Year End Planning: A Few Answers

The end of the year is always a good occasion to take an overall look at financial issues. With the new year just around the corner, here are some ideas for you to consider.

1. Do You Have a Plan?

A good way to reach your goals is to have more than one. Take the time to identify them. Whether it is to purchase a cottage, to take a trip, to put money aside towards your children's education or a comfortable retirement, to take the time to sit down and give some thought to the means you have to actually reach those goals is probably your best investment!

2. Get Rid of Your Debts…

... and more particularly those with high interest rates or those that do not give you any tax relief because you cannot deduct the interests you pay from your income tax. Act now!

3. Save

Your debts are paid off, now it's time to save. Do it wisely (and mostly regularly) even if you have to start modestly. To save does not mean borrowing to contribute to your RRSP. To save money means to put aside part of your monthly income towards future projects. Get started!

4. Optimize Your Tax Status

Contribute to your own RRSP or your spouse's, acknowledge your losses, restructure your debts that are not tax deductible by transforming them into loans that are, accumulate your tax receipts. Consult a professional!

5. Reduce Your Expenses

Reduce your number of credit cards, bank accounts, life insurance policies, self-administered RRSP and credit margins. By doing so, you will reduce your administration and transaction fees. Also, it will be simpler for you to manage your affairs.