“Welcome to the PlanEasy blog! We make personal finance easy.

Thanks for visiting.”

– Owen

Canada Child Benefit Increase! What Will Your Monthly CCB Be?

Canada Child Benefit Increase! What Will Your Monthly CCB Be?

The Canada Child Benefit is one of the most generous government benefits in Canada and it just increased! Unlike many government benefits, the Canada Child Benefit is available to low, moderate, and also some high income families.

The amount you receive from the Canada Child Benefit (CCB) depends on a few factors, one is the taxable net income for the family (line 23600 on your tax return), another is the number of children in the family, and the final factor is the age of each child.

The Canada Child Benefit is an “income tested” government benefit. The higher your taxable net income is, the lower your Canada Child Benefit will be. For some high income families, at a certain level of income the Canada Child Benefit will be reduced to $0. Anyone with income above that income level will not receive any benefit. The tricky thing is that this income level is different depending on the number of children and their ages.

The Canada Child Benefit also changes every year. New benefits start in July and are based on prior years tax return (the first payment of the updated benefit is July 20th).

The Canada Child Benefit also increases with inflation. The new 2020 Canada Child Benefit has increased by 1.9% versus 2019.

So how much Canada Child Benefit can you expect in July? We’ve got a table below that shows the Canada Child Benefit based on family taxable net income (line 23600) in $10,000 increments, so you can figure out generally how much you can expect in July

read more
Why We Haven’t Purchased A Critical Illness Policy

Why We Haven’t Purchased A Critical Illness Policy

Critical illness insurance is a unique type of insurance that will provide a lump-sum payment in the event of a critical illness. What is unique about critical illness insurance versus other types of insurance is that it is VERY specific about what is covered.

Unlike disability insurance, or life insurance, a critical illness policy has some very specific criteria that need to be met before benefits are paid out. While many people may feel that their illness is critical, a critical illness policy doesn’t actually cover many common illnesses but only specific “critical” illnesses.

The idea behind critical illness is good. It can provide financial support during a difficult period of time. A time that may see a decrease in income or an increase in expenses. It helps provide financial support during an unexpected and potentially life changing period.

But despite the benefits we’ve personally decided not to purchase a critical illness policy. We made this decision for a number of different reasons, which I’ll touch on at the end of the post, but first let’s review what a critical illness policy is and what it covers.

Warning: This is not insurance advice. These are my own opinions about critical illness insurance and shouldn’t be considered insurance advice. If you’re unsure if critical illness insurance may benefit you then you should speak with an independent insurance advisor.

read more
What Are OAS Clawbacks? How Can You Avoid Them?

What Are OAS Clawbacks? How Can You Avoid Them?

What are OAS clawbacks? How can you avoid them? How impactful are OAS clawbacks in retirement?

The typical retiree will receive an OAS benefit of $7,362 per year (in 2020) and over the course of a 30-year retirement would receive payments of $220,860 (in today’s dollars). That is a significant amount of retirement income!

OAS clawbacks can reduce this income all the way to zero. OAS clawbacks are 15% of net income, so they can have a big influence on a retirement plan. Experiencing full OAS clawbacks would mean that a retiree needs to make up this income on their own through extra investment assets. This may require hundreds of thousands in extra investment assets.

Avoiding OAS clawbacks is an important part of retirement planning. We’d like to avoid these clawbacks if possible. Through various strategies we can reduce or eliminate these clawbacks in retirement. This can be very beneficial to a retiree.

There are a few strategies that can help retirees avoid OAS clawbacks. Which strategy makes sense will depend on the retirees sources of income and their financial assets. In this post we’ve got 7 strategies to consider if you want to avoid OAS clawbacks in retirement.

But first, what is an OAS clawback?

read more

Owen Winkelmolen

Fee-for-service financial planner and founder of PlanEasy.ca

“Welcome to the PlanEasy blog! We make personal finance easy.

Thanks for visiting.”

