By David Wm. Brown and Sarah Brown
Starting a conversation about someone’s age is a sure way to be the least popular person in the room. But while this is a no-go territory for cocktail party chatter, it’s a conversation you need to have with your parents.
Statistics Canada tells us that in 2007, people aged 45 to 64 paid for 75% of elder care. And now, a new generation is realizing that when their parents need long-term care, they’ll be called upon to fund it.
Protection if you need it. A refund if you don’t.
Critical Illness Insurance – Not Just for Adults
Most of us have experienced or known someone whose family has been greatly impacted by a parent being diagnosed with a life-threatening disease or condition. But what about when it happens to children? Sadly, all too often children are affected by childhood diseases such as:
- Type 1 diabetes mellitus
- Congenital heart disease
- Cerebral palsy
- Cystic fibrosis
- Muscular dystrophy
By Brenda Spiering, Marketing & Communications Manager, Client Solutions, for Sun Life Financial.
1. Registered Retirement Savings Plan (RRSP)
As soon as you begin your working life, you should have a Registered Retirement Savings Plan (RRSP). It’s one of the most tax-effective ways to save for retirement.
You’re allowed to contribute up to 18% of your earned income from the previous year to a maximum of $24,930 for 2015 and $25,370 for 2016. (If you’re a member of a group pension plan, your contribution room is reduced by your “pension adjustment,” an amount you’ll find listed on your T4.)
Contributions are tax deductible, meaning you can net a tidy tax refund while building your savings. Plus, you can turbo-charge your RRSP savings by putting that tax refund back into your RRSP as soon as you receive your cheque. Read more