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  • Overcharged at checkout? What to know about Canada’s Scanner Price Accuracy Code

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    What is the Scanner Price Accuracy Code?

    The code is a voluntary policy created in 2002 to give shoppers—in some circumstances—recourse when they’re mischarged. It is sometimes called the Scanning Code of Practice and is supported by three industry groups: the Retail Council of Canada, the Canadian Federation of Independent Grocers, and the Neighbourhood Pharmacy Association of Canada.

    How it works

    If an item is advertised as less than $10 and rings up incorrectly, the code dictates the purchaser should receive the item for free. If you’re buying multiples of the same item, the code says the shopper gets the first one free and all subsequent items at the price they should have been charged. 

    If the incorrectly priced item costs more than $10, customers receive $10 off the displayed price. If more than one is being purchased, the customer receives $10 off the first item. Every subsequent item should be priced at the amount they should have been charged.

    Buyers can receive their discount by flagging mischarges to cashiers or a customer service desk, said Kalie Belanger, a senior co-ordinator of membership engagement and services at the Retail Council of Canada. 

    Canada’s best credit cards for groceries

    What it applies to

    The code only applies to items with a bar code, Universal Product Code, or a Price Look Up. A UPC is the 12-digit numeric code that identifies products and is scanned at a cash register. The PLU is typically four or five digits long and identifies bulk produce items.

    However, the code doesn’t apply to items priced by weight. That means if a grocery store is selling apples at a few cents per pound and you enter a code at the cash register to reveal the price, the code won’t apply. (For a pre-packaged bag of apples with a set price, and scanned with a barcode, the code can be enforced, said Belanger.)

    The code does not apply to items with prices physically attached to them—merchandise with sale or clearance stickers, percentage discount stickers, clothing with hang tags or sewn-in price tags and electronics or books with printed price labels on them.

    The code also doesn’t apply to government-regulated items such as tobacco or alcohol, or prescription drugs or cosmetics kept behind the counter.

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    Where it applies

    The code applies across most of Canada but not in certain provinces or territories like Quebec, where legislation already offers recourse when customers are mischarged.

    It’s only applied at retailers that sign the code, which include Best Buy, Canadian Tire, Costco, Giant Tiger, Loblaw Cos. Ltd., Metro, Rona, Shoppers Drug Mart, Sobeys, Home Depot Canada, and Walmart Canada. 

    To find out whether the place you’re shopping has signed the code, look for signage at the front of the store or ask a cashier, said Santo Ligotti, the council’s vice-president of marketing and member services.

    If a flyer specifically says a promotion is only available at certain locations and the store where you’re shopping is not listed, the code does not apply. However, if the location is listed, it applies. If there is no mention of which stores the flyer is applicable to, it is assumed to be effective at all stores and the code would apply.

    An important caveat

    Retailers can limit the quantity of items in a single transaction they apply the code to, Ligotti said.

    He’s found this caveat has become increasingly important because retailers have noticed some shoppers scouring every shelf in the store to find mispriced items and report them to others online in hopes that they can take advantage, too, before the mistake is corrected.

    “There are some times where they do deny the code because this is people’s hobby sometimes, but (that behaviour is) beyond the intent of the code,” Ligotti said.

    FAQs

    Can the code help me with a product that’s left on the wrong display which has a lower price?
    No, the code only applies when the product matches the shelf label.

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  • EQ Bank aims to become a household name

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    That could all soon change, says Chadwick Westlake, who became chief executive of EQ Bank last August and already announced a transformational, potentially career-defining deal to buy PC Financial in December. “We will become a household name by the end of this year,” he said. Buying the PC Mastercard portfolio and PC Money accounts, while bringing on Loblaw Cos. Ltd. and its PC Optimum loyalty program into a partnership, will put the EQ Bank brand into thousands of grocery stores and ATMs across the country.

    Major deal and leadership shifts signal a new era

    Westlake said he knew when he stepped into the role that he had to make this deal happen to raise the profile of a bank that 80% to 90% of Canadians don’t know. “This was a top priority, because I truly believe this is the key to creating a scaled significant challenger for Canada. There’s no deal like this,” he said in an interview.

    The deal, expected to close this year, is the most significant but hardly the only change going on at the bank as it aims to create real competition to the Big Six that dominate Canada’s market. 

    There’s the change in leadership, with Westlake stepping into the role after previous CEO Andrew Moor died suddenly after 18 years at the helm. The bank has made other significant new hires, like Anilisa Sainani, who stepped into the CFO role last August, while the bank itself has also moved into a brand new head office. 

