These are the questions Canadian families and business owners ask us most, answered the way we'd answer them across your kitchen table.
A financial planner looks at your whole picture — income, savings, debts, insurance, taxes and family goals — and builds a plan that ties them together. Most people already have pieces in place: a group plan at work, an RRSP at the bank, a mortgage. Our job is to make those pieces work as one, so nothing is doubled up and nothing important is missing.
No. Some of the most valuable advice happens early — a young family choosing the right life insurance, or a first-time buyer deciding between an FHSA and an RRSP. Good decisions made early tend to matter more than big decisions made late.
You don't pay us anything for our advice or our time. We're paid by the insurance companies and investment providers whose products you choose, usually through commissions built into those products. That means we can spend as long as you need on your plan without a bill at the end — and we'll always tell you how we're paid on anything we recommend.
Bring your most recent tax Notice of Assessment, statements for any RRSP, TFSA, pension or investment accounts, your mortgage details, and any insurance policies (including group benefits from work). If you don't have everything, come anyway — we'll fill in the gaps together.
At least once a year, and any time life changes: marriage, a new baby, a home purchase, a job change, starting a business, or the loss of a family member. A plan that isn't updated slowly stops fitting your life.
An RRSP gives you a tax deduction today and you pay tax when you take the money out. A TFSA gives you no deduction today, but everything you take out later is tax-free. A simple rule of thumb: if your income is higher now than it will be in retirement, the RRSP usually wins; if it's lower now, or about the same, the TFSA often wins. Many families use both.
The 2026 TFSA limit is $7,000. If you were 18 or older in 2009 and have never contributed, your total room is $109,000. Unused room carries forward, and anything you withdraw is added back to your room on January 1 of the next year. Your exact room is shown in your CRA My Account.
You can contribute 18% of last year's earned income, up to $33,810 for 2026, plus any unused room from earlier years, minus any pension adjustment from a workplace plan. Your personal limit is printed on your Notice of Assessment. Over-contributing by more than $2,000 costs a 1% per month penalty, so check before you deposit.
Pay off high-interest debt like credit cards first — no investment reliably beats a guaranteed 20% saving. For lower-rate debt like a mortgage, it depends on your rate, your tax bracket and how you feel about debt. A blended approach often works: steady investing plus extra mortgage payments.
The First Home Savings Account lets first-time buyers save up to $8,000 a year, to a lifetime maximum of $40,000. Contributions are tax-deductible like an RRSP, and withdrawals for a qualifying first home are tax-free like a TFSA — the best of both. If you might buy a home in the next 15 years, open one now; room only starts building once the account exists.
An RESP is a savings account for a child's education after high school. The government adds a 20% grant (the Canada Education Savings Grant) on the first $2,500 you contribute each year — up to $500 per child per year, and $7,200 per child in total. Lower-income families may qualify for extra grants and the Canada Learning Bond.
Enough to reach your goals, and not so much that you'd sell in a panic during a bad year. Money you need within three years usually belongs somewhere stable. Money for goals 10 or more years away can generally handle more ups and downs. The right mix depends on your timeline, your income stability and your temperament.
Segregated funds are investment funds offered by insurance companies. They work like mutual funds but add insurance features: a guarantee of 75% to 100% of your deposits at maturity or death, the ability to name a beneficiary so the money can bypass probate, and potential protection from creditors. Those features cost a bit more, so they suit people who value the guarantees — business owners and estate planners especially.
There's no magic number — it depends on the life you want. A common starting point is 60% to 70% of your pre-retirement income, but a retiree with no mortgage and modest travel plans may need far less. The better question is: how much will you spend each year, and how much of that will CPP, OAS and any pension cover? Your savings fill the gap.
You can start CPP anytime between 60 and 70. Starting at 60 cuts your payment by 36% for life; waiting until 70 raises it by 42%. If you're healthy, have other savings to live on, and longevity runs in your family, waiting often pays off. If you need the income or your health is a concern, taking it earlier can make sense.
The maximum CPP at age 65 in 2026 is $1,507.65 a month, but most people receive much less — the average new retiree gets roughly half of that. The maximum requires about 39 years of contributing at the top level. Your personal estimate is in your My Service Canada Account.
Old Age Security is reduced by 15 cents for every dollar of net income above a threshold — $93,454 of 2025 income for payments from July 2026 to June 2027. Ways to reduce it include drawing down RRSPs earlier, splitting pension income with a spouse, using TFSA withdrawals (which don't count as income), and holding investments inside a corporation or life insurance policy.
You can delay OAS up to age 70 and earn 0.6% more per month, a 36% increase at 70. Delaying makes most sense if you're still working or your income would trigger the clawback in your late 60s anyway.
