Aaron Hector, R.F.P., CFP, TEP @AaronHectorCFP Twitter profile

Pinned Tweet

Aaron Hector, R.F.P., CFP, TEP

2 months

Okay - let's level up this tax planning. This is a long thread, but it's a good one. I promise. First - reacquaint yourself with the below thread if you haven't already read it, then read it... then come back and read the below advanced tax planning thread.

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

2 months

Sunday tax planning tip. A couple has evenly contributed to a non-registered investment acct and now are legitimately allocating the income and capital gains 50% on to each of their tax returns. What if one retires earlier, or, they are in different tax brackets? Read on 👇

8

6

73

11

9

95

Last Seen Profiles

@SW1586

@aphrahman

@chiesbuy

@pp25_kirinn

@alsqbrat

@sevenenosa

@OHS_Braves_ss

@barbnese

@meow_yukimomo

@markslvv

@massu8197

@Baladria

@vairins

@iAnasMatar

@akoniingles

@flashst3p

@huxcley

@HomoConNYC

@notleonaaa

@asfandk17801542

@slowdelay

@PandaSaudi

@jeune_elephant

@yuuawaw

@muhdiiqbal

@ppoppos2_523

@ElChingon185840

@LinesNotTeams

@stw_pdg

@OmniaLasVegas

@TheSuspendables

@cukienaknikmati

@JBSM_Berghahn

@benandstefpod

@lukebryan

@orugatomorrow

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

1 year

Crazy story. This past week I was talking with someone who (in the late fall of 2021) was buying a new vehicle from a dealership in Calgary. They negotiated the price, and then at the end said they were going to pay cash. This is where it gets weird.... 👇

95

243

1K

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

25 days

I am getting really tired of being lied to.

51

101

984

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

2 months

Master Thread - Capital Gains Tax Changes Below are the facts that relate to individuals, broken out for each province and territory. This assumes top marginal tax rates across the board. Changes effective June 25, 2024

29

106

575

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

4 years

@_always_thinkin @RexChapman Video is two years old but only just released to the public this week by the judge during the officer’s trial

5

433

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

1 year

I wonder if this has been happening all over the place with car dealerships? It's the first I'd heard of it. Just crazy.

58

4

437

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

1 year

So basically, they would 'package' the one loan that is 87.5% paid off with the other very highly leveraged loans, and then offload the whole package to another financial institution. The low risk of the one "good" loan would bring the average of the package down.

7

17

376

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

1 year

So basically, in late 2021.... as a result of this way of doing business, 8 or 9 people get brand new cars that they shouldn't have qualified for. Then, a few months after that we started to see inflation take off and cost of living jump.

6

10

334

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

1 year

Personal finance should be taught in high school. I'm not willing to accept the arguments against this. We should NOT be sending our youth into adulthood with zero exposure to basic principals like income tax, acct types and their characteristics (RRSP/TFSA/FHSA/Non-Reg) & more.

35

37

317

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

8 months

Pictures can say a thousand words. Here’s a quick thread on dividends, as told by Granny Smith.

30

42

302

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

1 year

They said, you just have to keep the 12.5% balance on your loan for 3 months, and we will even write you a cheque for the interest cost for the 3 months, and we will give you lifetime services, and winter tires.. no brainer for them, but what about the others?

5

3

287

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

1 month

Guide: "How to draw down a $200k RESP over a 4 year university program" Let's say you front loaded your RESP, and years later you have $200k.... how do you get the money out? Thread👇

33

48

282

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

21 days

A nice perk if you’ve bundled your home and auto with TD insurance… you have access to unlimited legal advice from actual lawyers via phone.

19

12

278

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

1 year

I wonder how those 8 or 9 are doing now? I wonder if they could maintain their car payments, mortgage payments, credit card payments.. whatever else is going on in their life to make the vehicle purchase so stressed to begin with.

5

3

270

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

1 year

As a RBC customer (as an example) your cash in your high interest 'e-savings' account is currently 1.5%... another option, if you open a RBC Direct account you can keep your cash inside RBC's RBF2010 investment savings account which currently pays 4.05% and has $0 trading fees.

49

17

214

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

1 month

Just what you want to see on April 30th.

34

7

209

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

2 months

How to create a tax trap in 3 easy steps: 1 - Create new AMT rules that become effective 01/01/2024 2 - Announce a change to cap gains inclusion rate effective 06/25/2024 3 - Wait for taxpayer to sell assets to avoid 2/3 inclusion rate while jumping headfirst into an AMT trap

20

39

200

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

1 month

If you had $50k available to invest, and you just had a child, what's the optimal way to fund your RESP to maximize it’s long term growth potential? This thread is a fairly deep look at that 👇 There are two typical answers to this question, but the real answer is deeper.

