Should Deposit Insurance Be Raised from $100,000?

The Canada Deposit Insurance Corporation’s (CDIC) deposit protection is automatically applied when investors deposit money with a member bank or credit unions.  The object is to protect depositors should a bank fail.  The good news?  There has not been a deposit insurance payout in almost 30 years.  But now the framework is under review and both advisors and their clients may wish to weigh in, in particular because the deposit insurance limit is currently only $100,000 in specific deposit categories. 

This year, Tax Freedom Day for Canadians fell on June 14, 2019; one day earlier than last year, but almost two months after the US reached the same milestone. The Fraser Institute calculated Canada’s 2019 Tax Freedom Day based on a household income of $117,731 with a 44.7% total tax bill.* This means that the average Canadian works 163 days each year to pay $52,675 in taxes, before they start making disposable income for themselves.

The 2019 Federal Budget introduced two changes aimed at making it easier for first-time home buyers to purchase a home in Canada. This is important due to the new mortgage stress test, and also raises other important questions should housing prices drop.

The CRA recently released a notice that warns Canadians to be on the lookout for real estate investment schemes that promise a significant tax write-off—more than double what you invest. But the old adage rings true: if it sounds too good to be true, it probably is. If you have a client approach you about a great real estate investment, here’s what you need to know to provide them with sound, financial advice:

Mentorship matters, and online studies offer a great opportunity for you to encourage the continuing development of your hard-working tax or financial services team. To support you in your business development pursuits, Knowledge Bureau is introducing a new “Study With a Buddy” enrolment offer.

Knowledge Bureau graduate Jim Gunn of Ontario pursued his Real Wealth Management (RWM™) designation to complement his other credentials, which including CFP, RRC, CEA, CPCA, and Insurance Broker. His goal in obtaining his RWM™ was to help his diverse client-base with niche issues using a holistic approach while building trust and delivering value. Here’s his story:

Tax evasion will take precedence over tax reform according to the federal Finance Minister, who attended a June 5 meeting of the Senate Finance Committee. That’s the same day the Joint Chiefs of Global Tax Enforcement (J5), which the CRA is a part of, celebrated its first anniversary.