March 31, 2016
There is common advice that circulates that when investing, a person should be diversified. Diversity of types of investments is very good when investing, but if a person isn’t organized it can be a huge pain in the neck at tax time, and when dealing with individuals who have recently passed away. It’s hard to track for taxation purposes. Diversity is one thing, but having money with three or more financial planners can be very cumbersome.
When doing your taxes, if you have money invested with multiple financial planners it is harder to keep track of all your necessary tax forms and to make sure you have calculated your capital gains properly. It also makes it more likely that you will over contribute to your RRSPs and not be able to stick to a solid financial plan. It’s hard to have one plan with three financial planners.
Keep this in mind as you make investments in the future.
March 17, 2016
Here’s some more great advice for students.
Do you taxes! Even if you don’t expect to get a refund.
One of the most valuable credits that students get is the tuition credits. It might not seem useful for students in school but they are very valuable in your first year out of school with your first full time job. The tuition credits kick in and create a huge tax refund. If you don’t file your taxes you don’t log them in with the government and if they don’t get registered with the government they get lost.
I wonder sometimes how many wasted tax credits there are out there that have been lost to the government coffers just because students didn’t think they needed to file their taxes because they knew they wouldn’t owe.
I’ve helped more than one student go back and refile or file old tax returns to get the advantage of old tax credits.
Piece of Advice #2. The tuition tax form you need is called a T2202A and you can get it from your student portal.