marvin

Financial Tips for Planning the Wedding of Your Dreams

Getting married is one of the most exciting changes in your life. It is the ultimate celebration to cherish with your partner for the rest of your lives. However, weddings can be very expensive as the average wedding costs in Canada is approximately $30,000. But, you do not have to break the bank to create a stylish, special, and memorable occasion.

Here are the financial tips for planning the wedding of your dreams:

1. Stationery 

Stationery is one of the first things in your wedding list. These include invitations, save-the-date cards, and thank you notes, which can quickly add up. In order to help your budget, you should shop around for the best prices and keep your design simple and minimalist for the cheapest price. You can also print your own stationery at home for additional savings or even consider going digital with your stationery to be eco-friendly.

2. Wedding Transportation

Many people opt for a limo at their wedding, which can get very, very pricey. Instead of renting a limo for your wedding transportation, ask a friend or family member if they have a nice vehicle or a classic car you can use instead for your wedding day.

3. Dresses, Decorations & Flowers

You can easily overspend on your wedding dress, but you do not have to overspend. You can look into a boutique for your dress shopping in order to save some money. For decorations, choosing to have a wedding in December will save you a lot since most churches and venues are already decorated for Christmas and winter holidays. And for flowers, you can choose to use flowers that are in-season instead of using pricey flowers like peonies. Choose to stick to one or two type of flowers and a lot of greenery to fill in your arrangements.
Did you know you can save money at your venue by changing the time of day and duration of stay that you book? Booking a venue for your wedding in the off-season will make a dent in costs. Looking into a Friday afternoon or evening, or even Saturday around brunch will help you keep costs down. You can also consider booking a 3 hour event instead of a 5 hour event if you are looking to save more.

5. Catering & Cake

One of the most expensive parts of any wedding meal are drinks. Therefore, try asking your venue if you can provide your own drinks. For the menu, you can be less expensive by choosing chicken over steaks and giving your guest a choice of 2 entrees instead of 3 or 4. For your cake, you can purchase a smaller cake with one or two tiers rather than 3 or 4 to give you substantial savings.

6. Consult a Financial Advisor

When it comes to your dream wedding, you might be asking “what is the most-cost effective way to pay for our dream wedding?” Consulting a financial advisor will provide advice on how to efficiently handle the cost of your dream wedding.

by marvin

How To Start Investing With Little Money

I always imagined that having a solid investment portfolio requires a lot of capital and a very strong financial position. When I was 28 years old I had progressed in my career to a point where I was making enough money to satisfy basic needs, owned a home and was able to set aside a little bit of my income for rainy days.

At that point I still didn't think that I was ready to start investing, simply because I thought with the amount I have and I can contribute every month it would take forever to build a decent size portfolio that will actually help me build a more stable financial future.

You can start investing with little money. Investing in yourself doesn't require a lot of capital, it just takes getting started. Here's how I started investing with little money...

What happened next?

Through a casual conversation with a friend I addressed some of my concerns about investing. I then discovered that I wasn't well informed of all that is available in the market and that I should really sit down and talk to a Financial Advisor. The very next morning I booked a meeting with one. After about an hour of conversation I realized two things:

1. I don't know what I don't know, so it is always best to share my concerns with professionals in their field and let them do what they do best. 
2. I don't need a lot of capital (almost any) to start investing. All I need is good credit and a solid monthly financial plan.

It has been 6 years now and I am proud to share what happened since I met Andrei. I was introduced to the concept of "borrowing to invest". I'll break down the math of how everything worked out.

Please note that all of the numbers below are for illustration purposes only and that returns in the financial markets are never guaranteed.

However, this is my case:

I borrowed $200K to invest in 2012. I was servicing the interest on the loan every month at $668 (this number changed with the changes in the prime interest rate). I was not paying off any of the initial $200K I borrowed. All I did was service the interest.

In my first year I spent $8,016 in interest payments. This $8,016 was tax deductible, which in my case meant that I will get almost half of it back on my tax return. The gains I had in my first year on my investments were 12%. That is $24,000 in gains. At that point I had the option of withdrawing those $24,000 in order to service the interest. I chose not to and continued to service the interest on my own.

My investments have done well. 6 years later at an average of 11.4% return per year I now have $343K. This is without making any additional monthly contributions. If I decide to to payback the $200K back today and withdraw from my funds I'll have 143K from 6 years of investing with borrowed capital. I have spent a little over $48,000 in servicing the loan. Which leaves me with almost 100K in gains after all is said and done.