14

28

197

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

1 year

The salesman says... if instead of paying cash, you put $2,500 as a down payment, and the rest of the vehicle would be a loan. But, 87.5% of the original loan balance would be repaid immediately with a bank draft leaving only 12.5% on the loan outstanding...

5

178

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

2 months

To summarize: The Gov't is helping you borrow more & then pay it off slower. Canadians will pay more interest over their lifetime, making it harder to retire. This is inflationary on housing in general, and makes it harder for those without large RRSPs to compete when shopping.

15

22

169

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

1 year

This would allow the dealership to "get another 8 or 9 people into vehicles who wouldn't have qualified on their own".

1

3

161

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

2 months

In case it's helpful I just prepared this summary.

10

26

163

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

1 year

If you had $50k available to invest, and you just had a child, what's the optimal way to fund your RESP? This 👇 is a fairly deep look at that. I found myself in a discussion about this last night. There are two typical answers to this question, but the real answer is deeper.

16

32

153

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

2 months

The information from my capital gains tax charts has been used in this @globeandmail article. That's one of the best feelings - seeing your efforts become multiplied by a source like the G&M which can reach and help so many people.

7

12

153

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

2 months

Increase to Capital Gains Inclusion rate - from 50% to 66.67% - only applies on gains in excess of $250,000. Also, only applies after June 25, 2024 <-- nice to allow some planning for affected individuals. Details:

42

25

148

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

22 days

No spin, just facts. Tax on $70,000 salary vs. tax on $800,000 salary. This shows actual taxes paid in dollar terms and percentages by province. It also shows the marginal rate of tax on the next dollar earned, whether it's regular income or from capital gains.

36

13

133

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

4 months

I made a Venn diagram of TFSA, RRSP, and FHSA accounts, because why not? 🤷‍♂️😂 Did I miss anything?

23

20

127

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

2 months

The fact that governments can change tax rules when they want, potentially years or decades after you have been navigating the current rules.... is the very reason I still recommend Spousal RRSPs. Some argue that spousal RRSPs don't have a place anymore because after 65 you can

14

8

125

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

2 months

Lots of changes today, but after reading a lot of comments there's one thing that hasn't changed. People generally like it when others have to pay taxes that don't apply to them.

10

8

120

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

2 months

Things I don’t like: 1 - when people use the content you create without stating the source (honestly, it’s not hard) 2 - when people state tax facts that are incorrect. 3 - when people state tax facts that are incorrect while plagiarizing at the same time.

Frank Domenic

@TheFrankDomenic

2 months

How much will you personally be affected by Trudeau's new tax when you get your inheritance? The answer will probably surprise you... If you don't know how taxes work #canada #cdnpoli #capitalgains #capitalgainstax #canadian #canadianpolitics #canadiantiktok #canadapolitics

43

157

422

10

3

113

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

1 year

Did you know that as a senior in Canada, there are numerous Universities that will allow you to enroll in post-secondary courses.... for free? Talk about a great perk for those who may have retired and now have more time for learning! Here's a quick thread on that 👇

5

24

105

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

7 months

Remember - consider opening a FHSA this year even if you can't fund it. By doing so you will be able to contribute more to the account next year, due to carrying forward the amount you could have contributed this year, but didn't. No account = no contribution carryforward.

9

14

104

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

8 months

With this morning's CPI announcement we now have the entire dataset required to determine many figures for the year 2024. The index rate for 2024 will be 4.7%. Important planning thread below, with 2024 amounts for TFSA, OAS Clawback, LCGE, Tax Brackets, and more....👇

6

16

101

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

1 year

So.... this isn't official, but, we're going to have $7,000 of new TFSA contribution room in 2024. This is based on y/y CPI figures ending Sept 2023... and it's basically a guarantee, unless something VERY unexpected happens to bring year over year CPI number WAY down by the end

8

10

101

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

1 month

Phone call today: Him: "I am almost 70 and trying to understand OAS clawback. I found your OAS article, but the CRA agents I have spoken to (3 of them) all said that the OAS is fully clawed back at ~$148k even if I start my OAS at 70." Me: "(sigh).... The CRA agents are

11

12

102

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

1 month

I just realized that I made the RESP into a home down payment savings account for your minor child, and it’s maybe the most Canadian thing I’ve ever posted.

