Highlights of 2005
Courtesy of Alain Aubé, Investors Groups Consultant
It's hard to believe, but 2005 is over!
It has been an eventful year in financial planning, and I'd like to take
a moment to recap a few of the highlights.
* The rules governing Registered Retirement Savings Plans (RRSPs)
have changed. The foreign content limit was scrapped and the maximum
annual contribution ceiling was increased to $18,000.
* Those caring for disabled loved ones got a bit of a tax break -
the maximum amount of medical and disability related expenses that
caregivers can claim on behalf of their dependants was increased from
$5,000 to $10,000, beginning with the 2005 taxation year.
* Adoptive parents also received some help. Effective for the
2005 tax year, it's now possible to receive a non-refundable tax credit
worth up to $10,000 to offset certain adoption expenses.
* The Ontario government announced plans to do away with the
provincial tax credit for labour sponsored funds. This RRSP season
will be your last chance to qualify for the full 15 per cent tax break,
and the measure will be phased out completely by the end of the 2010
* Disabled students will have a little more time to save for, and
then complete, their education. The contribution period for
individual Registered Education Savings Plans (RESPs) has been increased
from 21 years to 25 years and the lifetime limit has been bumped from 25
years to 30 years.
* 2005 was also the first year in which lower income families were
eligible for an enhanced Canada Education Savings Grant. Households
with incomes of up to $35,000 are eligible for an extra 40 per cent
grant on payments they make to an RESP, while families with incomes
between $35,000 and $70,000 are now eligible for a 30 per cent grant.
I'd like to conclude by saying how much I value your business and the
trust that comes with it. I also extend a special thanks to anyone who
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.
Best wishes for a happy, healthy and successful New Year!
Investors Group Consultant
144 Pine Street - Suite 101
Retirement Planning, Tax Planning,
Investment Planning, Estate Planning,
Cash Management, and Risk Management
Contact me to book a free appointment
Phone: (705) 674-4551 ext 240
Toll Free: (800) 461-0131