Is borrowing to invest right for you?

Depending on the type of loan, interest rate, and your personal financial goals and objectives, borrowing to invest may be a strategy worth considering. My advice to all of you is to talk to a Financial Advisor early in your life and start building a portfolio using an investment loan before you hit the age of 30. Just remember, you don't know what you don't know, so share your concerns with professionals in their field and let them do what they do best.

You can start investing with little money, you don't need a lot of capital and be in a very strong financial position. It's never too late to start building a decent size portfolio that will help you build a more stable financial future. If borrowing to invest makes sense for you, start today by contacting AWealth for more details on the program.

by marvin

7 Ways to Save a Down Payment For a House

Saving for a down payment is one of the least exciting and most difficult parts of the home buying process for a first-time home buyer. If you have never had more than a few thousand dollars in the bank, setting aside five figures or more as a down payment may seem impossible. But, saving for a down payment for a house is not as difficult as you may think.

Here are 5 ways to save a down payment for a house:

1. Prioritize

It is all about priorities when it comes to saving a down payment for a house. Are you the type of person who goes out to eat all the time, go on expensive vacations, and buy the latest stuff? Or are you the type of person who is willing to cut down on unnecessary expenses to save for a house?

So if saving for a down payment is one of your priorities, then it’s important to identify where you can cut back. The best way to find areas to cut back is to do a budget. This will help you put more money into your savings.

2. Pay off your debts

You cannot save money if you have outstanding debts. The first thing you need to do is to plan and dedicate yourself to paying off all your debts, commonly referred to as debt consolidation. Start by paying off your debt with the highest amount and interest rate. Then you should take the minimum payment from that debt and use it to help you pay off the next small debt with the highest interest rate.

Once you have paid these off, you can use the two minimum payments that you used to pay for those smaller debts to help you pay off your next debt faster. This will pretty much cause a snowball effect because the minimum payments you are freeing up will help you to make larger and larger payments against one debt at a time.

Related Article: Should You Contribute to Your TFSA or Your RRSP?

3. Get rid of one car

Do you have a partner and do you have two cars? You should consider getting rid of one car. Getting rid of a car will help you save thousands of dollars because you will save on one car payment, gas, insurance, and maintenance every month.

You can move closer to where you work, consider taking the public transit, and even carpooling to work. However, if this does not work for you, you can park your car for a couple of months in the garage, then sell your car once you see that it is working for you.

4.  Save extra income from work

Let’s say you get a bonus, tax refunds, or even a raise. You should take that extra money and save it into a separate savings account. It might not seem much, but it’ll eventually add up.

Treating these "windfalls" as money that was never there in the first place is a smart way to boost your savings without affecting your daily budget. By moving these funds immediately into a dedicated house fund, you avoid the temptation to spend them on smaller, temporary things. Over time, these unexpected amounts can significantly shorten the time it takes to reach your goal.

5. Borrow from your Registered Retirement Savings Plan (RRSP)

If you already have some money invested into your RRSPs, this is a great way to come up with a down payment for your house. However, if you do not, this is a good option to save money for your RRSP because you can get a tax credit to help reduce your taxes. You should contact your financial advisor to see if this option is right for you.

Using your RRSP is a common strategy that allows you to leverage your retirement savings for your first home purchase today. It is important to understand the repayment rules so that you can replenish your retirement nest egg while enjoying your new home. Your advisor can help you balance these long-term goals with your immediate need for a down payment.

6. Use a Tax Free Savings Account (TFSA)

Another good option to come up with a down payment for your house is using a TFSA account. The money you put into your TFSA will grow because you do not have to pay income tax on the money you earn. Again, you should contact your financial advisor to see if this option is right for you.

The flexibility of a TFSA makes it an excellent tool for home buyers because you can withdraw the funds at any time without a tax penalty. Because your investment gains are protected from the taxman, your money works much harder for you than it would in a standard savings account. This is often the preferred choice for those who want to keep their retirement funds separate from their housing budget.

7. Look into the First-Time Home Buyers’ Plan (HBP)

You should look into the first-time Home Buyers’ Plan. This will make it easier for first-time home buyers to afford a home. The HBP is a program that allows you to withdraw up to $25,000 in a calendar year from your RRSPs to buy your home.

