HERE'S your New Year's quarterly planner to help make 2013 a lucky year for your finances.
? January-March: The RRSP is still the best way for most Canadians most of the time to save money and income tax.
Try to contribute in a higher tax bracket and withdraw money in a lower bracket.
After contributing for 2012 (by March 01, 2013), set up a monthly contribution plan for 2013 starting in March so your money can grow tax-free sooner - and because it's easier to contribute a small amount every month than a lump sum once a year.
If you have an outstanding credit card balance because of holiday spending, consider a usually much cheaper line of credit or personal loan to pay off the card, provided you then don't run it up again.
? April-June: Pencil in your tax return (especially if somebody else does your taxes) to alert you to deductions and credits you aren't claiming to motivate you to find out if you could rearrange your affairs to get those tax breaks.
If you regularly receive a large tax refund, try to have less tax withheld during the year or pay lower quarterly installments to avoid giving Ottawa that interest-free loan for up to a year or longer.
? July-September: Use summer to review your finances and meet with your advisor(s). Set action deadlines to move quickly and efficiently to your objectives.
If you have (grand)children, help them understand the basics of saving and investing. Try to teach/lead by example.
? October-December: Start your year-end tax planning in November. Plan a rough budget so holiday spending doesn't produce a financial hangover.
? All year: Pay off non-deductible debt - the best investment for most people (where else can you earn a guaranteed five to 30 per cent return after tax?). Consider a self-employed sideline (and pay family members in a lower tax bracket to work for you) to claim deductions most employees can't. Learn about diversify investments but don't invest past your sleeping point.
Mike Grenby is a columnist and independent personal financial advisor; he'll answer questions in this column as space allows but cannot reply personally - email [email protected].
