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Happy Financial New Year

Yes, another year has already begun and there is a raft of financial stuff you should be thinking about (right now), for the coming financial new year.

My Personal Opinion On Resolutions
My Personal Opinion On Resolutions

What kind of things? You know my great love for lists, so let’s start the year with one:

  1. You will have more TFSA room, so you should be able to deposit more money into yourTFSA. This year your can add $5500 more to it, and the sooner you put it in, the sooner it has a chance to grow as well.
    • If you are adding new funds to your TFSA and you are using a Couch Potato Index portfolio, or you have specific percentages by sector, now might be a good time to use these extra funds to bring the portfolio back into balance too.
  2. Rebalance your portfolios might be a good idea overall, given the cogitations and undulations of the markets over the past little while, now is the time to “take profits” and “take advantage of good prices” if you will allow me those car salesman-ish type expressions.
  3. Check over your current insurance coverage. You need to know when all your insurance comes due, how much you are paying, whether the rates have gone up and maybe write it all down (just in case). You don’t want to be searching for insurance coverage after a major incident. Now might be the time to start thinking about shopping around for better rates as well (before you are about to renew).
    • An excellent example is if you are turning 50 this year, now is the time to start shopping around for better term insurance rates, and maybe time to start thinking about disability insurance as well.
    • Note there is a handy life insurance quote tool on the right side of this —> give it a whirl.
  4. Expecting a new child this year? Have one and haven’t started their RESP yet? Start now, in the name of Sky Rocketing Tuition rates, start now, or you are dooming your child to a huge student debt load (or you can not give a flying hoot and let them pay for it themselves, take your choice).
  5. It’s RRSP time, how do I know? It’s a trick question, it is always RRSP time (and TFSA time for that matter). Before the insanity of February, go put some money in your RRSP now, and give it a month head start on growth.

How to Start?

How is that financial plan going? Now is the time to have a look at it, and see if you need to change it for this year, or just keep cruising along. It didn’t work for you at all last year? Time to start a new plan, try some new ideas, and see if they work better for you. You don’t have a plan? Excellent time to start a new financial plan (just like RRSP time, financial planning time is right now).

New year, new plan, and let’s get going on this.

Feel Free to Comment

  1. Good reminder, a few of them like TFSA and rebalancing of the portfolio I remembered but the one I didn’t think about was insurance. Brilliant idea to review this.

  2. I have just finished up rebalancing my portfolio and am following the core principles of the Couch Potato Strategy. Except I am 100% and no bonds. Is the Couch Potato Strategy or a similar version of it what you follow yourself?

    Have a good one,

    Mr. Captain Cash

    1. A mostly couch potato hybrid system, where I do have 1 ugly secret portfolio where I still hold specific dividend paying securities (BMO, TD, PFE, and 1 or two others). 🎰

  3. Yep. TFSA and RESP are going in. RRSP has to wait until we get our tax assessment back since the CRA always comes up with a different number than I would expect. (PAs are a pain.) It’s not much anyway because they think the DC pension plan is valuable. (Ha!)

    Just a reminder for readers: if you are behind in your RESPs you can put in up to double the annual amount (so up to $5000 per child if you have missed a year for that child) and get up to $1000 in CESG per year. Check the details on the Service Canada site. (If you have always made the full contribution each year you can NOT double up your CESG.)

  4. Just transferred the full amount for TFSA and RESP on Jan 2nd. Now just need to buy some stocks. Mrs. T and I just did our usual year end budget and net worth review. Looking forward to what 2015 has in store for us.

  5. Funny enough I just rebalanced my TFSA this morning before I read this post.

    I did most of my year end accounting a few days ago but I need to get around to updating my net worth.

    Unfortunately I expect my expenses to go up this year as it seems that everything in general has gone up and my cost of living raise probably won’t cover it.

  6. We actually just posted our 2014 Budget Review which details what changes we will make to our finances in 2015. You are smart to motivate your readers to think about this because so many people fail to plan. Now that we have a son I want to make sure we keep making the right money moves. What changes have you made to your budget or financial plan for 2015? Great post.

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