The sun is out, and for many, summer brings a shift in pace with some time to rest, reflect, and reprioritize. Whether you’re spending time with friends and family, traveling, or navigating the school break, we often forget to take time to review our financial plan.
Now is an ideal time to do a mid-year review of your finances and reassess your priorities. Intentional planning goes a long way in preparing for the unpredictable. We’ve updated our summer checklist to help you stay organized and keep your financial goals on track.
Investment Contributions
- RESP – While there is no annual RESP contribution limit, we recommend that you contribute up to $2,500 per beneficiary per year to maximize the grant. Be mindful that the lifetime contribution limit per beneficiary is $50,000.
- RDSP – You may be eligible for up to $3,500 in matching grants depending on your income and contributions.
- TFSA – This year’s additional contribution room is $7,000. Remember to check for any unused contribution room from past years.
- FHSA – The additional contribution room this year is $8,000. Remember that you will only start accumulating room in the year that you open the account. Unused contribution room can be carried forward, but the maximum carry forward amount is $8,000.
Cybersecurity Tip: Take a moment to review the passwords on your investment and insurance accounts. Many companies now use multi-factor authentication to add an extra layer of protection for your information.
Legal and Accounting
- *Updated* Capital Gains Tax – On March 21, 2025, the Government of Canada cancelled the planned capital gains increase. Capital gains up to $250,000 will remain taxed at 50% for individuals.
- Corporate Taxes – Many corporations have a fiscal year-end in the summer. Now is a good time to prepare your tax documents and get them ready for your accountant.
- Wills – Make sure your will is up to date. If you do not have one yet, we recommend consulting a lawyer to create one. Alternatively, you can use online services like willful.co to set one up.
- Bookkeeping – Get your bookkeeping up to date now to avoid the rush later in the year.
Travel
- Insurance – Remember to have travel insurance before your vacation to protect your family from unexpected and costly medical expenses. Be sure to review your coverage details before your trip so you are well prepared in case of an emergency.
- Spending Plan – Create a spending plan ahead of time to avoid overspending while on vacation.
- Foreign Fees – Consider using a credit card without foreign fee transactions to save up to 2.5% per transaction.
With your finances in order, you can enjoy summer with confidence. Remember, while we may not be able to predict what lies ahead this season and beyond, we can prepare for it.
If you have any questions or would like to review your financial plan, we encourage you to check in with your financial advisor.