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

1 month

Guide: "How to draw down a $200k RESP over a 4 year university program" Let's say you front loaded your RESP, and years later you have $200k.... how do you get the money out? Thread👇

33

48

282

5

2

99

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

2 months

Summary of Canada

8

22

98

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

1 month

Sometimes reframing dollars into time can be useful for reflection. Let's face it, a lot of high income earners work very hard, and they work long hours. They make sacrifices. If someone puts in an extra 5 hours of work in the evening/night, after everyone else has gone home,

10

12

97

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

22 days

Can someone please explain the difference in the figures in the Trudeau capital gains video from a few days ago to the numbers I just looked up on StatsCan? $11-12 Million vs ~$3M? 🤔

11

25

97

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

5 months

@spittinchiclets Same energy.

1

0

94

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

2 months

If you have exposure to capital gains that will be impacted by the new 66.67% inclusion rate... should you sell them before June 25? It depends on what you plan to do with them otherwise. How long would it be, do you think, until you would have otherwise sold them? If you would

18

15

94

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

2 months

You can't make this up. First UHT, now Bare trusts. So close to the deadline. once the work and stress is almost over.. Wow.. just wow.

Canada Revenue Agency

@CanRevAgency

2 months

📣 Alert! Bare trusts are exempt from trust reporting requirements for 2023. Find out more ➡️ #CdnTax

52

34

52

19

14

91

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

3 months

Step 1 in filing a T3 for a bare trust involves registering your trust and applying for a Trust tax number. This is EXACTLY how you do that.

11

12

89

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

22 days

Ok I got the answer on this for those who care. The chart in the Trudeau video took the combined total net worth of the top 20% (5th quintile). The actual data behind the approx $11 million figure is actually ~$11 million but multiplied by a factor of 1,000,000. It’s not a per

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

22 days

Can someone please explain the difference in the figures in the Trudeau capital gains video from a few days ago to the numbers I just looked up on StatsCan? $11-12 Million vs ~$3M? 🤔

11

25

97

13

14

88

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

2 months

Everyone - don't just run out and sell everything before June 25. There are lots of factors in this: How much will the extra tax actually be? When would you have sold it otherwise? If you accelerate the sale, you are also accelerating the tax payment. By paying tax earlier

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

2 months

Increase to Capital Gains Inclusion rate - from 50% to 66.67% - only applies on gains in excess of $250,000. Also, only applies after June 25, 2024 <-- nice to allow some planning for affected individuals. Details:

42

25

148

11

10

86

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

2 months

My daughter snuck this note into my pants pocket this morning and told me I wasn’t allowed to look at it until I got to the office. #thebest ❤️

10

1

87

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

2 months

Tax Hack. Sell assets in Ontario and then move to Nunavut before the end of the calendar year. Follow me for more genius tips.

12

8

86

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

2 months

I need a drink.

10

0

83

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

22 days

If you are making RRSP contributions in the near term for 2024... just be careful as to where you are getting your info on how much you can contribute. Here's an example for someone who's 2023 tax return was assessed in late April.

8

12

83

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

5 months

Check out my article which includes: - Explainer on RRSP, TFSA, and FHSA accounts - Planning ideas for each account - Explainer on tax deductions and tax credits and how they differ - Key tax information for 2024… …All wrapped into one concise article!

Tax planning quick facts and common strategies

www.cwbwealth.com

7

13

81

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

8 months

Here is a chart that I’ve put together that compares many of the features and requirements for both the Home Buyers' Plan (HBP) and the FHSA. You can see that there are many similarities, but also, a few things that are different.

4

15

80

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

1 year

One of the most significant tax deductions is also one of the most commonly missed. Moving Expenses.

5

10

80

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

1 year

I'm not sure who needs to hear this, but if you want to, you can mentally disassociate educational EXPENSES from RESP assets. Yes, you need your child to go to a qualifying post secondary program to optimally extract the money out of the RESP, but.. 👇

3

11

71

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

2 months

Random thought - If you have a spousal RRSP, and contributions have been ongoing by the 'high income spouse' - you can partially avoid the '3 year attribution rule' by converting it to a Spousal RRIF... as the minimum payments from a Spousal RRIF are not subject to the 3-year

10

9

75

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

2 months

Sunday tax planning tip. A couple has evenly contributed to a non-registered investment acct and now are legitimately allocating the income and capital gains 50% on to each of their tax returns. What if one retires earlier, or, they are in different tax brackets? Read on 👇

8

6

73

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

2 months

I've updated my comparison chart of the Home Buyers' Plan (HBP) and the First Home Savings Account (FHSA) to incorporate the changes announced this week, which will be effective on April 16th. Let me know if you have any questions.

