Rick and Taylor opened up TFSA's and will be depositing $13,000 into each over the next few months.These are their only TFSA's and no previous contributions have ever been madeThey will be seeking advice on how to invest inside the TFSA's.Rick's most recent NOA states unused RRSP room of $104,000.Taylor's most recent NOA states unused RRSP room of $64,000.Rick has a DB pension plan that is based on his last 3 year's average earnings with a 2% pay-out per year of pensionable service.Rick's 2021 PA = $10,819.Taylor's Group RRSP plan Rick's RRSP Plan Taylor's Spousal RRSP Rick and Taylor's Net Worth StatementLong-Term Assets $1,577,005Total Assets $1,607,835Total Long-Term Liabilties $726,566Total Liabilities $730,056 Are there any tax advantages they can gain by restructuring areas of their finances (More contributions to their RRSPs)

Registered Retirement Savings Plans (RRSPs) are Canadian investment accounts designed to help…

Answered: Are there any tax advantages they can…

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Rick and Taylor opened up TFSA's and will be depositing $13,000 into each over the next few months.

These are their only TFSA's and no previous contributions have ever been made
They will be seeking advice on how to invest inside the TFSA's.
Rick's most recent NOA states unused RRSP room of $104,000.
Taylor's most recent NOA states unused RRSP room of $64,000.
Rick has a DB pension plan that is based on his last 3 year's average earnings with a 2% pay-out per year of pensionable service.
Rick's 2021 PA = $10,819.

Taylor's Group RRSP plan

Rick's RRSP Plan

Taylor's Spousal RRSP

Rick and Taylor's Net Worth Statement

Long-Term Assets $1,577,005

Total Assets $1,607,835

Total Long-Term Liabilties $726,566

Total Liabilities $730,056

Are there any tax advantages they can gain by restructuring areas of their finances (More contributions to their RRSPs)

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