    Digital banking meets real-world visibility

    But it’s the PC Financial deal that Canadians will most notice, as EQ Bank’s yellow branding springs up in stores, and solves a key challenge for a digital financial firm trying to compete with established players.

    “One of the things this does is it gives us more trust, and trust is paramount in banking,” said Westlake. He said digital-only banks plateau at a certain level, especially when Canadians are fairly complacent in their banking preferences. “It has held us back in some ways. I think it needs to be more real,” he said. “People still like people.”

    But that doesn’t mean there will be EQ Bank branches popping up on street corners, as EQ keeps a close focus on costs and efficiencies. Growth could instead come from possibly expanding the 180 pavilions in grocery stores. “You get all the functionality without needing to have the vault and the cash, keeping it simple.”

    EQ Bank trims costs and manages credit risk

    Westlake has been working to keep the bank trim elsewhere as well, pushing through a round of layoffs last fall that saw about 8% of staff cut after expenses at the bank had crept up. “We did make some big and difficult decisions, but it’s important for us to operate very efficiently.”

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    Besides boosting efficiencies, EQB Inc., as the parent company is known, has also been working to limit loan losses that have spiked along with economic uncertainty. The bank is relatively much more exposed to the mortgage market than the Big Six, and it’s also pushed heavily into alternative mortgages, serving clients like the self-employed who may struggle to get a conventional loan.

    In the last quarter, EQB saw its share of concerning loans rise, pushing up its provisions for credit losses. The bank saw a “material credit deterioration that was evident across its loan portfolio,” said Scotiabank analyst Mike Rizvanovic in a note after EQB’s Q4 results. The PC Financial deal will make the bank even more sensitive to future credit cycles, noted Rizvanovic, adding that he’s concerned about how PC Financial’s card portfolio tends to run at much higher loss ratios than the larger banks’ cards. 

    Westlake pushed back on PC Financial cards having higher loss ratios, saying it was about mid-pack with the big banks, while also saying that alternative mortgage clients can also be more resilient in downturns. 

    Rizvanovic said the deal does provide helpful revenue diversification, could be “transformative” for the bank’s deposit franchise and that he sees strong upside for growth in the credit card business, but overall he said it wasn’t such a clear win.  

    Other analysts have been more bullish, including BMO’s Étienne Ricard who raised his price target for EQB to $130 from $108, saying the deal was strategically enhancing, diversifies the bank, and provides cross-selling potential.

    EQ Bank eyes wealth management to fill product gaps

    One thing the PC deal doesn’t do, though, is bring in wealth management capabilities like stock trading or investment advisory services. Along with credit cards, it’s been the other big gap for EQ Bank and one Westlake said they’re actively looking to fill, likely through another acquisition or partnership. “This is similar to the PC deal, where my view is you can’t build it.”

    If it all comes together, EQ Bank could have the range of products needed to compete, but other online-based banks are also quickly muscling up. Wealthsimple Inc. launched its first credit card last year, and Questrade Financial Group secured a banking licence last October with plans to expand. 

    Westlake said that all the alternatives combined still make up such a small share compared with the Big Six that there’s room for all of them to grow. 

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  • Old-school financial advice that no longer applies

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    As younger Canadians continue to face high housing costs, slowing wage growth and other challenges, age-old financial adages have become outdated, forcing a rethink of what smart money management looks like today. Here are some common rules of thumb for money management that financial advisers say need re-examining.

    Housing should only take up a third of your budget

    “If you’re trying to stick to this rule, you can only afford to buy a home that’s $500,000, which is well below the average across the country, and it doesn’t go very far in most major cities,” said Jason Nicola, certified financial planner at Vancouver-based Nicola Wealth. He cites research that shows just how much things have changed from previous generations.

    The home price-to-income ratio has steadily grown over the past several decades. Data shows that in the early 1980s, the home price-to-income ratio was about two to three. Now, the ratio sits closer to six or seven.  

    The home affordability challenge remains even after accounting for today’s lower interest rates. With mortgage rates of about 4.5% today, a young couple with $100,000 in gross income would have to spend at least 45% of their after-tax income just to cover monthly mortgage payments, let alone pay for property taxes, insurance, and maintenance, said Nicola.

    Though he doesn’t recommend it, he said it’s not uncommon to see some households spend up to 50% of their monthly income on housing costs. “I think it’s just the uncomfortable reality for a lot of people,” he said.

