Homeowners' guide to Savings Accounts: Exploring your options

By Andrew Goetz Financial Advisor, O’Farrell Wealth & Estate Planning | Assante Capital Management Ltd.

As we’ve discussed in a prior article (See https://www.ofarrellwealth.com/post/taxfree-first-time-homesavings-account), the Canadian Government has created an innovative way to save money for first time home buyers. It's called the First Home Savings Account (FHSA) and you are eligible if:

- You are between 18 and 71 years of age

- Are a current tax resident of Canada

- Have not lived in a home you or your partner have owned for the past 4 calendar years

- The objective for opening the account must be to save for a qualifying home in Canada

Individuals can contribute to these accounts to the tune of $8,000 dollars per year and $40,000 over a lifetime. FHSA can be a huge advantage for the average person looking to buy a home. This fund sees “the best of both worlds” meaning that contributions to the FHSA are deductible from your yearly income tax and investment growth within the account is also tax free.

How does this compare to TFSAs and RRSPs?

Well, it's pretty inter-

Intersectionality

esting. Wealth inside your TFSA grows tax free to a maximum contribution of $88,000 lifetime (as of 2023). The problem is you cannot deduct TFSA contributions from your income tax.

From an RRSP perspective, any contributions up to your personal yearly limit can be deducted from your income tax. However, any growth inside the account will be taxed upon withdrawal.

That’s where we get the idea of the newly introduced FHSA being the ideal combination of both worlds. It combines the benefits of a TFSA and an RRSP into one account. Of course, a tool this powerful has drawbacks— the contribution stipulations and limits discussed earlier in the article.

So, the question is, where does one put their money?

These three accounts are designed to work together to provide you with more contribution room, more tax savings, and more opportunities for investment growth. However, the answer is that each person's situation needs to be assessed accordingly.

Are you planning to buy your first home or haven’t owned one in 4 years? You’ll want to reap the benefits of the FHSA. Unfortunately, if you already own a home, you won't be eligible for the FHSA. In that case, an investment strategy that fits your income, risk tolerance, and time frame should be implemented in your RRSP and TFSA accounts.

Investing in a home is one of the biggest financial decisions you'll ever make. With so many options available, it can be overwhelming to fi gure out which path is right for you. That's why it's important to work with a financial advisor who can help you navigate the complex world of home buying and investing. They can help you decide which options are right for your unique financial situation and long-term wealth goals.

We welcome questions so please reach out!

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Andrew Goetz is a Financial Advisor with Assante Capital Management Ltd. The opinions expressed are those of the author and not necessarily those of Assante Capital Management Ltd. Please contact her at 613.258.1997 or visit ofarrellwealth.com to discuss your circumstances prior to acting on the information above. Assante Capital Management Ltd. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada.

by Zara Zrudlo

Intersectionality is a term that has become more common in the past five or so years. It was coined even before that by scholar, writer and activist Kimberlé Crenshaw. While the term is common, there are a lot of conflicting definitions. So, what exactly was Intersectionality intended to mean?

Intersectionality is a way to bring people’s overlapping identities into the light. A person can have multiple identity factors that influence how they experience life based on their race, socioeconomic status, gender, Indigeneity, sexual orientation, age, ethnicity, religion, disability, etc. We can use intersectionality to design better policies and social systems that take into account the entirety of people’s identities. For instance, policies that promote women’s rights are very important; however, they may not help a gay, Japanese woman with a disability. That policy would only address the female part of a person’s identity, it wouldn’t combat the ableism, homophobia and asiaphobia that person experiences. Therefore, the policy wouldn’t reach and aid them as much.

Let’s use a Black wom- an applying for a job as an example. She doesn’t receive the job even though she has twice the qualifications that the other applicants do. She asks the company about it, wanting to know why. They simply tell her that she isn’t qualified enough, which doesn’t make sense. While she is there, talking to the company, she gets a look at the employees. There are a ton of white women, and a few people of color who are men. However, there are no women of color. The company is too big for it to be a coincidence. She tells the company this, but they tell her that she doesn’t make any sense. There are people of color working there, and there are women. But there are no women of color, no people with those two overlapping identity factors.

Creating policies that combat transphobia or policies that combat racism won’t be as effective as creating policies that combat transphobia and racism together! Otherwise, people who are trans and Latinx won’t feel the positive impact of the policies.

Looking at someone’s gender and race as things that can overlap rather than two completely separate things is the root of intersectionality. For instance, in the media, when you see people who are 2SLGBTQIA+ most often, they will be white. Taking intersectionality into consideration in hiring practices, and in the way we act around other people, is really important. Especially if we want to live in an aware, equitable and safe world.

Some people interpret intersectionality as changing the social hierarchy. This is definitely not true. Intersectionality is about removing any social hierarchy so that there is no ‘top’ or ‘bottom’. It can help everyone can feel safe, heard and supported. It doesn’t require the people at the top to sacrifice anything or to be trampled on by others.

Intersectionality simply asks us to be aware of the way that multiple identities can overlap and increase discrimination for people. It asks us to view the world differently and acknowledge our privilege. That can be an uncomfortable journey, and make sure to talk to people or reach out for help if you need. However, just because it’s uncomfortable doesn’t mean we shouldn’t go there. If we leave the problems of discrimination alone, they will only get worse. We have to learn, we have to go to the uncomfortable places. In summary, people who have multiple identities, (such as being 2SLGBTQIA+ and being a part of a racialized group) face discrimination from both of those together. They face more discrimination than someone who is part of a racialized group but is not 2SLGBTQIA+, or someone who is 2SLGBTQIA+ but is white. We need to structure society and build government policies so that those with multiple identity factors are included and not left on the margins.