Friday, July 24, 2015

TFSA or RRSP? Do you know the difference?

Although they’ve been around since 2009, Tax-Free Savings Accounts (TFSAs) still raise a lot of questions among Canadians. How well do you understand TFSAs? Can you tell the difference between a TFSA and an RRSP? Here’s a quick quiz to test your knowledge.
      For each of the five statements below, say whether they apply to a TFSA or an RRSP: 
              1)     Contributions are tax deductible 
              2)     There is no age limit on contributions
              3)     Contribution room is restored after withdrawals
              4)     The amount withdrawn is added to your taxable income
              5)     Investment income and returns remain tax free

Answers: 1) RRSP 2) TFSA 3) TFSA 4) RRSP 5) TFSA
How did you score? If you got five out of five, congratulations! You have a solid handle on the basics of RRSPs and TFSAs. If you got some answers wrong, we can help. Contact the credit union and we can give you more information on all of your retirement and savings options.

Three easy tips for removing a summer’s worth of dirt from your car

That summer road trip may have left you with a bunch of lasting memories, but odds are your car is covered in reminders of a different sort. Hundreds of kilometres of highway travel can leave a car covered in bugs, road tar, dirt and grime. Here are some easy, inexpensive ways to get your car looking like new, using products you probably already have kicking around the house.
         1)  Remove bugs quickly and easily with dryer sheets.
Find an empty spray bottle. Add a little water and a dryer sheet. Let the dryer sheet soak in the water for roughly 15 minutes. Then spray the water on the bug-grime and wipe gently with another dryer sheet. It should come right off!
         2)  Clean your headlights with toothpaste.
Dirty headlights are unsightly — and dangerous. Rub them with ordinary toothpaste and you’ll have them sparkling like new.
         3)   Remove road tar with WD-40.
With just soap and water, you’ll need to apply a lot of elbow grease to remove that tar. But spraying on a little WD-40 should make the job much easier, and it’s completely safe on paint.

The Pros and Cons of leasing vs. buying

So you’ve decided it’s time for a new car and now you’re faced with that age-old question: lease or buy?

  •       You own the vehicle

  •      You can sell or trade in the vehicle whenever you want

  •       You can drive as much as you want
  •        You can modify the vehicle if you want


  •      Your monthly payments are usually higher because you’re paying off the entire cost of the vehicle
  •     When it comes time to get a new vehicle you have to deal with selling or trading in your existing car


  •    Monthly lease payments are usually lower than the monthly costs of a loan to purchase a car

  •    When your lease is up and it’s time for a new vehicle, you essentially just return the car
  •      You don’t have to worry about depreciation


  •         You don’t own the vehicle
  •         You have to limit your mileage to the terms of the lease, or pay extra charges
  •         At the end of the lease you must return the vehicle
  •         Wear and tear on the vehicle may result in extra charges when the lease is up
  •         You can’t modify the vehicle

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