    Savings will grow with the power of compound interest

    Setting cash aside in a savings account may have benefited significantly from compound interest in the ’80s when rates ranged between 10% and 15%. But with “high-interest” savings accounts currently typically offering rates of 2% to 4%, experts say money should be invested rather than left sitting as cash.

    “Perhaps interest rates, the amount that you could receive has changed, but the power of compounding has not changed,” said Aldo Lopez-Gil, a financial adviser at Edward Jones based in Toronto.  He explains that given lower interest rates today, compounding growth is best seen in other savings vehicles like the tax-free savings account or first home savings account.

    Compare the best TFSA rates in Canada

    “I think there’s a gap in terms of education and understanding as to what investments can be put into a TFSA,” said Lopez-Gil. “In my experience, it’s a completely underutilized account by Canadians.”

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    Nicola agreed that there is still power in the compounding of returns over time, even though interest rates are lower now. That’s why he discourages keeping a three- to six-month emergency fund in a traditional savings account. 

    “Sure, it’s a great idea and it’s a really nice thing to have that gives you comfort. I just don’t think it’s a hard and fast rule,” he said. “[Very few] of my clients are going to have six months of spending just sitting in cash not earning any interest.”

    Start saving early for retirement

    While previous generations focused on paying down debt as quickly as possible and saving what remained, this approach may be unnecessary for young Canadians today.

    “People early in their careers are often in lower tax brackets, so an RRSP might not make much sense,” said Ainsley Mackie, portfolio manager with Verecan Capital Management. “Not all debt is bad debt. It doesn’t have to be rushed to pay it off,” she said. In fact, Mackie advised that having some debt and making regular payments will help build credit, a “super important goal” if you’re going to apply for a mortgage later.

    Invest your money or pay off debt?

    A comprehensive guide for Canadians

    She cautions against high-interest loans for recreational items like ATVs and snowmobiles—common “toys” in her town of Nelson, B.C., where rates on such loans can hover around 21%.

    Lopez-Gil thinks the current widespread perception of how much we need in retirement is overly emphasized. “I don’t think there’s a universal withdrawal rate that everybody could use,” he said. “The 4% rule has been talked about for decades [but] it does vary by person and their desired lifestyle.”

    Instead, he suggests young Canadians invest in themselves and their future earnings. “RESPs used to be a bit more restricted in terms of what you can use it for, but that has started to really open up,” he said.

    This advice comes as career paths for young Canadians look very different than they did for previous generations. 

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  • Unexpected money? Here’s what Canada taxes—and what it doesn’t – MoneySense

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    With an April 30 tax-filing deadline fast approaching, you might now be starting to wonder: How much am I going to owe from all that? The answer, tax specialists say, is probably nothing.

    Inheritance and windfall are two examples of money streams that people in Canada typically don’t pay tax on. Experts say it’s important to raise awareness of those and other common tax-free income sources, especially given how difficult it can be to navigate the ins and outs of the system during the thick of tax-filing season.

    What counts as taxable income—and what doesn’t

    H&R Block Canada tax expert Yannick Lemay said those exemptions can add up to significant savings. “With taxes, there’s a lot of nuances,” he said. “We have to be careful to know exactly the nature of the amounts we have received and how it has to be reported on your tax return because there are severe penalties for not declaring all your income.”

    Lemay said it’s important to consider how certain money was earned to determine whether it’s taxable. For instance, while lottery and gambling winnings for the average person in Canada aren’t usually taxed—something often misunderstood due to differing rules in the United States—that’s not the case for a professional poker player.

    “If, for example, you just casually go to the casino once in a while and you earn some money during the year, that is true that this money is tax-free,” he said. “But for someone else, maybe the casino winnings are the main source of income.”

    For the latter, someone who likely puts additional time and training into the craft, any winnings would be classified as business income, therefore making it taxable. “So, same source of money, same payer, but different treatment depending on who’s receiving it,” said Lemay.

    Income Tax Guide for Canadians

    Deadlines, tax tips and more

    The key is whether you’re attempting to bring in “recurring” income, said Gerry Vittoratos, tax specialist at UFile. That comes into play for those working in the gig economy or managing a side hustle—like running an Etsy store or delivering Uber Eats orders. “All of that is usually considered business income and the key is that it’s recurring,” he said. “You are regularly trying to earn income off of it.”

    How to deal with gifts, inheritances, and scholarships

    Lemay pointed to other money sources that aren’t taxable, such as gifts. No matter the size, gifted cash you receive isn’t taxable—however, any income generated from that sum of money would be.

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    Similarly, cash or property that’s inherited isn’t considered taxable income, however any income earned after you receive it, like interest or rental income, is taxable.

    Other tax-free income sources could include child support payments, most life insurance payouts, and certain government payouts, such as the GST credit or Canada Child Benefit.

    Lemay cautioned that some non-taxable amounts still need to be reported even if no tax is actually paid on it, as it can affect eligibility for such credits and benefits.

    For young adults enrolled in academic programs, scholarships, and bursaries are a common source of money that may not be taxed. That’s the case for full-time students enrolled in the current, prior, or next year, said Vittoratos. However, part-time students need to report amounts above certain thresholds.

    “If you’re a full-time student … you don’t even declare it on the return. It’s income that you just pocket directly,” he said. “If, though, you’re a part-time studentand you weren’t a full-time student in one of those three years, you only get a $500 exemption. Anything above that will become taxable and you have to declare it on the return.”

    Reporting unusual income: when in doubt, declare it

    Other income sources that don’t usually get taxed include union strike pay meant to help cover living expenses, personal injury or wrongful death compensation, and workers’ compensation benefits.

    When in doubt, Vittoratos said it’s better to report income than to omit information and potentially suffer the consequences. However, he noted it’s possible to amend your tax return later on. “The biggest mistakes people make on their returns is omissions,” he said. “It’s always, ‘Oh look I found this receipt three months later’ and then I have to amend the return.”

    Vittoratos added it’s important to remember that although January to April is generally considered tax season, it should never be “just a four-month process” for filing. The more time you give yourself to plan before the filing deadline, the less likely you are to make such errors. “January to April is when you’re actually filing your return, but your tax return is the year that just passed,” he said.

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  • Breaking up is hard—especially when you can’t afford to leave – MoneySense

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    When and how to plan your move

    The move has to be thought through in stages, said Chantel Chapman, founder of Trauma of Money, a certification program that teaches professionals a trauma-sensitive approach to money.

    First, it’s important to identify the urgency of moving out, she said. If you’re not safe in the environment, the urgency is high. “If that’s the case, then you don’t really have the privilege of planning. It’s more about survival,” she said. Chapman said in these circumstances, it would be better to stay with a friend or family member to avoid dealing with an unsafe or difficult environment.

    If there’s no safety concern, there’s a bit more room to think through the change.

    Mapping your move: finances and emotional readiness

    While it looks different for everyone, Chapman said to start with mapping what moving out would look like and how much it would cost. Then plan realistically how quickly you’d be able to acquire the funds to do so. Take that timeline and compare it with your emotional capacity, she said. “There’s a lot of back and forth between the dollars and the budget required, and then your emotional capacity, your emotional budget,” Chapman said.

    Heather Thom often hears concerns from her clients about whether they’d be able to move out, find a place that’s still close to work or family, and land on their feet again. “There are so many things that they would have to figure out,” Thom, a registered professional counsellor and life coach, said. “But it’s also they’re starting over and it could be very scary.”

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    Thom said it’s important to set a deadline for a move-out so you can mentally prepare. She suggested allowing yourself two to three months to get your finances in order.

    “A lot of people who are living together have shared expenses and they might not necessarily think about that right away when they breakup,” Thom said. Many couples share rent, groceries, utility, and internet costs, and it’s easier to pay bills in a dual-income household, she said. “It can be quite a shock to them in terms of how expensive things can be after leaving the relationship,” Thom said.

    Thom said you also need to figure out what happens to the current home—who moves out and who stays, who will embark on an exhausting hunt for a new home and shoulder the overall cost of moving. “There’s just a lot of decision fatigue that can happen during that time,” she said. 

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    How to emotionally detach after a breakup

    After the breakup but while you’re still in the same space, Thom said it’s important to set boundaries and emotionally detach yourself, such as limiting interactions in shared spaces and having minimal conversations about daily life or future plans. That might mean not having meals together, cooking together, or going shopping together, for example.

    Chapman said people who’ve lived together for a long time need to check their legal rights and responsibilities. She said if a couple has a cohabitation agreement, it would help look at the assets or liabilities they each brought into the relationship.

    Prioritizing your needs while still sharing a home

    Chapman said prioritizing needs is important in this situation and whether you choose to stay or leave right away, there are pros and cons.

    Prioritizing finances may mean facing awkward situations in the shared home for a few weeks or months, while focusing on mental health by moving quickly risks rushing into a decision—or a new place—that may not be good for you.

