Generations Building Wealth Differently

Can Canadians build wealth in the current economic environment? Over the longer term?  After taxes?  These are important questions anytime but particularly at election time.  The traditional way to build wealth for Canadians families has been to buy a home, pay it off and even leverage the equity to borrow money to invest in the financial markets.  These wealth building exercises occur over a lifetime.  But today, new generations are building wealth differently.

Soon, a new decade begins and Canadians face a number of financial challenges, including the growth of debt-to-disposable income levels. Plus for seniors, there is the prospect of diminishing pensions as they face stock market volatility. Against this backdrop is the opportunity for tax and financial advisors to provide care by sharing more of their tax and financial knowledge in 2020.

In 2014, the New York Times* reported that the Canadian middle-class was considered the most affluent middle-class in the world, snatching the distinction away from the United States. Now, in 2019, do we still hold that distinction?

The average life expectancy in Canada now sits at 82.1 – a number that’s been steadily on the rise over the years, according to Statistics Canada*. This adds complexity and demand to the financial planning process when both current and upcoming retirees feel that they’re not financially prepared for retirement. In fact, they’re at risk of outliving their savings. What are the strategies financial advisors can use to help?

Payroll departments should be aware of a revised payroll deduction guide that was released on November 26, 2019, featuring the specific calculations that will be used in calculating statutory deductions for 2020 pay periods. The highlights are covered in this report and in the updated Advanced Payroll for Small Business course, which will be available to students on January 8, 2020.  

CRA will shut down EFILE Services for T1 transmissions on January 17, 2020 to convert their systems for the next filing season. Enrol to attend Canada’s most comprehensive 2019 T1 Tax Update, the Knowledge Bureau’s CE Summit 6-city tour, that starts January 16 so you can use this time to get everyone on your team well trained.  It’s a must-do for professional tax, bookkeeping and financial advisors. 

As long as there are businesses, there will be a need for bookkeepers. According to the Department of Employment and Social Development Canada (ESDC)*, the outlook for employment opportunities for Bookkeepers over the next three years looks promising for those looking to join the industry or continue in it, especially in the Maritimes, Quebec and Manitoba.  Here are the top 10 reasons to consider a career in Bookkeeping: