With a contribution room of now $10 000, all of the yearly saving made can go straight to the TFSA. And voilà. I am just not sure if its effective now or just on January 2016. I don't think its effective now. Its a good news for both frugal and the riches. For once, Stephen Harper is fabulous. I still have 18k available as contribution room to my TFSA. Its a shame, but I am slowly getting organized and I am investing more and more inside my TFSA.
Today, the federal budget was announced, and today, I did my citizen duty, I got my 2014 tax declaration finally done and completed. I was surprised because I have lot less than expected to pay back. I only had to pay extra something like $80 to the federal and $260 to the provincial. My income exceed the 50k in 2014. Not enormous, but still good. Anywhere after 50k is quite good.
Now that I had so little to pay in taxes, I know I can do a new investment move. So I guess I will be doing my investment in RBC tomorrow or real soon, quite real sooner than expected.
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I have read that it is effective January 1st, 2015. Also, the CRA will not argue with anyone contributing the extra $4500 after 21 April this year, as they deem the budget announcement as law.
The 10,000 test is effectively now so you can add another 4500 if you already added 5500 this year
The TFSA is effective immediately this year :D, so feel free to contribute when you have extra free cash (confirmed on TFSA website). Great job reaching the 50k income, tho paying $340 tax in total seems a bit low. Did you contribute to your RRSP or perhaps you employer really maxed out your EI, CPP, and tax payment. I remember making around 48k and contribute 2k in RRSP in order to have a refund of $400. Anyways just wanna make sure the calculations is right, but there are always reassessment. I myself having a hard time choosing between RY and TD as well, while RY its as seen more stable but TD now have more exposure to the US market. Gonna wait a bit and see if there's any pull back. Keep up the good work!!!
It is true readers, it seem like yes, the 10k is effective now!!! WOW.
Its not the first year that I am on the 50k income. And this year was actually getting closer to the 60k mark.
I have invested in the RRSP offer by my employer, I guess it what had helped me. Tax are higher in Quebec province and of top of that there's a health tax.
I did a happy dance all day long Haha
Cheers for all of us!
BeSmartRich
Hi Sunny,
What I'm interested in knowing is what your retirement date will be and what assumptions you have made about your investments in order to achieve your goals?
MArk
Hi Mark,
I never came with a day and time for retirement, people who does that exaggerate the journey.
In my case, once I will have enough to cover my basics and that I have a few thousands in saving and that I have enough of working for others, that will be the X day for me.
Its funny that you came with that question because I recently was reading an article about early retirement in Vietnam with $200 000 - and its the amount I have - but not my net worth. Its possible to live on $500-600 in Vietnam and I start imagining what my life could be living oversea.
Argentina is more appealing to me.
HI Sunny,
You and are on the same wave length..we both want to have liberty..
Do you have any idea how close you are to your goal of your having the option of working?
Cheers,
MArk
PS-I need someone to help motivate me even more to reach my day X:)
How much new money did you invest in 2014.
I am not half closed of being financially independent. To keep it safe, $2 000 a month would be the ideal, but I can live on much less, $1 200 to $ 1 500.
I don't know exactly how much I invest in 2014, good question, but I didn't invest much in 2014.
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