Home Buyers Plan

Home Buyers Plan, how to participate

Home buyers plan is for you, as a first-time home buyer or builder

You intend to occupy the qualifying home as your principal place of residence.

You can withdraw a single amount or make a series of withdrawals throughout the same year and January of the following year, as long as the total of your withdrawals is not more than $20,000.

If you buy the home with your spouse or common-law partner, each can withdraw up to $20,000 from his or her "RRSP" Registered Retirement Savings Plan making a total of $40,000
A qualifying home is a housing unit located in Canada.

This includes existing homes and those under constructed

Single-family homes, semi-detached homes, townhouses, mobile homes, condominium units, and apartments in duplexes, triplexes, fourplexes, or apartment buildings all qualify.

A share in a co-operative housing corporation that entitles you to possess, and gives you an equity interest in a housing unit located in Canada, also qualifies.

When do you have to repay?

Your first repayment is due the second year following the year in which you made your withdrawals.

You have up to 15 years to repay the amount that you withdrew from your "RRSP" Registered Retirement Savings Plan

You have to repay a minimum of 1/15 of the total amount each year until the full amount is repaid to your RRSP

Every year, you will receive a Home Buyers' Plan (HBP) Statement of Account with your Notice of Assessment or Reassessment.

This statement will show the total amount of withdrawals, the amount you have repaid and to date and the balance

Home Buyers Plan is a great help for first time home buyer

Tax Free Savings Account

Tax Free Savings Account '' TFSA" will become available in January 01, 2009

Tax Free Savings Account . . . ? for a lifetime of savings . . . free from taxes . . .

TFSA contributions are made from after tax dollars, withdrawals are tax free at anytime for any purpose

The amount withdrawn can be put back in, at a later date without reducing your contribution room.

Contributions to a spouse’s TFSA will be allowed and TFSA assets can be transferred to a spouse upon death

Canadians aged 18 and older can save up to $5,000 every year

Interest, investment income including capital gains, are tax-free, even when withdrawn.

The difference between RRSP and TFSA as highlight below:

Contributions to an RRSP are deductible and reduce your income for tax purposes, whereas,
your TFSA savings will not be deductible.

Withdrawals from an RRSP are added to your income and taxed at current tax rates, whereas, your TFSA withdrawals and growth within your account will not be tax

Tax Free Savings Account are tax-free savings, so take advantage of it asap

RRSP: Registered Retirement Savings Plan

RRSP: Registered Retirement Savings Plan is a Canadian Governments Program for retirement saving

RRSP: Registered Retirement Savings Plan is deduction for your tax planning

This Retirement Savings Plan or RSP is an account that provides tax benefits for saving for retirement in Canada.

RSP in the Income Tax Act allows a person to shelter financial property from income taxes.

RSPs help you reduce taxes: Contributions to RSP, up to limits described below, may be deducted from income before calculating income tax

A deduction limit is calculated as 18% of a person's earned income from the previous tax year, minus any "pension adjustment", up to a specified maximum.

This specified maximum is as shown in the table below:

* 2008 $20,000
* 2009 $21,000
* 2010 $22,000

After 2010 the RSP contribution limit will be indexed to the annual increase in the average wage.

A person with a marginal tax bracket of 40%, means that in an investment of $1000 in RSP, they would receive $400 back from your withholding taxes

Any RSP deductions not taken in a tax year are carried forward indefinitely to future tax years.

Every year, tax payer receives a Notice of (Re)Assessment from the Canada Revenue Agency, indicating their new RSP deduction limit.

Income earned in RSP (interest, corporate dividends, trust distributions, capital gains) is not taxed until money is withdrawn from the registered plan

Money may be withdrawn from an RSP in tax years when one is unemployed or when one is ready to retirement at age 69, it must be either cashed out or matured into a RRIF: Registered Retirement Income Fund

RSP accounts popularly promoted are: savings accounts, GIC: guaranteed investment certificates, stocks, bonds, and mutual funds

Gaining popularity is the Canadian Home Buyers Plan where Canadians can borrow, up to $20,000, tax-free from their RRSP "and another $20,000 from a spousal RSP" making a total of $40,000 towards buying their first residence.

This loan has to be repaid within 15 years after two years of grace.

RRSP or Registered Retirement Savings Plan is a good tax deduction program

Credit Score

Credit score is what . . . ? and what factors influence it
Credit score indicates the risk you represent for lenders.

