Well, with April 30th in the rear-view mirror,
it’s time to turn our attention from receipts and filing compliance to what to
do with our refunds.
Eight in ten Canadians (79%) expect to receive a refund this
year. To date, the average individual
tax refund has been $1,585, amounting to almost $14 billion CRA has paid out as
of April 18, 2013. More than half of
those getting a refund expect to use it to pay down household debt, or simply invest
it.
According to a study done by BMO Nesbitt Burns, those
anticipating a refund intend to:
·
Pay household bills, credit card balances,
mortgages and other debt (37%)
·
Save the money or invest it in a RRSP, RESP or
TFSA (20%)
·
Spend it on travel, leisure or luxury goods
(10%)
·
Conduct home renovations (7%)
·
Registered
Disability Savings Plan (RDSP) Significant government support and tax
benefits are available through these plans for families with disability
issues.
·
Non-registered
investments Whether investing directly or using leverage, tax efficiency is
a key issue when managing non-registered investments. Make sure to have a plan and dovetail it with
other savings.
·
Save for
a rainy day You may be financially stable today, but by establishing an
emergency fund you can create a safety net in case of an unexpected change in
your employment status or income.
·
Live it
up… a bit After all, saving is just
spending-in-waiting – but try and maintain balance.
If you are holding a refund cheque and not quite sure what
to do, give me a call I can suggest a few ideas depending on your individual
situation.
Have a great sunny weekend!
Tracey
Sources: Advisor.ca
and Invesco Trimark
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