Getting Financially Literate

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Thursday, November 19th, 2015
7:00 PM to 8:00 PM

NOVEMBER IS FINANCIAL LITERACY MONTH. No matter what age you are, financial literacy is imperative to peace of mind, personal growth and building of a business.  To honour Financial Literacy Month, Emeka Udeagha, a really cool Financial Advisor from Investors Group, is kicking off a free education program - the 1st part of a workshop series is for Business Owners and Professionals hosted by MNP Chartered Accountants and Investors Group.

RSVP to 250-618-1701. Seating is limited. 7am – 8am on the 19th of November at the Community Futures Conference Room (#14-327 Prideaux Street, Nanaimo).

Emeka strives to make the financial world better for everyone – like the James Bond of finance. He has compiled five top tips that you can implement today to feel great tomorrow.

1) Use RRSP’s (Registered Retirement Savings Plan) and TFSA’s (Tax Free Savings Account)

While RRSPs and TFSAs work a little bit differently, they are both amazing tax shelters that can redirect your hard-earned money from the government into your pocket. RRSP’s lets you deduct your contributions from your income and defer paying taxes on a portion of your yearly income until you retire in a lower tax bracket-which would be true for most people. On the other hand, TFSAs contributions still grow tax-free, but you don’t pay any tax to CRA when you withdraw funds down the road.

2)  Save with a spousal RRSP

By setting up a spousal RRSP (for your significant other) and making contributions to it in the name of your spouse, (assuming your spouse is in a much lower tax bracket) you will get the same benefits as if you were putting the funds into your own RRSP. The best part about this strategy is, when the money is withdrawn in the future by your spouse, it will be taxed at a lower tax rate.

3) As a business owner or professional, you can supercharge your Charitable Giving.

If you are one of those commendable people who plans on leaving the bulk or some of your estate to charity when you pass on, you might be excited about this great news. You can reduce your tax bill substantially-and leave more to your charities of choice-by donating stock rather than cash while you are still alive. That’s because when you donate stock, you’ll still get the same tax credit you’d get it you donated cash, but you don’t have to pay any capital gains.

4) Avoid giving CRA a reason to audit you and your business

Many self-employed people pay their kids or spouse to do some work for the family business as a way of splitting income and reducing the family’s overall tax bill. But don’t get greedy and pay your 14 year-old $45,000 a year. You will only be asking CRA for an audit.

5)  Earn free tuition money by taking advantage of the Registered Education Savings Plan (RESP)

For every dollar ($1) you contribute into your child’s RESP, the government gives you 20 cents, up to a maximum of $7,200 in federal government grant money per child. In actual dollar terms, this translates to $500 in free money for every $2,500 you contribute per year, per child. In addition to this grant, which is called the CESG (Canada Education Savings Grant), there are other bonds and provincial grants that could be earned as well.

About Emeka:

Emeka is a Financial Consultant with Investors Group. He takes a long-term approach to holistic financial planning and believes that with a detailed plan, reviewed and updated regularly, clients will have the financial resources to realize their goals and stay on track. From working with business owners and professionals in building tax deferred wealth inside their corporation and in the areas of risk management, to retirement and estate planning for families, he and his team, alongside his group of specialists, will be with you every step of the way, providing you with the options and knowledge you need to make sound financial choices.