By December 31 of the year you turn 71, your RRSP must be converted to a RRIF, used to buy an annuity, or cashed out (which is fully taxable — rarely a good idea). A RRIF requires a minimum withdrawal each year, which rises as you age. You can base the minimum on a younger spouse's age to keep withdrawals lower.
It's one of the biggest decisions you'll make, and it can't be undone. A monthly defined benefit pension gives guaranteed income for life, often with survivor benefits and inflation protection. The commuted value gives you control and flexibility, plus anything left over goes to your estate — but you take on the investment risk, and part of it may be taxable right away. Get a proper comparison before you sign.
A defined benefit (DB) plan promises a set monthly income in retirement based on your salary and years of service — the employer carries the risk. A defined contribution (DC) plan builds an account from your and your employer's contributions, and what you get depends on how it's invested — you carry the risk.
Yes. You can allocate up to 50% of eligible pension income to your spouse or common-law partner on your tax returns. At 65 and over, that includes RRIF and annuity income. Splitting can lower your family's total tax and help both of you stay under the OAS clawback threshold.
A Locked-In Retirement Account holds pension money you moved from a former employer's plan. It works like an RRSP, but the money is locked in for retirement income. You'll usually convert it to a Life Income Fund (LIF) later, which has both minimum and maximum yearly withdrawals.
Enough to let your family keep living the life you planned if you weren't here. A practical way to estimate it: add up your debts (including the mortgage), the cost of your children's education, final expenses, and enough to replace your income for the years your family would need it. Then subtract savings and any group coverage you already have. For many families, the answer is 10 to 15 times their income — but your number should be calculated, not guessed.
Term insurance covers you for a set period — 10, 20 or 30 years — and is the most affordable way to protect a young family or a mortgage. Permanent insurance (whole life or universal life) lasts your whole life and builds cash value. Think of term as renting protection for the years you need it most, and permanent as owning it for needs that never go away, like estate taxes or leaving a legacy.
Usually not. Group life coverage is often only one or two times your salary, and it typically ends when you leave the job — sometimes when you need it most. Treat it as a bonus, not your plan.
No. Life insurance death benefits are paid tax-free to the named beneficiary. When a beneficiary is named, the money also goes directly to them, outside your estate, so it avoids probate fees and delays.
Critical illness insurance pays you a tax-free lump sum if you're diagnosed with a covered condition such as cancer, heart attack or stroke, and survive a short waiting period. You can use the money for anything — time off work, treatment, a spouse taking leave to help. Life insurance protects your family if you die; critical illness protects you if you live.
If you rely on your paycheque, yes. Your ability to earn an income is likely your biggest financial asset, and you're more likely to become disabled during your working years than to die. Disability insurance replaces part of your income if illness or injury keeps you from working. Self-employed people and business owners, who usually have no group coverage, need it most.
It's not essential, but it can be valuable. A small permanent policy locks in coverage while your child is healthy, regardless of what happens to their health later, and can build cash value they inherit as adults. Children's critical illness coverage is also worth a look for parents who'd need time off work to care for a sick child.
Often, yes. Many conditions that are well managed still qualify, sometimes at a higher price. There are also simplified and guaranteed-issue policies that ask fewer or no medical questions. Always answer health questions truthfully — hiding something can void the policy when your family needs it.
Often, yes. Premiums paid by your corporation are paid with dollars taxed at the small business rate (roughly 9% to 12% on active business income, depending on your province), instead of personal dollars taxed at your marginal rate, which can be over 50%. When the corporation receives the death benefit, most of it can be paid to your family tax-free through the Capital Dividend Account. Ownership and beneficiary set-up matter a lot, so it should be structured with your accountant.
The CDA is a notional account that tracks certain tax-free amounts a private corporation receives — including the non-taxable half of capital gains and most of a life insurance death benefit. Amounts in the CDA can be paid to Canadian-resident shareholders as tax-free capital dividends. For life insurance, the CDA credit is the death benefit minus the policy's adjusted cost basis, which is why corporate-owned insurance is such an efficient way to move money out of a company at death.
Many business owners have surplus cash sitting in their corporation. Investing it normally creates passive income taxed at high rates, and passive income over $50,000 a year starts shrinking your access to the small business tax rate. A properly designed permanent policy lets that surplus grow tax-sheltered inside the policy, doesn't count toward the passive income limit, and pays out tax-free through the CDA at death. It can also be used later as collateral for a loan.
Key person insurance protects your business if someone essential — often the owner or a top salesperson — dies or becomes seriously ill. The corporation owns the policy and receives the payout, which can cover lost revenue, repay business loans, or fund the search for a replacement.
