Given that November is over half done, and American Thanksgiving (with its forbidden Deep Fried Turkeys and Sublime Football games) is on the horizon, maybe it is time to start thinking about the fact that 2011 is pretty much upon us.
Some may say, Big Deal BCM how does this affect me?.
That is a very good question, a little naive for one of my readers, but still a good question. A New Year about to start, there is the coincidental issue of a year ending, in this case, a fiscal year. Some things it might be good to think about:
- Have you made a full payment to your TFSA this year yet? If not, best get that done soon, as I don’t think that Sunday Banking will happen until the new year.
- Have you opened a TFSA yet? If you do it now, you have this year’s limit and then next year as well, so you should be able to put $10000 in there, shouldn’t you? I am open to statements that this is correct, and as usual, you should check with the proper authorities to make sure you can do this. Maybe open a TFSA for any of your kids that are over 18?
- Do you give to Charities? If so, remember the end of the year for those payments are December 31st, so you’d best get your money in soon to those folks as well.
- Do you have a financial plan set up or goals for 2011? Now might be the time to start compiling this list, so you don’t feel rushed and you have time to think about what the new year might bring.
- Do your kids have RESPs? Might be a good time to put money in as well, especially if they get money from their Grandparents or Uncles. The RESP “calendar” is a little funny, I think it’s in Quarters, but I am not sure on that one either.
- Not sure but if you had an RDSP for a loved one that might be good to top up before the end of the year.
- Might want to mark on your calendar important dates that might be happening this coming year like:
- Mortgage renewal date
- Insurance renewal date
- Car Licensing dates
- etc., etc., etc.,
- Might be a good idea to buy a Calendar for 2011 as well!
I am sure there are many other interesting topics that I may have missed, so please comment away so I can make sure my list is complete.
heh. I was about to ask the question but I see you have a lot of alert and informed readers!
Regarding the TFSA, contribution room is created automatically, you don’t need to have an actual account to create it, but you do need one to use it! Come January 1st, if you haven’t made any contributions to a TFSA at all, then you’ll have $15,000 of contribution room.
Same goes for those that just turn 18. Once they are 18, they begin creating contribution room automatically.
About your quote on TFSA: “Have you opened a TFSA yet? If you do it now, you have this year’s limit and then next year as well, so you should be able to put $10000 in there, shouldn’t you? I am open to statements that this is correct, and as usual you should check with the proper authorities to make sure you can do this. Maybe open a TFSA for any of your kids that are over 18? ”
Either I read that wrong or there’s a mistake. According to CRA you accumulate contribution room every year, TFSA opened or not.
“TFSA contribution room accumulates every year, if at any time in the calendar year you are 18 years of age or older and a resident of Canada. You do not have to set up a TFSA or file a tax return to earn contribution room. If, for example, an individual is 18 or older in 2009 but is not obligated to file a tax return until 2016, they would be considered to have accumulated TFSA contribution room for each year starting in 2009.”
http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/tfsa-celi/cntrbtn-eng.html
I was under the impression that TFSA room grew whether or not you have a TFSA account.
From the CRA:
TFSA contribution room accumulates every year, if at any time in the calendar year you are 18 years of age or older and a resident of Canada. You do not have to set up a TFSA or file a tax return to earn contribution room. If, for example, an individual is 18 or older in 2009 but is not obligated to file a tax return until 2016, they would be considered to have accumulated TFSA contribution room for each year starting in 2009.