I may be ready for Christmas, and I may not be. More on the not side really. I hope to get done all tomorrow or the next day. Things are not going as smoothly as usual, and I am going to blame the myriad of appointments I have had over the last two months, plus the ones that are coming up in the next three months. Part of it could also be I have never been this late in getting gifts ready or knowing for sure if we are going to Harvey's sister for Christmas Day evening. I really don't like driving at night and will have to plan on having our big meal before or even the night before. Decisions, decisions.
Keeping my fingers crossed that Kris can get some of my techie problems fixed while he is at home. They really aren't that numerous, but cause me a bit of angst.
Our meeting at the bank went well and after moving some investments around I feel much better about the future and our cash situation. Moved some of my RRSP's into Tax Free Savings. I will take the tax hit as it should be offset by the medical, dental and optical costs. If we have to pay a little, that will be okay as well. The interest rates are pretty good right now and that is a big plus. Of course those could fall next year, but I will take the chance to gain the extra cash.
Off to get supper on the table and do a bit of work on the budget for next year. Harvey says to raise every line by 5%, but I am going to see what happens for a few of the larger expenditures before doing so.
Everybody have a wonderful evening.
God bless.
You shouldn’t have a tax hit for switching funds from RRSP to TFSA. Pretty sure it’s called a “in kind” contribution. May I suggest you double check with your financial advisor?
ReplyDeletePeggy
It was our financial advisor who asked if we could take the tax hit this year. Any taxes we owe would be more than offset by our deductions. The bank will withhold about 20% of the withdrawal as tax so not bad at all.
DeleteGod bless.
When you originally deposited the funds into an RSP, you received a deduction to your taxable income. As a result, when you withdraw from that RSP, the funds are added to your taxable income. The investment firm should have withheld a minimum of 10% for the taxes before the transfer was made to the TFSA. That will apply against any taxes that might be owing at the end of the year. It is a good idea to move funds to the TFSA, if you've got the room, because once the RSP has to be collapsed into an annuity (RIF), you must withdraw a minimum of 10% per year. Depending on your income level and the amount held in the RSP, that can result in a higher tax bracket. I'm planning to do the same this upcoming year.
DeleteOur bank advisor said approximately 20% will be withheld and I am fine with that. There is quite a bit of room in both our TFSA's and it is nice to know that the interest will not be taxed when we remove it from there. Going to try and move a bit more out next year as well. I do have some very small RRSP's so they should be enough to fill what we are allowed to have in TFSA accounts.
DeleteGod bless.
I will buy the food for our dinner - I do wish I had a Chef!
ReplyDeleteDo we ever feel entirely ready? I don't think so, and if you're like my family there is always something that gets forgotten. It will be nice to have some time with your boys, and if Kris can get the computer issues dealt with, that would be a lovely gift.
ReplyDeleteIt's good that you feel better about your finances after making a few changes. I hope you get your tech issues sorted this Christmas.
ReplyDeleteGreat blog
ReplyDeleteThose expense accounts are nice. This is first year we used all before the end of year on appointments, with several larger ticket items cashing in. Surgery, dental, and new glasses all around. I feel ready, but have really cut back what I do. We've stopped with the mass gift exchanges which has made a huge difference....except for the wee ones.
ReplyDeleteHope you have a great & productive day, and feel ready for the holidays :-)
ReplyDeleteI guess Christmas will happen whether we're ready or not. I delivered all but one lot of gifts today and those won't go until our son has a day off that coincides with the weather being good. Last year we didn't get together until June so who knows what will happen this year. At least the gifts are ready for when we do see them.
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