Did You Know?
by Leo Richer, Chair, Pension & Financial Wellness Committee, ARTA
Here are the most common topics I have been asked about as a member of ARTA’s Pension and Financial Wellness Committee over the last four years.
1. Did you know that health and dental insurance premiums are deductible on federal taxes?
A recent retiree neglected to use these premiums as medical expenses. He was able to go back with his taxes and add this expense over the last two and a half years. His taxes were adjusted and he
received a refund.
2. Did you know that you could benefit from income splitting?
This is an easy process and can save money for couples who have unequal income.
3. Do you know that TFSAs can be used by all Canadians over 18 years of age?
Tax Free Savings Accounts are well worth having even if it is simply a savings account or a Guaranteed Investment Certificate (GIC). You would not pay tax on it. It is worth some research or advice from a financial advisor.
4. Do you know that everyone should have a financial plan?
In a recent financial seminar, the speaker indicated that many retirees just go with the flow. Good financial planning can alleviate future problems and reduce anxiety.
5. Do you know that everyone should have a will?
Do you have one? Is it current? Someone indicated that having two executors on a will increases a great deal of paperwork with needed signings and delayed decision making. Perhaps this is something you might reconsider.
6. Did you know that your Registered Retirement Income Funds (RRIFs) could affect your Old Age Security (OAS) pension?
It may be worth a look, especially if your income will go beyond the OAS threshold and impact that annual benefit.
7. Did you know that ARTA has some excellent material concerning financial concerns?
When you open the ARTA website, please go to the Wellness section and then choose Financial Wellness. Besides a collection of older articles, we have twenty-four posts since 2019. Many of these are well worth reviewing.
Financial wellness is but a segment of one’s overall well-being, and occasional reviews of one’s finances and long-term goals helps in aligning your life in the desired direction.