This program is specifically designed to help Canadians get a foot in the door of the real estate market with more manageable terms. It provides a tax-free way to access your savings, provided you follow the schedule for paying back the withdrawn amount over the following years. Exploring this plan can be the key that finally turns your homeownership dreams into a reality.

by marvin

5 Things To Do When You Retire

Having a plan on how to spend your money after your retirement is crucial to your happiness and overall wellness. It is such a significant milestone to reach retirement after having worked actively for several years, taking care of your family, and saving for this day. A good plan allows you to have a seamless transition from the working life to your retirement.

Here are 5 things you should do when you retire:

1. Travel

Travelling to another country is a good idea now that you are no longer restricted by limited vacation time. You need to see a new environment apart from your present home where you were preoccupied with tasks such as catering to your family. A getaway experience will help you refresh yourself and transition you into the phase of your retirement.

Exploring new cultures and landscapes is one of the most fulfilling ways to celebrate your newfound freedom. By planning your trips thoughtfully, you can discover hidden gems at your own pace and create lasting memories that enrich your retirement years. Taking the time to wander and explore helps you gain a fresh perspective on the world and marks a beautiful beginning to this next chapter.

2. Volunteer

Many retirees find volunteering to be a rewarding activity. If you love staying around children, you could volunteer at mentoring programs. You can also volunteer to assist at a library or a hospital, join a local volunteer group, or even Peace Corps. However, you should consider what you enjoy doing before you choose where you would like to volunteer.

Giving back to your community provides a wonderful sense of purpose and keeps you connected with people from all walks of life. Whether you are sharing your professional expertise or simply offering a helping hand, volunteering allows you to make a meaningful impact while staying active. It is a heartfelt way to use your time that brings joy to others and a deep sense of satisfaction to yourself.

3. Get a Hobby 

Before you eventually retire, you should get a hobby that you’re passionate about. Start the hobby while you’re still working. This may be writing, knitting, singing, dancing, quilting, gardening, painting, woodworking, gardening, and more. The list is inexhaustible so you just need to identify what gets you excited about. This will give you an idea of the hobby you could be spending quality time on when you retire.

Developing a creative outlet gives you something to look forward to each day and keeps your mind sharp and engaged. Whether you are mastering a craft or learning a new language, a hobby provides a relaxing way to fill your time with activities that truly resonate with your soul. It’s all about finding those simple pleasures that make your daily routine feel special and uniquely yours.

4. Take Up a Sport

You will have a lot of time to retire, that’s why it’s good to be involve in a sport in order to engage yourself by practicing, exercising and playing. Apart from using your time wisely, it will also help you to keep fit. Meanwhile, remember that you are choosing a sport for fun and not to win a major champion or anything, so be careful and don’t end up hurting yourself. You can choose from golf, tennis, boating, fishing, biking, and many more.

Staying physically active is key to enjoying a long and healthy retirement, and sports offer a fun way to keep your body moving. Joining a local club or group also provides a great social environment where you can meet new friends who share your interests. By focusing on low-impact and enjoyable movements, you can maintain your energy levels and ensure you have the strength to fully enjoy everything retirement has to offer.

4. Start a Business

Although you are looking for way to spend he abundant time you’ll have when you retire. You should think about a small business to keep yourself busy. However, don’t invest too much capital in any new business. You can search for any online business that is convenient for you. Just remember to enjoy your time and try to live within your means to have great moments after retirement.

Turning a passion project into a small business can provide a stimulating challenge and a modest extra stream of income without the pressure of a full-time career. It allows you to stay current with modern trends and technology while setting your own hours and goals. By keeping things simple and manageable, you can enjoy the thrill of entrepreneurship while still keeping your focus on the relaxation and balance you’ve earned.

Embracing Your New Chapter

Retirement is more than just the end of a career. It is the beginning of a vibrant new journey tailored entirely to your interests. By balancing relaxation with active pursuits like travel, volunteering, and new hobbies, you ensure that your days remain meaningful and full of joy. With a thoughtful plan in place, you can move forward with confidence, knowing that you have the tools and the mindset to make the most of every moment in this well-deserved season of life.

by marvin

5 Key Tax Advice for New Parents

Having a child can be expensive. Luckily, the Canada Revenue Agency recognizes the costs involved and offers families a range of credits and deductions.