9

7

73

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

9 days

Financial planning is so much more than investing... since Monday I've... - talked to a client about them selling their house and moving to a new home (I was able to answer the financial questions quickly, and the rest of the discussion was more about the emotions of moving and

7

2

74

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

2 months

As a financial planning and tax guy…. that was one of the most mentally stimulating weeks I can remember. Putting to the side for a minute whether or not I agree with the Budget.. that was kind of fun.

14

1

72

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

2 months

Ontario

5

18

73

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

3 months

People age 65 and over really shouldn't be making RRSP withdrawals. They should be making RRIF withdrawals.

7

6

71

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

27 days

The tax advice that nobody asked for: Gifts from a child (adult or otherwise) to a mother are not taxable to the mother nor deductible to the child and there is no attribution back to the child.

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

27 days

Happy Mother’s Day to all the moms out there!

0

1

13

8

7

71

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

3 months

I just recorded a video showing (start to finish) me completing a T3 and Schedule 15 for a Bare Trust. PS - it's my first YouTube video. I'm not trying to be super polished here... just getting timely information out. I hope this helps those who need it!

Completing a T3 and Schedule 15 for Bare Trusts

This is a step by step guide explaining how to complete a T3 return and Schedule 15 for bare trusts in Canada.PDF Form Links:T3 Return PDF: https://www.canad...

www.youtube.com

5

9

69

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

2 months

PSA re: the new HBP limit of $60,000. If you are anticipating a home purchase in the very near term - read this to avoid a big mistake. The HBP has a 90 day rule. This means that any amounts withdrawn from your RRSP via the HBP must have been inside your RRSP for at least 90

8

15

71

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

2 months

Impact on personal capital gains tax changes Effective June 25, 2024 Ontario Residents

5

18

69

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

9 months

I said it earlier this year... but now I have done the math to back it up... the new TFSA contribution room for 2024 will be $7,000. Indisputably.

6

10

69

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

2 months

Writing an article for a national publication has silently been a goal of mine for years. So, it's with a great amount of pride that I can share today my first ever special for the @globeandmail . Thanks and gratitude to both @deannegage and @marktburgess for the opportunity!

The Globe and Mail

@globeandmail

2 months

Why younger retirees who need to access their retirement savings should set up a RRIF

5

6

20

15

9

68

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

4 months

Ever hear this? “I’m a high income earner and I hate RRSPs! The deferred tax just keeps growing! Gov’t bad, etc” I disagree, but let’s think for a moment. Even if you don’t want to use a RRSP to save for retirement, don’t discount how it can help the naysayers.” Example 👇

7

11

67

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

3 years

@BarDown @NHLonNBCSports This is fine because Kucherov was on IR during the regular season so he doesn’t count against the 5 player cap

2

3

63

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

5 months

CPP enhancement is good. It makes people mad, but it’s still good. Sorry.

22

2

66

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

8 months

Some common sense words from Tiff Macklem on the impact that government spending has on inflation. “It would be helpful if governments considered the inflationary impacts of their spending decisions”

6

64

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

2 months

@AMPcrypt I wrote this description last fall (never published it)... it largely still holds up. You may have heard in the news that Alternative Minimum Tax (AMT) is changing in Canada. In this article we will explain what AMT is and how it is calculated, who should be most concerned, and

12

11

64

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

5 months

@spittinchiclets

4

2

62

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

1 year

Start your RESP savings as early as possible... but for the procrastinators out there, if you want to max out the free money from the Gov't you need to start no later than the year your child turns 10.

15

8

63

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

8 months

My mortgage doesn't renew until 2025. But I know that if rates stay where they are today, given the balance that my mortgage will be at that time and my remaining amortization, my payment will go up by 26%. How much will your payment go up by? If you don't know, you should.

21

9

61

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

4 months

You might know that you can carry forward your 2023 FHSA tax deduction to a future year if you believe it will be worth more to you in the future, but you might wonder… how (exactly) do I do that? 👇

2

9

60

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

1 month

Raise your hand if you’re a potential entrepreneur 🙋‍♂️ but currently a salaried employee 🙋‍♀️ and have a spouse in a lower tax bracket 🙋 This is a spousal RRSP thread for you.

2

6

60

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

4 months

One of the meme's from the FHSA presentation I gave today.