    Thom said prolonging your stay after the breakup can also raise the risk of being pulled back into the relationship. The affordability panic, combined with the fresh hurt of a relationship breakdown, can make it really easy to romanticize the relationship even when it has run its course, she said.

    “They’re afraid of what the future is going to look like without their life partner, and also financially,” Thom said. “People need to just recognize that, yeah, it might be tough for a little while, but things will get better.”

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    About The Canadian Press

    The Canadian Press is Canada’s trusted news source and leader in providing real-time stories. We give Canadians an authentic, unbiased source, driven by truth, accuracy and timeliness.

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  • With pensions declining, Canadians must plan their own retirement – MoneySense

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    “The decline of defined benefit and contribution pension plans has fundamentally shifted the burden of retirement planning on to individuals in recent years,” Christine Van Cauwenberghe, head of financial planning at IG Wealth Management, said in a news release. 

    As pensions disappear, many Canadians lack a retirement plan

    Employers began phasing out defined benefit pension plans about 30 years ago, the release said, leaving more Canadians without the same level of guaranteed income than previous generations.  

    “Our data shows that while Canadians recognize this shift, many still lack a clear picture of what they need to save–and how to convert their savings into a ‘personal pension plan,’” Van Cauwenberghe said. 

    The survey found only 11% of non-retired Canadians say they know how much annual income they will need in retirement, while roughly half say they simply do not know at all. Only one-third said they have a retirement plan and savings.

    Meanwhile, the survey said about a quarter of employer pension holders didn’t know the details of their plan, including whether it is a defined benefit or defined contribution plan. 

    Canadians remain unprepared for longevity and market risks

    The survey also highlighted knowledge gaps among Canadians despite having to increasingly rely on their own personal savings. Only four in 10 respondents indicated an understanding of old age security, a registered retirement income fund, or the tax implications of retirement income. 

    Other findings included that few Canadians have accounted for longevity risks to their retirement plan, including inflation, health-care costs and market downturns. About 67% of respondents have not stress tested their plan for any potential major economic or financial risks. 

    The online survey of 1,350 Canadian adults was done by Pollara Strategic Insights, on behalf of IG Wealth Management, between Jan. 9 and 14. The polling industry’s professional body, the Canadian Research Insights Council, said online surveys cannot be assigned a margin of error because they do not randomly sample the population.

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    Tax-free savings are outpacing RRSP contributions

    In recent years, data shows Canadians have favoured financial vehicles geared more toward tax-free savings than retirement. 

    In April last year, Statistics Canada released figures on the utilization of tax-sheltered savings accounts by Canadians in 2023, based on income tax filing data. 

    The agency found that 11.3 million tax filers made a contribution to either a registered retirement savings plan or a tax-free savings account. Of that group, 3.8 million contributed only to their RRSP, while five million contributed only to their TFSA. About 2.5 million contributed to both their TFSA and RRSP. 

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    About The Canadian Press


    About The Canadian Press

    The Canadian Press is Canada’s trusted news source and leader in providing real-time stories. We give Canadians an authentic, unbiased source, driven by truth, accuracy and timeliness.

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  • Guaranteed returns: Achieva GICs, a hidden gem of RRSP season – MoneySense

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    That’s where guaranteed investment certificates (GICs) can quietly shine. When used strategically, GICs can provide balance, certainty, and tax efficiency within an RRSP. And when those RRSP GICs come from a credit-union-backed financial institution offering highly competitive rates, like Achieva Financial, they can be a key building block in your retirement strategy instead of just a supporting piece. RRSP GICs offer a way to reduce your taxes today while adding predictability to your long-term retirement plan.

    Maximize your investment mix, balance your risk.

    Discussions about investing often focus on maximizing returns. Mutual funds and exchange-traded funds (ETFs) naturally dominate, especially earlier in an investor’s journey. But while higher-risk growth assets are important, relying on them too heavily can expose your portfolio to more volatility than you might be comfortable with.

    Investor behaviour reflects this tendency. A Fair Canada Investor Survey found that more than 80% of investors purchase higher-risk investments like mutual funds and ETFs, but far fewer (only 31%) look to low-risk options like GICs. In other words, many Canadians prioritize growth potential, even when it comes with greater volatility.

    What is often missed is the value of certainty. Guaranteed returns can provide stability, predictability, and peace of mind—and this matters when you need to protect your capital.