Scores are from 300 to 900.

High scores on this scale are good. The higher your score, the lower the risk for the lender.

Your score at times, also determines the interest rate by your banks.

What factors influence your score?

Credit‐reporting agencies and lenders use a mathematical formula to figure out your score, which takes into account various factors described in your credit report, such as:

Your payment history:
(Do you carry over a balance on your credit card from month to month? Have you ever missed a payment on any of your debts?)


Any collection or bankruptcy recorded against you:
(Has a collection agency had to collect an unpaid bill from you?
Have you even been bankrupt?)

Your outstanding debts:
(What is the limit on your credit card?
Is your spending close to your credit limit?)

Your account history:
(How long have you had credit?)

The number of recent inquiries made about your credit report:
(How many times has someone asked about your credit report?
How often do you apply for credit cards?)

The type of credit you are using:
(Do you only have credit cards, or do you have a mix of credit cards and loans?)


How? . . . "you can improve your score"

Always pay your bills on time.

Try to pay your bills in full by the due date. If you aren’t able to do this, pay at least the
required minimum amount shown on your monthly credit card statement.

Try to pay your debts as quickly as possible.

Don’t go over the credit limit on your credit card.

Reduce the number of credit applications you make.

Credit score improvement means making sure you have a credit history.

Critical Illness

Critical illness coverage

Critical illness insurance is now more accessible than ever!

Our Transition critical-illness insurance product is now more accessible thanks to the introduction of simplified issue. This new option is an entryway for critical-illness insurance because it provides simple, affordable coverage and the premiums are guaranteed for the duration of the coverage. Transition Simplified Issue is easy to enroll in and is available in T-10 and T-75 modules, with a maximum coverage up to $100,000.

At the time of issue, you can choose a Return of Premiums upon Death or Flexible Return Premiums rider where you can recover all premiums paid.

However, the most important advantage of Transition Simplified Issue is coverage, without a medical exam, for the four main illnesses with the greatest number of claims in Canada, as well as for the Industrial Alliance group. They are:

* Stroke

* Cancer

* Heart Attack

* Coronary Artery Bypass Surgery

By concentrating on these four illnesses, which represent 86% of all claim requests for critical illness, we can offer more competitive premiums for your clientèles.

Life Settlements

Life settlements, provide a sensible exit strategy for unwanted or under performing life insurance policies with an immediate cash settlement

Life settlement is when a policy owner sells the policy to a third party for more than the cash value offered by the life insurance company.

The purchaser becomes the new beneficiary of the policy on death or at maturation, and is responsible for all subsequent premium payments.

With life insurance there are two options, to either let the life insurance policy lapse or cash in the policy for its surrender value. Most insurance agents are aware of only these two options, and it's written in the general contract provision.

In this situation (life insurance settlements) a policy owners can access fair market value for their policies, rather than accepting the lower cash surrender value from the issuing life insurance company.

Life insurance settlements allow you to assign or sell your life insurance policy for an up-front, larger cash payment.

Life settlements are an option for high-net-worth policy owners age 60 or older, this concept has gained attention from high-profile policy holders in the States

Life Insurance Settlements

Life Insurance Settlements is the sale, assignment, transfer of ownership of a life insurance policy to a third party

Life insurance settlements or viatical settlement is the sale of a life insurance policy by the policy owner before the policy matures.

When such a sale is conducted, the price will be less than the face amount of the policy but usually more than premiums paid or more than current cash surrender value. The sale creates immediate cash settlement.

Generally, viatical settlements involve insured individuals with a life expectancy of less than two years.

In United States, without state-subsidized health care and high health care costs, this is practical, because of the high health insurance premiums that severely sick people have to face. This industry grew in popularity in the States in the 80s

When you have a policy holder with terminal illness, or if you are caring for some love ones who is terminally ill. The thought of time and money (expensive health care and care giver's costs) will make you think of the life insurance policy, and what it's cash value will do. This will be a situation for life settlements.

Viatical settlement is similar to buying a bond with a negative coupon and an uncertain redemption date. The return depends on the seller's life expectancy and when he or she dies.

Life insurance settlements, which are similar settlements but involve insureds with longer life expectancies (two to fifteen years).