Birth-Related Medical Expenses

All Canadian taxpayers can claim medical expenses that exceed the lesser of either $2,208 or three percent of your net income. If you have medical expenses for yourself, your spouse or common-law partner, your child, or the child of your spouse or common-law partner, total all expenses and subtract the lesser of the two values quoted above. Then, multiply that amount by 15 percent. The result is used as a credit against your taxes owed, and of course, you may include birth-related medical expenses.

2. Eligible Dependant Amount

If you are a single parent, you may be able to claim the amount for an eligible dependent on line 305. To calculate how much you may claim, use Schedule 5, Amounts for Spouse or Common-Law Partner and Dependants. Then, transfer that amount to line 305. The maximum claim for this credit as of 2015 is $11,327.

3. Child Care Expenses Deduction

If you incur child care expenses so that you can work, run a business, go to school or do qualifying research, you may claim a child care expenses deduction. If your child is under seven, you may claim up to $8,000, and for child between seven and 15, you may claim $5,000. If your child qualifies for the disability tax credit, you may deduct up to $11,000.

To claim this deduction, keep all of your receipts form your child care provider, and use Form T778, Child Care Expenses Deduction, to help you calculate the amount of your deduction. Transfer the amount from that form to line 214 of your tax return.

4. Family Tax Cut

First applicable in the 2015 tax year, the CRA introduced the Family Tax Credit in 2014. The FTC allows qualifying families to claim a tax credit up to $2,000. This credit only applies in situations where if the higher-earning spouse were allowed to transfer up to $50,000 of income to the other spouse or common-law partner, they would pay less tax as a result. Both single and dual-income families may apply for this credit. The FTC will not be available in tax years 2016 and beyond.

To claim this deduction, keep all of your receipts form your child care provider, and use Form T778, Child Care Expenses Deduction, to help you calculate the amount of your deduction. Transfer the amount from that form to line 214 of your tax return.

5. Children's Fitness Amount

If you enroll your new baby in infant swimming lessons or some other type of fitness program, you may be able to claim the children’s fitness amount. To claim this amount, calculate the total amount of fees paid to qualifying fitness programs up to $1,000 and enter that amount on line 365 of schedule 1. Add an additional $500 if your child receives the Disability Tax Credit. Important changes to the Children’s Fitness Credit begin in 2016.

by marvin

How Do Employee Pension Plans Work?

Employer-sponsored plans are complicated. But with a few basic facts, you can make better decisions for you and your family.

1. What kinds of employee pension plans are there? 

There are two basic kinds of plans: defined benefit plans and defined contribution plans.

• Defined benefit plans provided members with a retirement income based on a calculation that typically factors in years of service with the employer and salary earned. The member may contribute to the plan during his or her time as an employee with the organization. Employer and member contributions are pooled in a pension fund and invested. The pension plan sponsor (the employer) is responsible for ensuring that the plan can pay members the required retirement income.
• Defined contribution plans allow organizations to sponsor plans without bearing the investments risk that comes with a defined benefit plan. Each member has his or her own account. Employer and member contributions are invested, usually based on investment options selected by the member. Your retirement income is determined by how your investments perform. Defined contribution pension plans, group registered retirement savings plan, employee share purchase plans, deferred profit-sharing plans and group tax free savings account plans are all examples of defined contribution schemes.

2. What role does my employer play in the plan’s management, and who else is involved?

Typically, pension plan sponsors rely on a rage of service provied, including plan administration services providers, investment fund managers, life insurance companies, trust companies, and consultants.

Insurance companies can provide third-party administration services and investment management. Trust companies provide custodial services. Consultants support plan sponsors and pension funds with services such as plan valutation, pension design consulting, member communications consulting and fund manager search services.

3. What happens if I leave my employer?

If you’re leaving a plan for any reasons, t can be useful to talk to a financial advisor. You’ll have several options many of which are complex.

Under pension legislation in most Canadian jurisdictions, defined benefit and defined contribution pension plan members may be automatically “vested.” This means you are entitled to recieve the benefits of your own contributions and those of your employer under the plan, without losing your employer’s contributions. In some provinces, you may need to work for your employer or be a member of the pension plan for a specified period before you become vested; if you leave before the benefits vest, you will receive only the value of your own contributions and earning. If your benefits are vested when you leave, you have several options, depending on the applicable legislation and the plan. You may be able to:

• Leave your assets in the plan you’re exiting.
• Transfer the value (“commuted value’) of your pension to another pension plan, if you’re joining another one that allows such a transfer.
• Transfer your commmuted value to a RRSP or other plan, which may be locked in (meaning you can’t withdraw the money until retirement).
• Take the cash value (if it’s not locked up).

