Starting Your Year Off Right

A new year brings new possibilities!

Much like on anniversaries, birthdays or other holidays, nothing particularly unique happens at midnight on December 31. The calendar’s turn is simply an observed ritual that allows us to pause and take stock of the past year and reset for the upcoming one. Although it is mostly symbolic, there is value to this ritual. Many of us use it as an opportunity to take a step back and view things with a sense of clarity that we usually don’t afford ourselves.

If you haven’t taken this opportunity, you may want to look at my last blog post for some helpful suggestions!

Looking forward, there are a few financial things you may want to be aware of in the new year.

As of January 1, you can now contribute an additional $5,500 to your TFSA up to a maximum contribution of $31,000.

Secondly, although you still have time, the RRSP contribution deadline for the 2013 tax year is just under two months away at March 3. Assuming you don’t have any carry forward room from previous years, the contribution limit is 18% of your 2013 income, up to a maximum of $24,270. To see if you do have carry forward room, check the Notice of Assessment form that you received from the government after filing your taxes. You can also use this helpful CRA link to access your personal information.

For additional details on how TFSAs and RRSPs work, you may want to take a look at this link.

I hope you’re starting your year feeling good about your finances. But if you’re feeling less than confident about your financial situation, I highly recommend you talk to an advisor or take other appropriate steps to learn exactly what your situation is and what it means for your future. You deserve nothing less!

Wishing you a phenomenal 2014!