Time to share some great articles that I found over the week.
- The Financial Blogger has hosted the 140th Carnival of Personal Finance. This issue was a bit more creative than usual as he used the "Prison Break" theme. MDJ submitted a "best prisoners" (and controversial) article "Ask the Readers: Talking about Money".
- John Chow reports how to efficiently setup a corporation to reduce income taxes. The basic premise being to keep all the income within the corp (taxed @ 17% for < $400k) and make all withdrawals as dividend payments to the shareholders. Providing that the private corporation dividend income is your sole source of income, shareholders can make up to around $30k tax free (depending on province). Remember that the gross up for a private corp is 25% instead of 45% for public corporations.
- Canadian Capitalist has the perfect article for the current RRSP season (deadline is Feb 29, 2008) called "Tips for your RRSP Contribution". My favorite tip is "Park your contribution in a money market fund". This will allow you to take advantage of the contribution tax break, but give you some time (and a little growth) while deciding how to invest the money.
- I've written about index funds vs ETF's before, more specifically "When to switch to ETF's". I came to the conclusion that it's best to stick with cheap index mutual funds when starting out, but switching to ETF's when the balance gets a bit larger (around $25k). Quest for Four Pillars has written a similar article which agrees with my conclusion but includes more details and calculations.
- Moolanomy has a creative article the ABC of Wealth Building. The game was for readers to post a financial tip for every letter on the Alphabet. Check out the article for the tip that I submitted!
- Thicken My Wallet wrote a great article "5 Investment Products that I Avoid". Included in the article includes PPN's, segregated funds, wrap funds, time shares and shady tax shelters.
That should keep you busy for a while! See you Monday!If you would like to read more articles like this, you can sign up for my free weekly money tips newsletter below (we will never spam you).