Happy New Year!

By john@panago.info   2025/01/03

A new year brings Canadians new numbers.

Basic personal amount:

Federal and provincial tax commences after $14,538 to $16,129, depending on your overall income. If your income is below these numbers, then you pay no income tax. For students, people entering the job market for the first time or part time employees, this is a good number to review.

2025 TFSA contribution limit:

A Canadian resident can contribute $7000 into their tax-free savings account (TFSA) in 2025.

Lifetime TFSA contribution limit:

The TFSA started in 2009. Assuming you have lived in Canada since then and have never contributed to a TFSA then the maximum you could contribute in 2025 to this account is $102,000. If you have money sitting in a non-registered savings or rainy-day fund, consider re-allocating into your TFSA to erase the tax you owe each year!

RRSP limit:

The RRSP limit is 18% of your 2024 earned income or $32,490, whichever is less.

RRSP deadline:

The deadline to contribute to your RRSP for the 2024 tax year is Monday, March 3, 2025.

RESP contributions:

A $2500 contribution can provide a $500 CESG grant.

If you missed 2024 or other years, then a $5000 registered education savings plan (RESP) contribution can provide a $1000 CESG grant!

If you do not have a lump sum to contribute, you can spread out your contributions monthly.

Catching up on unused RESP contributions can unlock generous government grants for your child’s education. Grandparents, uncles, aunts and family friends can also open RESPs for children.

$1,000,000 ten-year term life insurance:

Have you considered what would happen to your family, debts, bills and other financial obligations if you were not there? 35-year-old male and female non-smokers can expect to pay $36.18 and $26.46 per month respectively for a new life insurance plan. Life insurance provides a tax-free cash payment to your beneficiaries, estate or business in the event of premature passing.

$100,000 ten-year term critical illness:

If you were to experience a serious medical condition such as life-threatening cancer, heart attack, or stroke, how would your finances hold up? A lump sum critical illness benefit is paid to the insured while living and can be used in any way such as replacing lost income, paying for private treatment, having a partner take time off work to care for you, modify your home or even take a vacation to recuperate.

35-year-old male and female non-smokers can expect to pay $30.86 and $32.06 per month respectively for a new critical illness insurance plan.

Reach out to John to see how he can help you achieve your finacial goals and dreams.

#bettercalljohn #protectandprosper #cfp #askmehow

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