Canadians look to save rather than spend
WON BIG ON GAMESTOP? HERE'S WHAT IT MEANS FOR YOUR TAXES
The GameStop rally led many people to make their first foray into do-it-yourself investing. But as one Toronto-based investor told The Canadian Press, taxes were "probably the last thing in anyone's mind" amid that market frenzy. The tax implications for Canadians who decided to take the plunge and entered the world of stock trading amid the Reddit-fueled rally could be wide-ranging, CP adds.
THINK BIG PICTURE THIS RRSP SEASON
Many Canadians who plan to contribute to their RRSPs are doing so only because they'll receive a tax refund in the spring. But there's no better time to think about the second "R" in registered retirement savings plan than during RRSP season, according to Personal Finance Columnist Dale Jackson. Canadians should be focusing on their long-term financial goals ahead of the Mar. 1 contribution deadline, Jackson writes.
CANADIANS CALL FOR DEBT FORGIVENESS
A debate over debt forgiveness is ramping up in Canada as people continue to suffer financially because of the pandemic. A majority of Canadians say they would support debt forgiveness if it's done for valid reasons, according to a Bromwich + Smith survey published earlier this week. However, CTV's Chief Financial Commentator Pattie-Lovett Reid said a lender's willingness to forgive debt might not be there in certain circumstances.
CANADIANS MIGHT JUST SIT ON THAT CASH HOARD POST-PANDEMIC
Canadians are likely to keep adding to the estimated $150 billion in amassed savings they've accrued during the pandemic, according to a survey by Nanos Research Group. Nearly seven in 10 Canadians expect to continue saving over the next year, risking a potential drag on the country’s economic recovery. However, Ed Devlin, founder of Devlin Capital and the former head of PIMCO Investment Management's Canadian operation, told Bloomberg News Canadians could be in for a “very sharp uptick” in spending once the economy reopens.
HOW COVID HAS IMPACTED FINANCIAL PLANNING FOR YOUNGER CANADIANS
The pandemic has thrown a wrench in the plans of some Canadians in their 20s. Personal finance expert and blogger Jessica Moorhouse said COVID-19 has been a huge wake-up call for some young adults, underscoring the importance of an emergency savings fund. She added the pandemic-related uncertainty highlights why a solid financial plan is important to have developed early-on in one's life.
“Make sure you’re paying down debt. If you’re holding onto a balance it’s going to be very difficult to get ahead when you’re constantly paying interest over time.”
- Barry Choi, personal finance expert and author of MoneyWeHave.com on the value of keeping a close eye on your credit card balance.
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