Here are some quick tips to get you started with your 2010 taxes:

1. Gather all your paperwork – 2009 taxes, notice of assessment, CRA access code, tax slips.
2. Will you do them or will you use a tax preparer?
3. Software or paper return? You can use the software to prepare your taxes and then print and mail or submit electronically.
4. Do them on time, especially if you owe money.
5. Have a plan for your refund.

Keep your files & your notice of assessments.

It’s tax time……do you procrastinate? I don’t think anyone likes doing their taxes, particularly if you think you owe money. For most of us, it’s never as painful as imagine. Tax software makes completing taxes very simple and straightforward….essentially data entry. If your income taxes are basic, it may take no more than 1 hour to do them, print and submit. The trick is to have all your tax slips and other information on hand, including your Revenue Canada access code.

Tips and tricks to spend without guilt. How do you do it? There are many expenses such as ‘needs’ that don’t attract guilt. They may cause anxiety but the thing is that we need them ….. right? That’s the big question.

Knowing the difference between needs and wants and making wise choices. Shelter and food are necessities although what we spend may vary greatly. Dictated by income, preferences and desire, a weekly food bill may be quite different for you and your neighbour. Read more »

Do you feel guilty about what you spend? Maybe both. The way we think and feel about money can be very different for women and men. The psychology of money. To have your personal finances under control can mean a great sense of power. I’m not talking about being ‘rich’ but having confidence that you can pay the bills and have a lifestyle you enjoy. Perhaps it’s not as luxurious as you’d like but maybe you have a plan for that! Read more »

Or is your money in control of you? Ladies, it’s time to take charge! Money is a tool which we all use to varying degrees. Some people can live on very little, some enjoy extravagances and indulgences while the majority work hard to make ends meet. Read more »

It does take some effort and the desire to make choices but reaching financial goals can be quite straightforward. Here is a quick ‘how-to’. Read more »

What is an RRSP? What is a TFSA? What can they be used for?

A RRSP is a Registered Retirement Savings Plan and a TFSA is a Tax Free Savings Accounts. They are similar in some ways and quite different in others. Read more »

Part 3: What tools to use, how to start and a case study. Read more »

Part 2: How to calculate how much annual income you’ll need.

Take a moment to review your estimated retirement expense budget. Have you included needs, wants and lifestyle expectations? Have you included large items such as vehicle replacement or home maintenance? Once you’ve included them, calculate the total annual amount. (Note that this is an after tax requirement and depending on the source of funds for your retirement income, you will need to draw out enough to pay any required taxes and funds to cover your budget.)

What other resources will you have? Government pension, employer pension or other savings? Do you plan to downsize your home and use the difference in equity as savings to contribute to your retirement lifestyle? Calculate what annual income you will have and compare it to your annual expenditures. What is the difference? The difference is what you require in income from your savings to cover your expenses.

Now that you know this number, use a bank retirement calculator to find out how much you need to save on an annual basis to achieve this goal. Remember, this is a target and you can always adjust your lifestyle! Convert the amount to a monthly number. Don’t let large numbers scare you. Knowledge is power and now that you have an idea what your expectations will cost you can experiment with the numbers and figure out how you’ll achieve your goals.

1. Review
2. Calculate an annual figure and calculate a monthly amount.
3. Subtract other income you expect (pension)
4. Use a calculator to obtain a target annual savings
5. Convert it to a monthly number

The number may seem large and scary but it’s important to start somewhere and increase your savings when you can.

Next week – a case study and how to do it.