In the chaotic times we are currently living in, many Canadians are isolating at home and practicing social distancing. With the extra time at home we are all experiencing it is a great time to spend more quality time with your children, tackle any home improvement items you've been procrastinating about, catch up on some reading, or maybe binge watch your favourite TV shows. It is also a great time to review your personal finances. Here are a few items we would recommend tackling if you have some extra time on your hands:
BUDGETS
Sadly, there are a lot of Canadians being laid off work and business owners having to close temporarily or reduce production in some capacity. It is an ideal time to review your spending, income, and debt. By simply writing everything down it will give you a better visual of money coming in and money going out, and will allow yourself to making necessary changes to your spending habits. People should also familiarize themselves with the various stimulus and relief programs from the government being offered recently to individuals and businesses affected due to Covid-19. (https://www.canada.ca/en/department-finance/news/2020/03/canadas-covid-19-economic-response-plan-support-for-canadians-and-businesses.html)
WILLS AND BENEFICIARIES
There's nothing quite like a global pandemic to make one's mortality seem all the more real. If you don't have a will I would recommend creating one, especially if own any substantial amount of assets, are married, or have children. If you have one, great! This may be the time to update that will, especially if recently married, divorced, or had children. If your will is likely to be fairly simple, you could save yourself a trip to the lawyers office and set one up online for a fraction of the cost. Willful is an online site that Canadians can use to set one up for as little as $99 and can be completed in less than 20 minutes. (https://willful.co/?utm_source=hasoffersaff1171&utm_medium=affiliate&utm_term=YT&utm_content=&utm_campaign=115)
Updating beneficiaries on your RRSP's, TFSA's, and your life insurance policies should also be considered to meet specific estate goals and to potentially reduce/defer taxes and reduce probate fees upon passing.
LIFE INSURANCE
This may be a good time to review your life insurance needs and implement additional coverage if someone depends on you financially. With the emerging technology recently many Canadians can receive an insurance quote, complete an application, and get approved from the comfort of their own couch with e-applications and e-signatures. Try this easy to use calculator if you're looking for a quick life insurance premium quote to give you a decent idea of what it might cost. (https://inalco.premium-calculator.ca)
FILE YOUR TAXES
The usual deadline for individuals to file your taxes has been April 30, but because of the timing and significant financial impact of Covid-19, the government has deferred that date to June 1 and has deferred payment of any tax owing until Aug 31. If you know you're getting a refund then definitely file sooner than later and get YOUR money back in your hands rather than letting the government hold on to it any longer. If you know you are going to owe taxes, just file your taxes anyways. Chances are the economy and life will get busier as summer approaches and you may not have as much time to do your taxes later on. Plus, as mentioned, you do not have to pay anything until Aug 31 if you wanted to defer tax payment.
ONLINE BANKING AND BILL PAYMENTS
All banking institutions allow account holders online access these days, so with social distancing continuing it is important to familiarize yourself with your online banking for managing your day to day finances. Most bill payments can be enrolled as e-statements as well and can also be paid via your online banking. This will not only help with physical distancing, but will save a few trees along the way too.
SIGN-UP FOR MY CRA ACCOUNT
Canada Revenue Agency has recently allowed Canadians to securely sign up online for individuals to review and manage their tax affairs quickly and conveniently. Have your Notice of Assessments, recent tax returns, RRSP and TFSA contribution room, and benefits information available to you at your fingertips at all times. Click on the video for instructions on how to register.
All of these personal finance tasks can all be completed from the comfort of your couch, Lazy Boy recliner, or even from outside on your patio furniture paired with a nice cold beverage...and you do not even have to put pants on if you don't want to! Technology with smart phones, tablets, emails, video conferencing, and regulators allowances of e-signatures has made all of these items achievable from home. Here are a few great FREE apps you can download on your smartphones or tablets that we like to help you become technologically savvy:
Signing documents: DocuSign, HelloSign
Scanning documents: TurboScan
Video Conferencing: Zoom, FaceTime, Microsoft Teams
Stay safe everyone!
-Marty Metz, CFP, CLU
**Metz Financial does not receive any kickbacks or referrals from any recommended app or website!
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