4. Do I pay a fee to participate in a plan?

Defined benefit plan members do not pay fees directly, although the pension plan may pay fees for such things as investment management, actuarial services, etc., out of the pension funds.

Defined contribution plan members may pay fee for investment management, plan administration and other services. Often these fees are built into the management expense charges of the plan. These fees are typically low compared to those charged to retail account holders outside an employer-sponsored plan.

What are the advantages of being a member of an employer-sponsored plan?

There are 3 important advantages of workplace pensions:

• Pension plans have lower fees than most people can obtain for their own individual investments. For example, defined contribution plan funds typically charge relatively lower investment management fees than would be available to an individual – often less than 1%.
• Employers typicall also contribute to their employee pension plans. If you have an option to participate or to contribute, choosing not to join a plan or contribute can be like saying no to free money.
• Plans require you to save, thus taking away guesswork and many of the risks of trying to “time the market” (predict market up-and downturns). It can be difficult to take the time each month to set aside money for retirement savings, but pension plans provide valuable discipline. For example, defined contribution plan members can benefit from dollar-cost averaging when markets are down. By automatically investing a set amount regularly, you’re often able to buy more when prices are lower, instead of being tempted to pull of out the marketing. A pension plan can remove emotion from your investment decisions and help you stay invested for the long term, so you can make the most of your investments.

by marvin

Should You Contribute to Your TFSA or RRSP?

For many years, Canadians have been taking advantage of tax-deferred investment growth in their RRSPs. However, TFSA provides Canadians with a valuable new opportunity to enjoy tax-free growth.

Should you contribute to your TFSA or RRSP? There is no right or wrong answer because both TFSA and RRSPs are valuable and beneficial. However, in certain circumstances, one may be better than the other. Choosing where to contribute your money to will depend on a number of different factors.

Factors your should consider:

1. Are you saving for a long-term or short-term goal?

RRSPs were designed to provide for a long-term goal retirement. When you contribute to your RRSP, you get a tax deducation which means withdrawals are taxable, unless they’re made under the Home Buyer’s Plan or Lifelong Learning Plan. 

TFSA has the flexibility to accomodate short-term goals. When you contribute to your TFSA, there is no deduction permitted for the contribution which means any amount can be withdrawn, tax-free, at any time for any reason.

2. Are you looking for an effective way to split income with your spouse who is taxed at a lower rate than you?

When you contribute to your spousal RRSP, this will reduce the amount you can contribute to your own RRSP. If you make any withdrawals from your spousal RRSP, it will be taxed if they are made in the same calendar year as a spousal contribution or either of the two subsequent calendar years. After that point, both the income earned on the first contribution and any withdrawals made by your spouse will be taxable.

TFSA is ideal when you want to split income with your spouse. You can give your spouse money contribute to their TFSA and any income earned is not attributed back to you. Any withdrawals by your spouse is tax-free and can be done at any time.

3. Do you want to maintain your eligibility for income-test federal government benefits? 

TFSA withdrawals do not count as income, so they don’t affect eligibility for income-teested federal government benefits such as the Canada Child Tax Benefit, Working Income Tax Benefit, or Employment Insurance benefits.

So should you contribute to your TFSA or RRSP? Your ideal strategy will be to contribute the maximum to your TFSA and RRSP. By contributing to both, you will maximum your tax savings. You can always contact a financial advisor for wealth management services like AWealth to help you decide on how you can allocate your contributions.

by marvin

Millennials Planning for Retirement

Are you a Millennial? Well, I have some good news for you! You’re at the perfect age to take a few simple steps that will eventually give you financial freedom in your retirement years. Even though that might seem far a way, it’s simply good financial smarts to set aside money today for financial security in the future.

In 2016, Transamerica conducted a 25-minute online survey of 4,161 full-time or part-time workers who are employed by for-profit companies with at least 10 workers.

What’s working for Millennials?

Approximately 72% of millennial survey respondents said they’re saving for retirement in an employer-sponsored retirement plan or outside of work. The median about these millennials are saving is about 7% of their annual salaries. When it comes to saving for retirement, Millennials are in the middle of the pack, with about 58% actively saving for their golden years compared to 55% of Baby Boomers and 65% of Gen Xers.

by marvin

Are RRSPs Right For Me?

