Shawn Fetter is ecstatic to finally be in the new Comox Valley office of Alitis Investment Counsel, chatting with colleagues and meeting with clients face-to-face at 1103-695 Aspen Rd.
“It’s a really welcoming space from the moment you walk in. I love meeting with clients in person, and catching up with my co-workers for those unscheduled conversations about finances or just our lives,” says Fetter, an Alitis Investment Counsel Associate Portfolio Manager and Alitis Wealth Planning Insurance Advisor.
While the venue may change from Microsoft Teams or Zoom to the local coffee shop to the welcoming new office, Fetter says questions from new clients are often very similar.
“They often want to know which savings account to contribute to first: the RRSP, the TFSA, and now the new tax-free First Home Savings Account or ‘FHSA.’ The answer for everyone will be different, based on your risk tolerance, savings goals, and time horizon — someone saving to buy their first home within the next five years should have a drastically different portfolio than someone saving for retirement in 30 years.”
One thing that’s true for everyone though, is that you shouldn’t feel restricted by the word ‘savings’ in the names for RRSP, TFSA and FHSA.
“These accounts are not just for cash or GICs. Any investment product can be put inside and grow tax free. And to really grow your wealth long term, it is better to view your needs as investing rather than just saving.”
Savvy investor’s guide to 2023:
- Tax preparation starts now: The filing and payment deadline for 2022 individual tax returns is May 1, 2023, as Apr. 30 is a Sunday. Expect to receive T4 and T5 tax slips in February and T3s in March. Fetter says it’s a good idea to collect documents and information now, and file early if you can. “Workers at the CRA have been without a contract for more than a year, and their union intends to conduct strike votes from Jan. 31 to Apr. 7. File your taxes early if you can, to improve your chances of getting a speedy return.”
- EI and CPP contributions are slightly increased: Employees will see an increase in the amount of CPP and EI deducted from each paycheque in 2023 — CPP is increasing from 5.70 per cent to 5.95 per cent, and EI contribution rates increase from 1.58 per cent to 1.63 per cent. For employees contributing the maximum amount, these increases mean an extra $304 compared to 2022.
- Take advantage of savings contribution room: The TFSA contribution limit for 2023 is $6,500, and this new limit means that someone who has never contributed to a TFSA and has been eligible since its inception will have a cumulative contribution room of $88,000. The registered retirement savings plan dollar limit for 2023 is $30,780, up from $29,210 in 2022. Note that the amount you can contribute to your RRSP is limited to 18 per cent of your 2022 earned income. If you still have RRSP contribution room, remember that any contribution in first 60 days of 2023 can be used to offset taxes in either 2022 or 2023. Consult your financial advisor to calculate the best strategy for your needs and goals. The maximum annual contribution to the new FHSA is $8,000 to a total of $40,000, and contributions are tax deductible — another opportunity for tax savings, for those with flexibility in their accounts.
Find Alitis Investment Counsel in Campbell River at 101-909 Island Highway, in Victoria at 1480 Fort St., in the Comox Valley at 1103-695 Aspen Rd, and at alitis.ca. For more information, call 250-287-4933 or email info@alitis.ca.
