Apr 30, 2009 – Today’s Questrade Promo Code

$50 FREE REBATE @ Questrade

It’s and we have for you today the active Questrade Offer Code (Promotional Code)! Use the following promotional coupon offer code at Questrade to claim your FREE $50.

$50 Questrade Offer Code (Promo Code):

Canada

OR Click Here to Use this Offer Code at Questrade

Note: Input the above promotional offer code (colored in red) into the “Offer Code” input box when signing up for a new account at Questrade.com. Enjoy your FREE $50!

Check out this detailed Questrade Review

Investment Tip of the Day

RRSP (Registered Retirement Savings Plan)

rrspRRSPs are Canada’s clever way of helping people save money for retirement. Saving for many years is quite a herculian feet for most people but making planned contributions and withdrawals from your RRSP is a great investment way to get the most for your retirement buck.

The primary advantage of an RRSP account compared to standard investment accounts is the tax benefit. Contributions made into an RRSP are tax-free and the money held within this type of account can compound without having to pay taxes on the gains.

In that regard RRSP isn’t an investment as it is a container (an account) for investments. So you dont buy an RRSP you actually buy an investment into the RRSP account which you contribute into.

By not taxing individuals contributing to their RRSPs, CRA (Canada Revenue Agency) is rewarding those who are contributing to their twilight retirement years. RRSPs are actually tax-deferred rather than tax-exempt. Meaning any profits made from investments within an RRSP account (capital gains, interest, dividends) are not taxed to you as income right away. In fact they are taxed on it when the funds are withdrawn. The benefit of this is that for most people income tends to be lower in retirement than in your younger years.

So in other words RRSP provides a tax credit — it reduces your taxable income by the amount you contribute (up to a yearly limit).

RRSP accounts can be opened at any financial institution and investment house such as Questrade.

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Apr 29, 2009 – Today’s Questrade Promo Code

$50 FREE REBATE @ Questrade

It’s and we have for you today the active Questrade Offer Code (Promotional Code)! Use the following promotional coupon offer code at Questrade to claim your FREE $50.

$50 Questrade Offer Code (Promo Code):

Canada

OR Click Here to Use this Offer Code at Questrade

Note: Input the above promotional offer code (colored in red) into the “Offer Code” input box when signing up for a new account at Questrade.com. Enjoy your FREE $50!

Check out this detailed Questrade Review

Investment Tip of the Day

The 4 Golden Rules The Young Need to Know About Money

Money RulesAs generations get older a new one takes its place in the workforce and casual social living. However, as each new generation takes hold old problems resurface and these recipients must rediscover tried and true rules of the trade and how to manage their money. For those young and starting out their lives we feel it necessary to recap some of the four golden rules that they should know.

Don’t count on your degree. Way too many parents try to instill in their children that getting a degree is the utmost important thing to become successful and for the most part that is true, as determined by statistics showing graduates have a lower chance of unemployment than high school diploma recipients. However, never assume that just by having a university (or college) degree that it is an automatic invitation for employment. Times are tough; especially during national recessions. Having a degree during such downturns tend to not matter. It is always stressful looking for a job and so studying for a degree in a field that you genuinely enjoy is critical. Doing so will make the foot work all the more easier.

Control your credit. Credit card companies love to hand out credit to anyone who wants it. They camp out on college campuses eagerly signing up all too willing students who have a taste for plastic. Unfortunately, too many Canadians fall deep in debt which can potentially destroy their dreams. Learn to manage how to use credit. If managed correctly you can take advantage of interest-free credit (under credit card grace periods) allowing these card companies to pay for your better living, not theirs.

A Home is a residence not an investment. Most young people will be buying their first home. With generous offerings by the government like the Home Buyer’s Plan and credits it’s no surprise people like to own their own home instead of renting. People who own a home think that it is not only a place of residence but a long-term investment. However, on average most people only live in these houses for 5-7 years which is inadequate to appreciate in value to warrant any real quality returns. And with the ongoing housing crisis it is never a good idea to assume just owning a home will be a good investment. Try to look for houses with low interest rates and discounted prices, and most importantly, buy a home not as an investment but as a place to live in for most of your life.

Look to invest early and often. Young people like to spend their earnings on parties, booze, and anything else they can get their hands on. It is only later (and in most cases, too late) in life that they begin to realize they should invest and save for their retirement. Investing early and often is something of a rarity for people. Nothing is risk-free but learning to invest early through a well-balanced portfolio will help weather the ups and downs as time passes. To have a healthy nest egg for your retirement it is important that one be laid early enough.

Advice is just that: advice. Until one can take this advice and puts it into action it will not mean much. If you earnestly take these rules and apply them to your life you will be happier and wiser for years to come.

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Apr 28, 2009 – Today’s Questrade Promo Code

$50 FREE REBATE @ Questrade

It’s and we have for you today the active Questrade Offer Code (Promotional Code)! Use the following promotional coupon offer code at Questrade to claim your FREE $50.

$50 Questrade Offer Code (Promo Code):

Canada

OR Click Here to Use this Offer Code at Questrade

Note: Input the above promotional offer code (colored in red) into the “Offer Code” input box when signing up for a new account at Questrade.com. Enjoy your FREE $50!

Check out this detailed Questrade Review

Investment Tip of the Day

How Canada Handles Lottery Winnings

Canada Lottery RulesMost times when we Canadians here about record breaking lottery winnings it is by an American citizen with takings of $300+ million. And we also know they were taxed on those winnings. The U.S. taxes lottery winnings. However, in Canada winnings are 100% tax free!

If a Canadian is fortunate enough to win a national lottery the funds are handed over as cash with no tax burden of any kind. But there’s a catch. Although gambling, wagering, and lottery winnings are indeed tax-free in Canada you are subject to be taxed if the Canadian Revenue Agency (CRA) deems you are in the business of gambling. Being in the business of gambling removes a certain element of chance and so must be taxed.

But with such a generous gift by the Canadian government one can’t help but think they are losing untold amounts of revenue by not taxing lottery/gambling winnings. A growing debate has always swirled around this topic and the government has tried on several occasions to calculate the amount of revenue from all types of winnings but has always fallen short because they could never conclusively figure out what that total number was. And then there is the complexity of how to deal with tax deductions. If they are to tax lottery winnings and gambling profits then surely one should receive some form of tax deduction for the costs incurred to earn such income (e.g., the cost of buying a lottery ticket).

Debt-ridden provinces like Ontario even tried unsuccessfully in looking towards taxing such winnings back in 2004. Although the federal government agreed to never re-enter the gaming/betting field again some 25 years ago in exchange for continuing to receive payments from provinces it is actually quite amazing that no province has yet to charge taxes on its own provincial lotteries. The idea of never being taxed on winnings has seeped so deeply into the Canadian consciousness that doing so now would be suicidal to an elected official’s career.

So as a smart investor always be aware that any winnings you may from a Canadian lottery or gambling system is not taxable; so you do not need to report it on your personal income tax forms. One of the benefits of being Canadian.

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