Personal finance is always a hot topic, especially in Canada, where the financial scene is constantly evolving. Whether it’s new laws, regulations, or economic shifts, it can be hard to keep up with the latest news. The good news is that we’ve gathered up-to-date information and insights on the latest personal finance news in Canada to help you stay in the know.
1. DIGITAL CURRENCY
One of the biggest topics in finance right now is digital currency. Recently, Canada’s central bank has been exploring the potential for launching its own digital currency. Known as a ‘central bank digital currency’ (CBDC), this electronic form of cash could provide several benefits over physical cash and traditional bank deposits.
2. HOUSING MARKET
Another topic that is always topical in personal finance is the housing market. Across Canada, house prices are soaring, with the average price for a home in Canada rising by 25% YoY in February 2021. Despite this crazy momentum, the Canadian housing market is expected to continue on this upward trend in 2021, although concerns about affordability persist.
3. RETIREMENT PLANNING
Retirement planning is always a hot topic, and it’s especially relevant for Canadians since many typically contribute to RRSP’s before the March 1st deadline. Plus, with the continued uncertainty made by the pandemic, the importance of having a well-funded retirement pot has never been more critical. While there is no fool-proof retirement strategy, there are practical steps that people can take to ensure long-term financial stability.
4. INVESTMENT TRENDS
Investment trends are continually evolving, and Canada has seen some impressive growth in recent years. In 2020, stock investing surged across the country, with people seeing it as a viable option for long-term financial planning. Moreover, some alternative investments, such as real estate investment trusts (REITs) and cryptocurrency, are coming into the spotlight as more people look for ways to diversify their portfolios. Although these types of investments come with high risk, they could have a place in a more extensive investment strategy.
5. CHANGES IN TAX LAW
Finally, tax law changes are often announced, and it can be hard to keep track of them. For example, the Canada Revenue Agency (CRA) recently announced changes to capital gains taxes. Beginning in 2021, individuals will be required to report the sale of all properties, even if no tax is currently payable. Additionally, individuals will no longer be allowed to claim the Principal Residence Exemption for homes that were not well-inhabited. Keeping track of these changes is crucial when preparing personal tax returns.
CONCLUSION
Following the latest personal finance news in Canada is essential for understanding the current economic climate and making informed financial decisions. As digital currency, housing market trends, retirement planning, investment opportunities, and tax law changes unfold, gaining a deep understanding of the latest news can help Canadians make informed decisions to support their financial planning.
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