A buy-sell agreement sets out what happens to a partner's shares if they die, become disabled or leave. Without one, you could end up in business with your partner's spouse or estate. Life and disability insurance are the usual way to fund it, so the money is there exactly when the shares need to be bought.
Salary creates RRSP room and CPP benefits and is deductible to the corporation. Dividends are simpler, involve no payroll, and skip CPP contributions — but build no RRSP room. Many owners use a mix. The right blend depends on your personal cash needs, retirement plans and your corporation's income, so it should be reviewed every year with your accountant.
An IPP is a defined benefit pension plan set up by your corporation for you, often best suited to owners over 40 who pay themselves a T4 salary. It usually allows larger tax-deductible contributions than an RRSP, the costs are deductible to the company, and the assets can have creditor protection.
When you sell shares of a qualifying Canadian small business corporation, you may be able to shelter up to $1,275,000 of the gain from tax in 2026. Your shares have to meet specific tests, so planning years ahead of a sale, often by “purifying” the company of passive assets, is what makes it work.
Yes. Without a will, provincial law decides who gets your assets and who looks after your children — and it may not match what you'd want. In most provinces, for example, a spouse doesn't automatically inherit everything when there are children. A will also lets you choose your executor and guardian, and makes the process faster and less stressful for your family.
A power of attorney lets someone you trust make decisions for you if you can't. Most provinces use two documents: one for your finances and property, and one for your health and personal care (called a personal directive in Alberta, a representation agreement in BC and a protection mandate in Quebec). Without them, your family may need to go to court to manage your affairs — even your spouse.
Probate is the court process that confirms your will and your executor's authority. The cost depends on your province: Alberta caps probate fees at $525, Quebec notarial wills don't need probate at all, while Ontario and British Columbia charge roughly 1.4% to 1.5% on larger estates. Assets with a named beneficiary — like life insurance, segregated funds, RRSPs and TFSAs — generally pass outside the estate and avoid probate in every province.
The main tools are: naming beneficiaries on registered accounts and insurance; leaving assets to a spouse, which defers tax; using life insurance to pay the tax bill instead of selling assets; using multiple wills for private company shares where your province allows it; and making gifts while you're alive. The goal isn't to avoid every dollar of tax — it's to make sure your family isn't forced into bad decisions to pay it.
Canada has no inheritance tax, but the person who dies is treated as if they sold all their assets the day they died. Capital gains on investments, cottages and business shares become taxable, and the full value of RRSPs and RRIFs is added to income — unless they pass to a spouse. The final tax return is often the largest one a person ever files.
Only if you haven't named a beneficiary. With a named beneficiary or successor holder, the account goes straight to that person. For a TFSA, naming your spouse as successor holder lets them take over the account tax-free without using their own room. Check these designations whenever your life changes — an outdated one overrides your will.
Be careful. Joint ownership can expose your assets to your child's creditors or divorce, create tax issues, and cause disputes among siblings. Courts may also presume the child holds the asset in trust for your estate, which can defeat the purpose. There are usually better ways to achieve the same goal.
Trusts are useful when you want to control how and when money is paid out: for young children, a family member with a disability (a Henson trust can protect their provincial disability benefits in many provinces), a blended family, or someone who isn't good with money. They can be set up in your will or during your lifetime.
Life insurance creates tax-free cash at exactly the moment your estate needs it. It can pay the tax on a cottage or business so the family can keep it, equalize an inheritance when one child takes over the business, or leave a gift to charity. Because a named beneficiary receives it directly, it also skips probate.
In most cases, your own term life insurance is the better deal. With bank mortgage insurance, the bank is the beneficiary, the payout shrinks as your mortgage shrinks, and the coverage ends if you switch lenders. With personal life insurance, you own the policy, your family is the beneficiary, the amount stays level, and it moves with you. Your family can then decide whether to pay off the mortgage or use the money elsewhere.
It depends on your mortgage rate, your tax bracket and your peace of mind. If your mortgage rate is higher than what you'd reasonably earn after tax, prepaying wins. If you have unused RRSP or TFSA room and a low rate, investing may come out ahead. Many families do both, and being debt-free by retirement is a goal worth building into the plan either way.
Yes. The Home Buyers' Plan lets first-time buyers withdraw up to $60,000 from their RRSP tax-free to buy a home, and you repay it over 15 years. You can combine it with the FHSA for an even bigger down payment.
Every family's situation is different, and these answers are a starting point, not advice for your situation. If you'd like to talk it through, we're happy to help.
Book a conversationThis page is for general information only and does not constitute tax, legal or investment advice. Figures are for 2026 and subject to change. Please consult a qualified professional before acting. Sources for 2026 figures: Canada Revenue Agency, Service Canada — CPP and OAS.