loans,convertibledebt or lines of credit. It is essentially calculated as the interest rate times the outstanding principal amount of the debt. Interest expense on the income statement
Your credit score is calculated by two main credit bureaus in Canada: Equifax and TransUnion, using proprietary algorithms as well as scoring models that may be provided by companies like the Fair Issac Corporation, or FICO. Borrowers with credit scores in the “good,”“very good,” and “...
How credit card minimum payments are calculated The minimum payment is either a fixed amount — often $10 — or a percentage of the balance, whichever is greater. Some cards require you to pay just a percentage of your credit card balance— typically between 1% to 3%. For example, if you...
Dividends may sound attractive, but they don’t provide RRSP contribution room. This is because they do not count as earned income. It may also be wise to evaluate whether a corporation is necessary. You may not experience many benefits from incorporation until your income reaches over $100k...
Heather: to be precise about it, I guess you’d need to consider your annual spending to be “how many dollars would I need to take out of my RRSP, to have my needs covered after tax”. In practice, I find that the tax rate is negligible for Mustache-level retirement incomes. Plus...
–you accrue TFSA contribution room every year regardless of income so you can [today 2015] put $5.5K/yr of any RRSP withdrawals into your TFSA to shelter its growth. This money is never taxed again and does not impact any income tested old age benefits. –you will pay capital gains tax...