Answers
The money questions Canadians actually ask, answered in plain English
Every article here answers one question people type into Google, ask on Reddit or post in a Facebook group. Short answer first, then the detail, then what to do next. Written by the licensed advisors at Zenith Advisory in Saskatoon.
New to Canada
I just moved to Canada. What should I set up first with my money?
In this order: SIN and bank account; protection for anyone who depends on your income; a TFSA; then RRSP as Canadian income creates room; then an RESP…
Read the answer →Should I put money in my RRSP or my TFSA first?
If your income today is higher than it will be in retirement, the RRSP deduction is worth more and usually comes first. If your income is modest, you'…
Read the answer →Can I get life insurance in Canada if I'm new or on a work permit?
Yes. Permanent residents can apply for life, disability and critical illness insurance right away. Many insurers also accept work-permit holders, some…
Read the answer →Do my parents need insurance to visit me in Canada on a super visa?
Yes. For a super visa, the government requires private medical insurance of at least $100,000 CAD, valid for at least one year from the date of entry,…
Read the answer →I send money home every month. How do I still build savings in Canada?
Treat the money you send home as a fixed expense in your plan, not an afterthought. Then protect your income first (because two families depend on it)…
Read the answer →Young families
How much life insurance do I actually need?
Add up what your family would need if your income stopped: the mortgage and debts, enough income for the years your children are dependent, their educ…
Read the answer →Is the life insurance from my job enough?
Usually not. Group coverage is typically one or two times salary, which a family with a mortgage can spend in under three years. It ends when you leav…
Read the answer →What's the difference between disability insurance and critical illness insurance?
Disability insurance replaces part of your monthly income if illness or injury stops you working, for as long as you're off, potentially to age 65. Cr…
Read the answer →Should I take the mortgage insurance my bank offered or buy my own life insurance?
For most people, your own term life insurance is better. Bank mortgage insurance pays the bank, not your family; the coverage shrinks as your balance …
Read the answer →Do I need a will in Canada? What happens if I die without one?
Yes, especially if you have children or assets in more than one country. Without a will, provincial law decides how your estate is divided and a court…
Read the answer →What is probate, and how do I keep my family from paying it?
Probate is the court process that confirms a will is valid and gives the executor authority to act. It costs a fee in most provinces (Saskatchewan's i…
Read the answer →Retirement
Is it too late to start saving for retirement at 40 (or 45, or 50)?
No. It means saving a higher percentage of your income than someone who started at 25, and using the right accounts in the right order. A 40-year-old …
Read the answer →How much money do I need to retire in Canada?
It depends on what you'll spend, not on a universal figure. Estimate your yearly retirement spending (many people land at 60 to 70% of pre-retirement …
Read the answer →Can my corporation fund my retirement instead of an RRSP?
Yes, and for many incorporated professionals it's the most powerful option. Leaving money in the corporation means it's taxed at the small business ra…
Read the answer →What is guaranteed income for life and should I have some?
It's an arrangement where you hand over part of your savings in exchange for a monthly payment that continues for as long as you live, regardless of m…
Read the answer →Your child's education
How does the RESP government grant work, and how much do I get?
The federal government adds 20% to whatever you contribute to a child's RESP, up to $500 per child per year, to a lifetime maximum of $7,200. Contribu…
Read the answer →What happens to the RESP if my child doesn't go to university?
You don't lose your money. The RESP covers college, trade school and apprenticeships as well as university, and can stay open for 36 years in case you…
Read the answer →Business owners
Should I pay myself salary or dividends from my corporation?
There's no permanent right answer. Salary is deductible to the corporation and builds RRSP room and CPP, but costs CPP contributions. Dividends don't …
Read the answer →What is the $50,000 passive income rule and why does my accountant keep mentioning it?
Once passive investment income inside your corporation (interest, dividends, rent, taxable capital gains) exceeds $50,000 in a year, your small busine…
Read the answer →If my business partner died, what happens to their share, and do we need insurance for that?
Without a plan, their share passes to their estate, which usually means their spouse becomes your business partner, or demands to be bought out at a m…
Read the answer →How do I take money out of my corporation when I retire?
Usually through a planned combination: dividends paid out gradually at low personal rates, income from an Individual Pension Plan if you set one up, t…
Read the answer →Doctors & medical corporations
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