Investment Planning

Investment planning for retirement

Investment planning is looking at L-O-N-G TERM because equity markets trend moves upwards

Systematic, consistency investment is the best way to follow

When you are young, "dollar cost averaging" is the best because of consistency of investment

The final step is, planning for investment will take you all the way to your retirement

Start with Your Financial Health?

How healthy are you financially?

Are you financially fit, or are there areas of your financial picture that are looking unhealthy?

The scary fact is that most people refuse to know where they stand financially.

Many of us go to the doctor for a checkup, or take our car in to get serviced to ensure that everything is ok but don’t exercise the same level of precaution with our finances.

Everyone should perform an annual financial checkup to review how they’ve done financially over the past twelve months and make sure they’re still headed in the right direction.

Here’s how to perform a self‐checkup of your finances:

The first step in your financial checkup is to set your financial goals.

Know what your financial goals are, re‐evaluate them yearly, to make sure they’re still relevant.

An important step when creating or revising goals is to write them down.

That way, when you’re performing your financial checkup next year you can look back on your written goals to chart your progress and note areas where you’ve fallen short.

Evaluate Changes in Your Personal Situation

Have you gone through any life changes recently or do you anticipate any major changes in the near future?

A job change, getting married, having a baby, divorce, retiring, buying a house, or moving can significantly alter your cash‐flow and your lifestyle.

You may need to adapt your budget, your spending, your savings, and your investments according to these life changes.

Having time to plan for these changes in advance will make the transition much smoother.

You may also find that your financial goals have changed and will need to alter your plan for those changes.

Investment planning is consistency in follow-up

Insurance Planning

Insurance Planning is 1st. step


Proper insurance planning is first of all protect what you already have

For the rich, life insurance provides for a foundation of intergenerational wealth.

Evaluate your protection of assets, have enough life insurance to cover the worst possible scenario, in this way, what you build is left behind for your love ones

Life insurance is also purchased by those interested in achieving specific business, like partnership insurance, business retirement income, and or estate-transfer goals


For most people, it is protection of the greatest asset of all ‐ Income Earning Ability.

Many of us buy life insurance because we want to make sure that our loved ones, especially dependents, remain financially secure after we die.

Income replacement is the No. 1 reason people buy life insurance.

Before purchasing a life insurance policy, consider your financial situation and the standard of living you want to maintain for your love ones, spouse and kids.

Taking into consideration like, who will be responsible for your final medical bills and funeral costs ?

Would your family have to relocate or otherwise change their standard of living after losing your income?

Let's look at the worst situation, this way, "What if I die yesterday"

"How much will my family need, to pay all the bills that keeps coming"

"Bills never stop coming, even if you die yesterday, and you know that for a fact"

Look into the financial needs of the family members, such as: children's expenses, income for the surviving spouse, mortgage and other debt payoffs, college education funds and an additional emergency fund.

We recommend a review of your life insurance whenever you experience a major life event such as a change in income or assets, marriage, divorce, the birth or adoption of a child, or a major purchase such as a house or business.

Make sure you also protect your greatest asset with long-term disability insurance

The basis for insurance is to care for the living when the event of death occurs.

It is peace of mind when we know we can still care for our love ones even though we are not around due to unforeseen circumstance.

Insurances planning is mandatory for every caring parents

Tax Planning

Tax Planning is critical to your financial health

Tax planning puts more money in your pockets and makes you smile from chick to chick

Engaging in tax evasion which is "hiding income" or claiming false deductions which is "claiming for something you don't have". These things are illegal and could lead to fines and jail.

You can save taxes by planning early in the year, the amount of taxes you pay has to do with your knowledge of tax reducing strategies.

A good tax plan uses the tax laws to decrease your taxes, and accumulate more money in your pocket

Your planning objective must be to increase disposable income by reducing taxes .

You must learn and understand the tax system, so you can take advantage to legally reduce your taxes

You are entitled to the benefits, the tax system made available to you

Fear of making the wrong deductions is the reason why we do not take advantage of the tax strategies

To eliminate your fear, the worst is that the audit department could do is to make correction on your deduction, and keep you informed.

The worst you can lose in such a case would be a little interest on overdue tax if you are 'disallowed a particular deduction', remember nothing ventured, nothing gained.

As long as you are not hiding income or claiming expenses that don't exist, you're not doing anything wrong or illegal.