– Owen

New blog posts weekly!

Tax planning, benefit optimization, budgeting, family planning, retirement planning and more...

Canada Child Benefit Increase! What Will Your Monthly CCB Be?

Canada Child Benefit Increase! What Will Your Monthly CCB Be?

The Canada Child Benefit is one of the most generous government benefits in Canada and it just increased! Unlike many government benefits, the Canada Child Benefit is available to low, moderate, and also some high income families.

The amount you receive from the Canada Child Benefit (CCB) depends on a few factors, one is the taxable net income for the family (line 23600 on your tax return), another is the number of children in the family, and the final factor is the age of each child.

The Canada Child Benefit is an “income tested” government benefit. The higher your taxable net income is, the lower your Canada Child Benefit will be. For some high income families, at a certain level of income the Canada Child Benefit will be reduced to $0. Anyone with income above that income level will not receive any benefit. The tricky thing is that this income level is different depending on the number of children and their ages.

The Canada Child Benefit also changes every year. New benefits start in July and are based on prior years tax return (the first payment of the updated benefit is July 20th).

The Canada Child Benefit also increases with inflation. The new 2020 Canada Child Benefit has increased by 1.9% versus 2019.

So how much Canada Child Benefit can you expect in July? We’ve got a table below that shows the Canada Child Benefit based on family taxable net income (line 23600) in $10,000 increments, so you can figure out generally how much you can expect in July

read more
Why We Haven’t Purchased A Critical Illness Policy

Why We Haven’t Purchased A Critical Illness Policy

Critical illness insurance is a unique type of insurance that will provide a lump-sum payment in the event of a critical illness. What is unique about critical illness insurance versus other types of insurance is that it is VERY specific about what is covered.

Unlike disability insurance, or life insurance, a critical illness policy has some very specific criteria that need to be met before benefits are paid out. While many people may feel that their illness is critical, a critical illness policy doesn’t actually cover many common illnesses but only specific “critical” illnesses.

The idea behind critical illness is good. It can provide financial support during a difficult period of time. A time that may see a decrease in income or an increase in expenses. It helps provide financial support during an unexpected and potentially life changing period.

But despite the benefits we’ve personally decided not to purchase a critical illness policy. We made this decision for a number of different reasons, which I’ll touch on at the end of the post, but first let’s review what a critical illness policy is and what it covers.

Warning: This is not insurance advice. These are my own opinions about critical illness insurance and shouldn’t be considered insurance advice. If you’re unsure if critical illness insurance may benefit you then you should speak with an independent insurance advisor.

read more
What Are OAS Clawbacks? How Can You Avoid Them?

What Are OAS Clawbacks? How Can You Avoid Them?

What are OAS clawbacks? How can you avoid them? How impactful are OAS clawbacks in retirement?

The typical retiree will receive an OAS benefit of $7,362 per year (in 2020) and over the course of a 30-year retirement would receive payments of $220,860 (in today’s dollars). That is a significant amount of retirement income!

OAS clawbacks can reduce this income all the way to zero. OAS clawbacks are 15% of net income, so they can have a big influence on a retirement plan. Experiencing full OAS clawbacks would mean that a retiree needs to make up this income on their own through extra investment assets. This may require hundreds of thousands in extra investment assets.

Avoiding OAS clawbacks is an important part of retirement planning. We’d like to avoid these clawbacks if possible. Through various strategies we can reduce or eliminate these clawbacks in retirement. This can be very beneficial to a retiree.

There are a few strategies that can help retirees avoid OAS clawbacks. Which strategy makes sense will depend on the retirees sources of income and their financial assets. In this post we’ve got 7 strategies to consider if you want to avoid OAS clawbacks in retirement.

But first, what is an OAS clawback?

read more

New blog posts weekly!

Tax planning, benefit optimization, budgeting, family planning, retirement planning and more...

New blog posts weekly!

Tax planning, benefit optimization, budgeting, family planning, retirement planning and more...

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