Professional Financial Planner New Westminster
While
the COVID-19 pandemic has hampered the health of many, it has also impacted
livelihoods and businesses. If you have faced financial setbacks due to the
virus, besides looking after your physical and mental health, you’ll need to
pay attention to your financial standing as well. Accordingly, your next step
is to determine the best way to maintain steady cash flow so that you can
obtain the necessities you need to survive.
If
you’re struggling to maintain financial stability, chartered professional
accountant, Sabeeh Naseer, has listed five tips to help you out during these
troubling times. Keep reading to know what they are and how you can take
advantage of them.
Personal
Tax Return New Westminster
Professional
Financial Planner New Westminster
1. Replenish
lost income
To
cope with the financial challenges induced by COVID-19, you’ll need to focus on
making up for all the income you’ve lost during the period of inactivity. Some
means of generating money include applying for government assistance, i.e., CERB,
CEWS, or looking at secondary employment in essential services.
2. File
your taxes
If
you plan on obtaining financial aid from government programs, you may need to
file your prior year taxes. This is to verify whether you actually require the
funds being handed out by the government.
3. Speak
with your bank, creditors, and others
Get
in touch with your landlord, car insurance provider, lenders, and other
creditors to negotiate reduced or deferred payment or get a reduction in
interest rate. You especially need to do this if you’ve lost your job or have
faced pay cuts.
4. Analyze
your expenses
If
your inflow of revenue is reduced or stopped, you need to look at areas where
you can cut-back spending to save money for necessities. Some of the expenses
you can cut are memberships, car insurance, and other similar expenses.
5. Manage
your savings
In
case you still have a job, make sure to plan your savings. You can do this by
monitoring expenses and shopping only when required. Set saving goals and
towards them to ensure you have enough in the event of emergencies.
For
more tips on how to manage your money during this pandemic, reach out to
chartered professional accountant, Sabeeh Naseer. He is a highly trained
professional and has extensive experience in the field of accounting. This
enables him to provide exceptional services to clients across Lower Mainland
and Fraser Valley, including New Westminster, Surrey, Vancouver, Burnaby,
Langley, Delta, Richmond, and Coquitlam. Under his supervision, we get to know
the ins and outs of your business and financials to find you the perfect
solutions to achieve your goals.
HOW TO
CHOOSE BETWEEN TFSA AND RRSP
Author:
SABEEH NASEER | Jun 05, 2020 | Categories: ACCOUNTANT , ACCOUNTING , ACCOUNTING
FIRM , ASSURANCE SERVICES , BOOKKEEPING , BUSINESS ADVISORY , CHARTERED
PROFESSIONAL ACCOUNTANT , CORPORATE TAX RETURNS , FINANCIAL STATEMENT , ONLINE
ACCOUNTING , PERSONAL TAX RETURNS , SR&ED TAX RETURN , TAX PLANNING , TAX
PREPARATION
When
it comes to saving money and getting a tax break, there are several options to
choose from, and TFSA and RRSP investments are at the forefront! If you have a
sufficient flow of income, investing in both options can multiply. your saving
and tax benefits. However, if you find it challenging to invest in them
together, you’ll need to choose between the two. To help you make the right
choice among a TFSA and RRSP so you can meet your needs in the long run,
chartered professional accountant, Sabeeh Naseer, has compared the pros and
cons of both savings plans. Keep reading to see how each option differs, and
which is recommended for your needs.
1. TFSA or
Tax-Free Savings Account
A
TFSA is an un-taxed account that allows you to grow your income and make
withdrawals without incurring taxes (as it’s made up of after-tax
contributions). This account offers ample flexibility as you can withdraw money
at any time for any purpose. Thereby making it a great investment option if you
have a lower income.
The
downside to this investment account is that there are no barriers to
withdrawals, which means you can exhaust your savings quickly if you aren’t
careful. Other disadvantages of this account are that you will not receive
income-tax reductions on it, and you will have no protection from creditors.
2. RRSP or
Registered Retirement Savings Plan
RRSP
is a tax-deferred account. Any contributions made here are tax-deductible. By
investing in this account, you can grow your savings tax-free, and then convert
it to get regular payments when you retire. If you decide to open a spousal
RRSP, you can significantly reduce your combined tax burden. Another benefit of
this investment vehicle is that you can borrow from your RRSP to buy your first
home or pay for your education.
The
disadvantage of using an RRSP is that all of your withdrawals from this account
will be considered as ordinary taxable income. Similarly, withdrawals from this
account will impact your income tax benefits. Also, the maximum contribution to
this account is limited, which means you may need to put some of the personal
goals on hold for longer.
Bottom line
As
you can see, both the TFSA and RRSP investment plan have their pros and cons.
As a result, you need to choose between them based on your financial
circumstances and personal goals. For example, if you receive a low income,
investing in a TFSA makes more sense. On the other hand, if you want to save
for a second home, an RRSP is a good investment. Other factors you need to
consider to decide between these options is if you are a first time home buyer
and if you have high disposable incomes.
For
information on different investment plans to grow your wealth, reach out to
chartered professional accountant, Sabeeh Naseer. I am an experienced
accounting professional with vast knowledge and skills in several areas of
financial planning, management, tax preparation, and wealth maximization. I
focus on your needs and ensure that my plans drive you to your goals of
financial growth and flexibility. My accounting firm serves clients across
Lower Mainland and Fraser Valley, including New Westminster, Surrey, Vancouver,
Burnaby, Langley, Delta, Richmond, and Coquitlam. Access the web
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