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Aaron Hector, R.F.P., CFP, TEP Profile picture
Aaron Hector, R.F.P., CFP, TEP
@AaronHectorCFP
Passion for personal finance, innovative ideas & the well being of my clients. Opinions/posts are my own. PWA @ CWB Wealth, VP & Symposium Chair @ IAFP
Jul 23 • 42 tweets • 9 min read
A thread on planning ahead and considering both your current and future effective tax rates when making FHSA contributions.

(also useful for thinking about RRSP contributions!)

🧵👇 With many personal financial topics, planning ahead is important.

With the FHSA, this is especially true.

But you might think that with the FHSA, the only plan of significance is your housing plan, and while important, that's only one piece of the puzzle.
May 8 • 26 tweets • 5 min read
Guide:
"How to draw down a $200k RESP over a 4 year university program"

Let's say you front loaded your RESP, and years later you have $200k.... how do you get the money out?
Thread👇 Image If you are wondering what front loading a RESP is, then check it out here:

Now we are looking at the other side.... You've had success in your child's RESP, how do you get the money out without penalties?
May 5 • 29 tweets • 6 min read
If you had $50k available to invest, and you just had a child, what's the optimal way to fund your RESP to maximize it’s long term growth potential?

This thread is a fairly deep look at that 👇

There are two typical answers to this question, but the real answer is deeper. Image First, it’s important to understand a couple of basics about how RESPs work.
Apr 17 • 15 tweets • 4 min read
Master Thread - Capital Gains Tax Changes

Below are the facts that relate to individuals, broken out for each province and territory.

This assumes top marginal tax rates across the board.

Changes effective June 25, 2024 Summary of Canada Image
Apr 7 • 24 tweets • 5 min read
Okay - let's level up this tax planning.

This is a long thread, but it's a good one. I promise.

First - reacquaint yourself with the below thread if you haven't already read it, then read it... then come back and read the below advanced tax planning thread. I'm now going to build a hypothetical portfolio.

It has some cash, a stock (could be a fund or ETF) that has a large unrealized gain (Gain Co), and a stock that has a large unrealized loss (Loss Co). Image
May 16, 2023 • 8 tweets • 2 min read
Crazy story.

This past week I was talking with someone who (in the late fall of 2021) was buying a new vehicle from a dealership in Calgary. They negotiated the price, and then at the end said they were going to pay cash.

This is where it gets weird.... 👇 The salesman says... if instead of paying cash, you put $2,500 as a down payment, and the rest of the vehicle would be a loan. But, 87.5% of the original loan balance would be repaid immediately with a bank draft leaving only 12.5% on the loan outstanding...
May 15, 2023 • 12 tweets • 3 min read
Not specifically how to buy, but rather, things Canadians should consider when buying US property..... I wrote this a while back but it's not online anymore. See screen caps below: Image
Apr 21, 2023 • 21 tweets • 5 min read
There are many opinions on the FHSA.

Some discount it entirely - “$40k is not going to make a difference”

Some think it is powerful - “This is too good to be true?”

Lets try and think about the value of the account in a pragmatic way. What is the value of the FHSA? 🧵 👇 This post was inspired by my review of the Q4-2022 Housing Affordability Monitor, from National Bank, which was published on March 7, 2023.

Here is a link to the document: nbc.ca/content/dam/bn…
Apr 19, 2023 • 8 tweets • 2 min read
I recently posted a thread about how seniors can often enroll in University and have their tuition waived.

That thread was more well received than I had anticipated. Which is great! That inspired me to expand on a similar topic....

Have you ever heard of... MOOCs? 👇 If signing up for an in-person post-secondary program doesn't suit your lifestyle, but you crave that high level educational content, then you can look online.
Apr 18, 2023 • 8 tweets • 2 min read
Did you know that as a senior in Canada, there are numerous Universities that will allow you to enroll in post-secondary courses.... for free?

Talk about a great perk for those who may have retired and now have more time for learning!

Here's a quick thread on that 👇 The decision to waive tuition costs is made by the university, as opposed to regulation passed by any government body.

The university also dictates the rules. Here are some observations that I've made while looking into this:
Apr 14, 2023 • 45 tweets • 8 min read
Three days ago I made a poll, asking the following question:

"If you could buy $32,000 of RRSP contribution room, how much would you pay for it? Less than $4,000? Or more than $4,000?"

Today we are going to explore that, in depth.

Can you attach a monetary value to RRSP contribution room?

It's a hard question to answer.

If you ask what the value of a tax deduction is, most often the answer will be about your effective or marginal tax bracket. The reduction in current year tax payable, if you will.
Apr 12, 2023 • 12 tweets • 3 min read
One of the most significant tax deductions is also one of the most commonly missed.

Moving Expenses. If you have moved at least 40 km closer to your place of work, then your moving expenses can be claimed as a tax deduction.

What can you claim?
Apr 8, 2023 • 32 tweets • 6 min read
#FHSA Advanced Planning Concepts
Double-Dipping Deductions... Exploring a perfectly legal loophole by using both the HBP and FHSA together.
(Vince McMahon’s head is exploding - Meme Tier 5) Image For the diehards who have read my posts all week - thank you! It’s time for the last one in this series.

For today, you’ll need a little bit of a primer on the Home Buyers’ Plan (HBP) and what is same or different from the FHSA.
Apr 7, 2023 • 18 tweets • 4 min read
#FHSA Advanced Planning Concepts
Income splitting with the FHSA
(Vince McMahon is about to fall out of his chair - Meme Tier 4) Image Good Friday everyone!

Check out my earlier threads this week if you missed them!

One thing about the FHSA that is interesting is that there are quite a few scenarios where people who have no interest in home ownership can still benefit from having a FHSA account.
Apr 6, 2023 • 15 tweets • 3 min read
#FHSA Advanced Planning Concepts

How parents who can’t afford to help their children buy a home.... can help their children buy a home

(Vince McMahon's breathing intensifies - Meme Tier 3) Image Are you ready for your third lesson?

If you missed either Tuesday or Wednesday’s posts, make sure you check them out. Again, some of the lessons we’ve learned will be useful today.

Tuesday:

Wednesday:
Apr 5, 2023 • 40 tweets • 8 min read
#FHSA Advanced Planning Concepts
The debt-financed FHSA strategy
(Vince McMahon's starting to get amped up - Meme Tier 2) Image Are you ready for your second lesson? If you missed yesterday’s post, make sure you check out. Some of the lessons there are going to be useful today.
Apr 4, 2023 • 39 tweets • 8 min read
#FHSA Advanced Planning Concepts
Planning ahead and considering both your current and future effective tax rates
(Vince McMahon is intrigued - Meme Tier 1) Image With many personal financial topics, planning ahead is important.

With the FHSA, this is especially true.

But you might think that with the FHSA, the only plan of significance is your housing plan, and while important, that's only one piece of the puzzle.