14 Year End Organization, Financial and Tax Tips to Manage Your Personal Finances

As a chronic procrastinator I tend put all my non “attend to immediately” documents in baskets and boxes resulting in, at year end, a colourful array of documents.  There are letters, bills, invoices, receipts, statements and the occasional delivery menu that did not get filtered out.  The intention is to organize them, on a regular basis, in the near future.  In reality, this usually does not tend to happen until the end of the year.

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Tax Planning for Business Professionals: Dividends or RRSPs?

This article in the globe and mail discusses a novel tax strategy.  If you are an incorporated business professional - a lawyer, accountant or consultant -  it might be more benefical from a tax perspective to retain excess funds that would normally be transferred to an RRSP, in the corporation. The business owner would withdraw funds in the form dividends instead of a salary.  (It is necessary to have earned income eg. a salary to build RRSP contribution room.  Dividends are not considered to be earned income.) This strategy results in the following tax savings:
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What is your Net Worth?

There comes a point in many people's lives when they want to find out what they are worth.  This is much more difficult to quantify on a metaphysical level; however on a tangible level most people can figure out how much wealth they have created over time.  The definition of net worth is, very simply, the total of all your assets (what you own) less your liabilities (what you owe).
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