s enough money to pay the future pensions for all plan members.
If there’s a shortfall, the employer pays the difference.

Defined Contribution Plan

Contributions are guaranteed, retirement income is not.
Usually, contributions are made by the employee and employer.
The employee is responsible for investing all contributions.
The amount available in retirement depends on how the investment performs including total contributions.
At retirement, the money in the account can be used to generate retirement income through purchasing an annuity or transferring the amount to a locked-in retirement income fund.

In summary, a defined benefits plan guarantees you a retirement income and a defined contribution plan guarantees contributions but not retirement income.

Talk to us, we can help.

March 4, 2022/by WhiteWater Financial