Canada Needs a Financial Plan

According to a July 23 publication by the Fraser Institute, we are getting poorer here in Canada and the prospects for economic growth are looking grim.  This should be of concern to every Canadian concerned about their “real income” – that’s their purchasing power – and by extension - their ability to fund consumption now and for important family milestones in the future:  retirements, education and homeownership.  It’s grim, but there are practical suggestions for a turn around plan. Here’s a synopsis of the report.   

If you are a tax, bookkeeping or financial advisor looking to sharpen your technical tax knowledge to accurately prepare personal tax returns or provide sound financial planning advice this tax season, don’t miss Canada’s most comprehensive T1 Advanced Tax Update. Besides the comprehensive 330-page course, CE Summit attendees receive a three-month subscription to EverGreen Explanatory Notes, and a full day of peer-to-peer training with expert instructors.  It’s an outstanding value dedicated to enhancing your value proposition.

Join us in celebrating our 2019 graduates who completed their DFA-Tax Services Specialist™ and DFA-Bookkeeping Services Specialist™ designation programs. Knowledge Bureau is so proud of your achievements and we look forward to sharing knowledge with you in 2020.

It is estimated that about 425,000 Canadians will retire each year by 2020.*  But for many, it will be a retirement that includes debt, according to recent reports on the proliferation of reverse mortgages**.  Are Canadians planning soon enough for the one big question most worry about: will there be enough? A new edition of the best-seller Master Your Retirement by Douglas V. Nelson will help.

The tax system is not getting any easier for Canadians to comply with and things may get worse in tax season 2020. With a complicated new 8-page T1 return on the horizon, Canadian taxpayers already dissatisfied with their tax department service levels* join ranks with KBR poll respondents: over 90% of tax, bookkeeping and financial services pros answered a resounding no when asked: “As we begin a new decade, do you feel the evolution of our tax system has been positive?” Still, there were a few happy campers.

If you live in Manitoba, you’ll be getting tax relief from a number of post-election provisions that are noteworthy from a financial planning point of view. The removal of sales taxes on income tax preparation fees, home insurance, and the preparation of estate planning documents such as wills, health care directives and Powers of Attorney make an interesting case for having important financial planning conversations as a new decade begins. Probate fees will also be eliminated in July 2020.

There are lots of tax changes you’ll need to know about as you get ready to file the new 2019 T1s. This includes a new tax credit for digital news subscriptions, the introduction of passive investment rules for corporate owner-managers, changes to the dividend tax credits, a new CPP deduction for all contributors, a new Canada Training Grant credit and lots of changes to personal amounts. We announced many of these changes as they happened in 2019 and here’s what you, our readers, were most interested in. We’ll drill down even deeper in KBR 2020, so thanks for all of your feedback!