Every year, thousands of Canadians used tax systems to reduce their taxes

Taxes play a major role in every Canadian’s lives.

All the methods we present to you is to help you legally avoid paying excess tax.

Remember tax avoidance is legal, while tax evasion is not.

Tax planning must be made a top priority in your life

Mortgage and Debts

Mortgage and debts elimination planning


Mortgage and debts are epidemic in Canada as well as in other countries around the world.

Just look at the media and the thousands of advertisements that try to sell us “stuff” everyday. This constant bombardment of messages tells us we need to purchase and consume “Stuff.”

We borrow and sign purchase agreements. We use our Credit Cards to the maximum. Always getting into more debts.

Now, let's see how Mortgage debt is one of the most significant debts a person will endure in their lifetime if they decide to become a home owner. Conventional mortgages are structured for the benefits of the lender. (It is not in the best interest of the lender: to show you how to pay off your mortgage faster.)

With proper planning the we can significantly reduce the amount of interest a person pays in his mortgage.

But before we can do the restructuring, we have to understand the "Money Game"
Like any game that you play, it is always more enjoyable if you know & understand the rules.

The Money Game is just one game none of us can afford to lose. Unfortunately, it's the game we do not understand the rules.

The objective of the lenders will always be to make the most money possible form you, the borrower. This is evident in the enormous profits that the financial institutions earn on an annual basis.

When people go to buy their home and take out a mortgage the lenders are more than happy to lend the money to credit worthy individuals.

The lenders never show you how to pay off your mortgage faster? It cuts into their profits.

The strategies they provide the public are simple, restrictions on how much you can prepay your mortgage debt or how much extra money you can put towards your mortgage without penalties.

If you don't follow the rules they charge you extra interest and penalties.

Mortgage and debts are what we need to take a serious look at and restructure to your benefits.

WHY Wealth Mortgage

WHY Wealth Mortgage...
. . . . because it's your money

WHY wealth mortgage is where OUR PARTNERSHIP BEGINS

At WHY Wealth Management Inc., we work together with you as partners to tackle on of life’s greatest debts, the mortgage. We show you how to retire your mortgage debt earlier, while turning your mortgage interest into a tax deduction. Imagine how your life would be, when you are free from your mortgage obligations

Learn the “Secrets” that the lending institutions don’t want you to know!


Do you ever wonder why it takes so long to pay off your mortgage?

Most people are led to believe that their home is their greatest asset. This is far from the truth. When you purchase your home, the mortgage that you take on your home becomes your greatest liability. The home only becomes an asset when you have finished paying it off.

How much does your dream home really cost you?

Did you know that on a typical 25 year mortgage, you end up paying 2-3 times your home purchase price. If that wasn’t bad enough, the money you use to make your mortgage payments was done with after-tax dollars. This means that you had to earn money, pay taxes, then what ever is left over is yours to use to pay your mortgage payments. That $400,000 dream home you just bought ends up costing you $1.3 million in before tax dollars.

The Key to becoming mortgage free!

The only way to retire your mortgage earlier is to have more of your payments go directly to paying off the principle amount. The longer you carry the mortgage balance, the more time the lending institution has to charge you interest. The WHY Wealth Mortgage Plan... is your blueprint to retiring your mortgage debt faster. It will significantly reduce the amount of interest that you pay on your mortgage. We show you how to make your money work 24/7 towards paying off your mortgage


Who is looking out for your best interest?

It is never in the financial institution’s best interest to show you how to retire your mortgage debt earlier. It’s simple, the longer it takes for you to pay off your mortgage, the more interest they earn. Why do you think they penalize you or put restrictions on how much & how early you can pay off your mortgage loan. These penalties & restrictions are just tactics used to keep you in the dark so that they can make more money from the interest charges. Why would the lending institutions teach you the secrets that would reduce their profits.


Who is the real winner?

Most of your payments in the initial years of your mortgage goes directly to paying the interest on your mortgage loan. On a typical 25 year mortgage, it is not until the 14th year that half of your payments go towards principle & the other half towards interest. The lending institutions have made most of their money in the early years already.

WHY Wealth Mortgage provides you, with the tools & knowledge to help you pay off your mortgage faster!

WHY Wealth Management

WHY Wealth Management
. . . because it's your money

WHY Wealth Management
. . . because it's your success for personal money management

Learn how to in money success