5

2

59

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

9 days

Any advisors out there looking for a new fee grid? You’re welcome in advance.

Mark McGrath

@MarkMcGrathCFP

10 days

These are our fees. That's it, that's the tweet.

48

4

153

6

2

58

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

2 months

1

8

57

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

1 year

Is it seriously that hard to just give someone appropriate credit for their work instead of pretending that you've done the hard lifting? And his name is Mark McGrath, let's have a little respect. @MarkMcGrathCFP thought you'd be interested.

11

5

53

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

5 months

I'm biased, but this is likely the most comprehensive image on Old Age Security (OAS) clawback ranges you'll find. Anywhere.

6

9

55

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

7 months

Recently over on LinkedIn @rcarrick asked a question to the crowd about Old Age Security (OAS). I'll share the question here and my reply below for anyone who is interested.

2

4

55

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

2 months

Impact on capital gains tax changes Effective June 25, 2024 Alberta Residents

26

24

54

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

16 days

Estate planning hot take: Successor appointments (for RRIF and FHSA accounts) - while almost universally recommended as the superior option between spouses - are actually quite poor from an estate ‘tax planning’ perspective. Read on 👇

3

7

54

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

1 year

Three days ago I made a poll, asking the following question: "If you could buy $32,000 of RRSP contribution room, how much would you pay for it? Less than $4,000? Or more than $4,000?" Today we are going to explore that, in depth.

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

1 year

If you could buy $32,000 of RRSP contribution room, how much would you pay for it? There’s a reason I’m asking which will be revealed in a thread later on.

17

3

13

3

10

52

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

6 months

ALDA: Advanced life Deferred Annuity They were introduced in the 2019 Budget, and the legislation was passed in 2021, but not a single insurer provided it.... until today. Desjardins announced it is bringing this to market. So what is it? 👇

2

11

53

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

1 year

Completed my first Norbert's Gambit. It was easy... definitely going to be my go to method for exchanging CAD to USD from now on.

11

1

53

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

2 months

Thread 1 of 2 - Real Estate and the PRE This is for the people with a vacation home who might sell it before June 25 👇

4

7

52

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

1 year

@smith06_e The silence is deafening

1

0

51

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

2 months

This is new... "Canadian Entrepreneurs' Incentive" Good news for small business owners. $2 million of capital gains on the sale of eligible small business shares will be eligible for a capital gains inclusion rate equal to one half of the current inclusion rate. So going

6

8

50

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

2 months

Lifetime Capital Gains Exemption Currently $1,016,836 for 2024 and subject to annual inflation adjustments. Effective June 25, 2024 this is being increased to $1.25 Million. (NO INFLATION ADJUSTMENT IN 2025) Then indexation of the LCGE to resume in 2026. Ok so here's what

5

8

50

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

1 month

Man, am I ever interested to see if the application of the capital gains reserve will be kept consistent with the current flow of Schedule 3. A capital gains reserve is an option when you’ve sold an asset but don’t get paid fully until a following year. The portion of the gain

11

8

49

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

4 months

@NHL This is cool.

1

0

46

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

1 year

There are many opinions on the FHSA. Some discount it entirely - “$40k is not going to make a difference” Some think it is powerful - “This is too good to be true?” Lets try and think about the value of the account in a pragmatic way. What is the value of the FHSA? 🧵 👇

11

12

48

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

9 months

I wish the Disability Tax Credit had a different name. I've found that the nomenclature dissuades some from applying. In their mind they don't have a disability, even if there is some impairment. If named differently, I bet more eligible people would be willing to apply.

14

0

48

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

2 months

@returnofaj

2

1

48

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

5 months

Flight delayed more than three hours? You need to know about the Air Passenger Protection Regulations (APPR). My family and I recently had a flight delay getting home from the USA. The flight was originally delayed by about 4 hrs (it turned out to be about 6).... (continued

8

12

47

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

11 months

My CCB calculator has been updated for July 2023 to Jun 2024 and can be found here for anyone who is interested:

8

9

46

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

1 year

I've seen this wonderful graphic on the left, below, a few times now, so I thought I would put together the same analysis as it relates to Canada, on the right. This is apples and oranges everyone.

3

10

52

Aaron Hector, R.F.P., CFP, TEP

@AaronHectorCFP

7 months

#UHT When a new tax gets enacted, and the 1st filing deadline has to be pushed back by 6 months, not once, but TWICE... to give tax filers more time to understand how to file the form and even whether or not they have to file.. that kind of tells you something about the policy.

2

4

45