A Registered Retirement Savings Plan (RRSP) can help you invest your retirement savings. A RRSP is an account that is used for investment assets and holding savings RRSP’s have many kinds of advantages when it comes to taxes.

Benefits of RRSPs 

1. Tax deferred investments as long as they remain within the plan
2. Only your registered plan you may hold cash, bonds, mutual funds, and other types of investments
3. Tax deductible contributions

Making RRSP Contributions 

Your RRSP contributions are tax deducitbile which means you can claim them as a tax deduction when you file your income tax return and lower the tax you pay. There are limits on how much you can contribute to your own RRSPs and your spouse’s RRPs. Each year your total contribution is the lower of 18% of your earned income for the previous year or the maximum contribution amount for the current year which is $26, 010 for 2017. Keep in mind that if you are a member of a pension plan, your pension adjustment will reduce the amount you can contribute to your RRSP.

Let’s say you don’t have the money to contribute to your RRSP this year, you’re able to carry forward your contribution room indefinetely to future years. The unused contribution room will be taken into account on your RRSP Deduction Limit Statement. (You can find your RRSP Deduction Limit Statement on your most recent Notice of Assessment or on CRA’s My Account).

Contributing to your RRSPs make sense in a number of different scenarios:

1. Saving for your retirement 

One example of a scenario is, contributing to an RRSP is a structured way to actively save for your retirement. Since early withdrawal penalties are so stiff, you will be less tempted to borrow from your RRSP for purchases other than retirement like buying a home and paying for education.

2. RRSPs are tax deferred 

Another example of a scenario is, because RRSPs are tax-deffered, it makes sense to contribute to one during your peak earning years when you’re in a higher tax bracket, especially if you expect to be in a lower tax bracket come retirement.

3. Young people beginning their careers 

Another example of a scenario is, young people who are beginning their careers are likely in a lower tax bracket, so it’s a good time to open an RRSP as soon as possible because starting out early means you can take advantage of your investments compounding over time.

So are RRSPs right for me? 

One of the biggest reasons for opening an RRSP  is to take advantage of the tax benefits it provides. The funds you contribute to your RRSP will not be taxed as income until they are withdrawn. This is ideal when you retire and you’re in a lower tax bracket. Income that is earned within the RRSP accumulates tax-free. One of the other major benefit of RRSPs is that you receive tax credits for the amount you contribute up to a limit.

by marvin

Should You Set Up a Spousal RRSP?

Thinking on setting up a spousal RRSP? Should you set up a spousal RRSP?

A spousal RRSP are one of the ways that couples can split income in retirement. It is for the benefit of one spouse, but contributions are made, and deducted, by the other spouse. Think of spousal RRSPs as investment accounts for your spouse’s retirement which allows you to contribute money tax-free each year. Is there a big income disparity? Are you looking to lighten your tax load? A spousal RRSP will ligthen the tax load as it avoids a higher-income earner from having a large pile of retirement savings in their RRSP while the lower-income earner has a small pile. Setting up a spousal RRSP is a good strategy if you expect one spouse to be in a lower taax bracket in retirement because they provide the benefit of balancing retirement income.

What are the advantage?

 1. Big income disparity

Say you’re a big earner. You make $120,000 a year and your spouse makes $60,000. If you and your spouse had RRSPs and only the owner could contribute, you could put $18,000 (maximum allowed each year) into your RRSP while your husband/wife could contribute $9,000 (both amounts represent the maximum). However, with a spousal RRSP, you can even things out. You can contribute $12,000 into yours and $6,000 into your husband/wife. Therefore, you can still take the total $18,0000 deduction on your income tax and your husband/wife can still contribute $9,000 and take that deduction too.

2. A spousal RRSP aren’t just for retirement

A spousal RRSP aren’t just for retirement. Let’s say one parent decides to leave work or to go back to school. When you contribute to a spousal RRSP in advance, this will allow your husband/wife to withdraw money will unemployed and pay only a little bit of tax and save the contributing husband/wife some tax money now.

3. If one spouse is older than the other

It’s also beneficial if one spouse is older than the other. The older spouse can continue to make RRSP contributions to the spousal plan until the end of the year the younger spouse turns age 71 (provided the contributing spouse has qualifying earned income and available contribution room). There are attribution rules associated with early withdrawals from a spousal RRSP.

by marvin