If you’re like us, you’re already planning for 2020. The holidays are the perfect time to plan for the coming year. To set goals while your stomach is full of hearty meals and delicious desserts.

What we thought would be helpful for you is to make you aware of some important changes coming for the new year. We are also going to give you a checklist of some important financial review questions that we ask our clients in every annual review.

Reminders & Updates

  • Tax Free Savings Account limits– On January 1st, 2020 you will have another $6,000 of contribution room. That brings your new total contribution room to $69,500 if you were at least 18 in 2009.
  • RRSP contribution room– You can contribute 18% of your 2019 earned income up to a maximum of $27,230. The deadline to contribute to your RRSP is March 2nd, 2020.
  • CPP Maximums– The CPP contribution rate is increasing to 5.25% (up from 5.1%) for the employee and employer up to a maximum of $58,700 of your earnings. This part of a 7 year schedule that will top out at 5.95% in 2023.
  • Federal budget is released in March 2020. We are expecting the basic tax exemption to be increased to $15,000/year. Up from $12,069 per year.
  • We are also expecting enhancements related to the Child Care Benefit and Old Age Security.

This is also the perfect time to set your intentions for the year.

  • Prioritize your major purchases you have planned for the year. This could be vacations, home renovations, gifts to yourself. Then start setting aside the money in a separate savings accounts. When you have the money, buy the item or book the vacation. 
  • How did you investments perform in 2019? 
    • Keeping in mind your appetite for risk, how did you investments perform against their peers? 
    • Is your portfolio meeting or exceeding your retirement goals? Are you getting the rate of return you need to reach your retirement target date?
    • Do you need to rebalance your portfolio? In 2019, North American markets performed well. Did this inadvertently put overweight in your portfolio in North America?
  • Has your income changed enough that you need to review your tax strategy? Tax planning is just as important as your rate of return. Are you applying the correct TFSA and RRSP strategy for your situation now and in retirement?
  • Insurances and beneficiaries. When was the last time you reviewed your home, life, and employee benefits? Are there any gaps or concerns? Are you beneficiaries up-to-date?
  • What is your net worth?- Net worth is your personal scoreboard. It’s the only way to know for sure if you’re making progress with your money. Net worth is everything you own minus everything you owe. Start tracking this every 3 months to know if you are making positive progress with your money. 

These are some easy wins you can complete in an hour and they don’t cost you any money. 

If you need help maximizing your finances in 2020 so that you pay the least amount of taxes and your investment portfolio is meeting your expectations- then contact us by clicking the link below. 

We will help ensure you are applying the correct TFSA and RRSP strategy for your income now and in retirement.

We will also give you a second opinion on your investment strategy so that you are getting the highest rate of return for your goals.

Contact us now by clicking here.