{"id":889,"date":"2018-09-28T12:52:25","date_gmt":"2018-09-28T16:52:25","guid":{"rendered":"https:\/\/fortax.ca\/?p=889"},"modified":"2018-09-28T12:52:25","modified_gmt":"2018-09-28T16:52:25","slug":"are-you-paying-your-retirement-tax","status":"publish","type":"post","link":"https:\/\/evolvethought.com\/fortax\/2018\/09\/28\/are-you-paying-your-retirement-tax\/","title":{"rendered":"Are you paying your \u201cretirement tax\u201d?"},"content":{"rendered":"<style>\n.page-title-inner {display: none;}\n.entry-header-text-top {display: none;}\ndiv#comments {display: none;}\n.entry-author {display:none;}\nfooter.entry-meta {display: none;}\n.sp-big-p {font-size: 120%; font-weight: 600;}\n<\/style>\n<h4 style=\"font-size: 180%; font-weight: 500;\">Listen to this Podcast<\/h4>\n<p><iframe frameborder='0' height='94px' scrolling='no' seamless src='https:\/\/simplecast.com\/e\/cff6e478?style=medium-light' width='100%'><\/iframe><br \/>\n[gap]<br \/>\n[divider width=&#8221;100%&#8221; height=&#8221;1.5px&#8221;]<\/p>\n<h2 style=\"margin-bottom: 1em;\">Are you paying your \u201cretirement tax\u201d?<\/h2>\n<p class=\"sp-big-p\">As a Canadian consumer, you pay quite a bit in taxes.<\/p>\n<p class=\"sp-big-p\">If you live in the province of Ontario, for example, in addition to income and other types of taxes, you\u2019re paying 13% in HST on the majority of your purchases.<\/p>\n<p class=\"sp-big-p\">For the most part, we accept paying sales tax as inevitable. Unless there\u2019s a change to the tax rate, we don\u2019t think much about that extra 13% that disappears from our wallets at the till.<\/p>\n<p class=\"sp-big-p\">Here\u2019s a novel idea: what if we had a \u201ctax\u201d that we paid to ourselves?<\/p>\n<p>What if we decided on a certain percentage to automatically put aside for our retirement. Let\u2019s call it our Personal Retirement Tax (PRT).<\/p>\n<p>The idea behind this is that there are many costs that we bear without question, simply because \u201cthat\u2019s the way it is.\u201d And yet when it comes to retirement, many experts suggest that Canadians aren\u2019t financially prepared. Yet if we were forced to put aside a percentage of our income to finance retirement, we would simply accept that as inevitable.<\/p>\n<p>So why not start paying yourself a Personal Retirement Tax?<\/p>\n<p>If your net income is $40,000, for example, and you set your PRT at 13%, that\u2019s $5,200 a year that you\u2019d contribute to your retirement. Over time \u2014 say, 20 years \u2014 even with modest compound interest or returns on your investment, that could add up to a tidy nest egg of $160,000.*<\/p>\n<p>In order to accumulate that nest egg, you\u2019d only need to save $100 a week. Make it automatic \u2014 the same way you would if it were an actual tax being deducted from your pay \u2014 by setting up a savings plan to transfer the money each payday from your chequing account into your high interest savings or your RRSP.<\/p>\n<p>Being a good saver is a state of mind. And making up your mind to pay yourself a PRT could just be the ticket to a leisurely retirement.<\/p>\n<p>*Based on saving $100 a week and earning 4%, compounded monthly for 20 years, without factoring inflation. Example for illustrative purposes only.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Listen to this Podcast [gap] [divider width=&#8221;100%&#8221; height=&#8221;1.5px&#8221;] Are you paying your \u201cretirement tax\u201d? As a Canadian consumer, you pay quite a bit in taxes. If you live in the province of Ontario, for example, in addition to income and other types of taxes, you\u2019re paying 13% in HST on the majority of your purchases&#8230;.<\/p>\n","protected":false},"author":1,"featured_media":891,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"footnotes":""},"categories":[72],"tags":[],"class_list":["post-889","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fortax-blog"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/evolvethought.com\/fortax\/wp-json\/wp\/v2\/posts\/889","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/evolvethought.com\/fortax\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/evolvethought.com\/fortax\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/evolvethought.com\/fortax\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/evolvethought.com\/fortax\/wp-json\/wp\/v2\/comments?post=889"}],"version-history":[{"count":0,"href":"https:\/\/evolvethought.com\/fortax\/wp-json\/wp\/v2\/posts\/889\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/evolvethought.com\/fortax\/wp-json\/wp\/v2\/media\/891"}],"wp:attachment":[{"href":"https:\/\/evolvethought.com\/fortax\/wp-json\/wp\/v2\/media?parent=889"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/evolvethought.com\/fortax\/wp-json\/wp\/v2\/categories?post=889"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/evolvethought.com\/fortax\/wp-json\/wp\/v2\/tags?post=889"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}