Happy New Year!

Now that 2009 is over, its time to look forward to what 2010 may bring us!  Even though there is no crystal ball to foresee market directions, there are a number of things we can do to ensure that we are financially better off than last year.

Benjamin Franklin once said "...in this world nothing can be said to be certain, except death and taxes." Well, we can't do much about avoiding death, but we can help reduce your taxes with the Tax Free Savings Account (TFSA). As of January 4th you are now able to shelter an additional $5,000 from taxes.  If you haven't opened a TFSA yet you now have a total of $10,000 you can invest tax-free. Considering the taxman can take up to 46% in interest income it's wise to fully take advantage of a TFSA.

Your RRSP contribution room for 2009 is found on your the bottom half of your Notice of Assessment or 18% of your annual income.

The annual RRSP contribution limits are as follows:   

Most of the time the government is taking money from us so when the government offers to give us money, we should all be lining up to take advantage of it. For those of you with children, don't forget to take advantage of the Registered Education Savings Plan (RESP).  The government will add 20% of your annual contribution (up to a maximum of $500 per child annually) towards your child's post secondary education.  You may also receive the grant from unmade RESP contributions from previous years too.

For your reference, here is ScotiaMcLeod’s schedule for issuing 2009 tax slips:

Don't forget to keep all your renovation receipts to claim against the Home Renovation Tax Credit. You can still make improvements to your home but time is running out this temporary tax credit ends on February 1st, 2010.  With the government being prorogued we don't expect them to extend any time soon.

I’d like to conclude by saying how much I value your business and the trust that comes with it. I also extend special thanks if you have referred a friend, relative or colleague over the last twelve months. A referral is the greatest compliment I can receive, and I appreciate it very much.