    How GICs add stability and predictability

    A GIC is a low-risk investment that offers a fixed rate of return over a set period of time. GICs are available from banks, trust companies, and credit unions, including online divisions like Achieva Financial, including credit unions and their online divisions, like Achieva Financial, which is part of Manitoba-based Cambrian Credit Union. 

    Unlike market-based investments such as ETFs and mutual funds, GICs protect your principal while delivering a guaranteed return. This makes them especially good options for RRSP investors who value stability alongside growth. Achieva Financial offers among the highest GIC rates in Canada, including a 2-year RRSP GIC currently paying 3.80%, allowing investors to lock in returns with confidence. All deposits are guaranteed without limit by the Deposit Guarantee Corporation of Manitoba.

    GICs are typically available with terms ranging from one to five years. While longer terms often offer higher rates, this offers a good opportunity to strategically “ladder” GICs. When you spread your RRSP GICs across different terms, some of your savings mature each year. This gives you steady access to your money, helps you adjust to changing interest rates, and makes retirement income planning more predictable.

    What to look for in an RRSP GIC during contribution season

    If you’re considering RRSP GICs ahead of the March 2, 2026 contribution deadline, a few key factors can help guide your decision:

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    • Term selection and laddering: Rather than choosing a single term, consider building a GIC ladder with staggered maturities. Achieva Financial’s range of RRSP GIC terms makes it easier to align guaranteed investments with your retirement timeline while maintaining flexibility.
    • Competitive fixed rates: Fixed-rate RRSP GICs provide predictability, which is important when planning for retirement. Achieva’s RRSP GICs offer competitive rates, including a 2-year term at 3.80%, helping investors balance certainty with strong returns.
    • Deposit protection: Protection matters, especially for guaranteed investments. As part of Manitoba’s credit union system, Achieva Financial deposits are guaranteed without limit by the Deposit Guarantee Corporation of Manitoba.

    Once GICs are part of your RRSP, their role will naturally evolve over time.

    Early in your career, when retirement is still years (or decades) away, your portfolio may lean heavily into mutual funds or ETFs with a smaller allocation to GICs. That said, GICs can still play an important role for younger investors with a lower risk tolerance, whether due to discomfort with market volatility or a shorter-term goal like saving for a first home. As retirement approaches, you may want to gradually shift towards investments with guaranteed returns that reduce volatility and protect the savings you’ve accumulated.

    This gradual transition can help preserve the progress you’ve made, without removing growth from the equation. 

    The bottom line

    GICs aren’t just a conservative choice, they’re a strategic one. Within an RRSP, they combine tax efficiency with guaranteed rate of return, making them particularly valuable as retirement gets closer and priorities begin to shift. They can also make sense earlier on, particularly for younger investors who prefer certainty over volatility or are working toward shorter-term goals within their registered plan. 

    With competitive rates like Achieva Financial’s 2-year RRSP GIC at 3.80%, term options suited to laddering, and deposits guaranteed without limit by the Deposit Guarantee Corporation of Manitoba, Achieva’s RRSP GICs help create a steady, worry-free approach to planning for retirement. Combining GICs with higher-risk investments is a common way to build a balanced portfolio that will serve you through your golden years.

    As the March 2 RRSP deadline approaches, this may be the ideal time to revisit how Achieva RRSP GICs can fit into your long-term plan—and whether your RRSP asset mix could benefit from more certainty.

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    About Jessica Gibson


    About Jessica Gibson

    Jessica Gibson is a personal finance writer with over a decade of experience in online publishing. She enjoys helping readers make informed decisions about credit cards, insurance, and debt management.

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  • Gen Z Canadians face job losses—but time is on their side – MoneySense

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    Young people face many of the same job challenges as older workers, plus some extra ones, like limited work experience. Still, they have one major advantage: time. Younger people have more years to save and invest. If you’re Gen Z and trying to improve your financial future in a shaky economy, starting now can make a big difference. 

    Economic outlook for Gen Z Canadians

    Gen Z includes people born between 1997 and 2012, which closely matches the 15–24 age group used by Statistics Canada. Here’s a snapshot of their financial situation.

    High cost of living

    Rising prices affect everyone. Inflation, high rent costs, and expensive groceries are putting pressure on young Canadians, just like older ones.

    Unemployment

    More than 50,000 young people claimed EI in one year alone. This number doesn’t include gig workers, contractors, part-time workers, or others who don’t qualify for EI. That means the real number of unemployed young people is likely higher.

    Employment

    Even those who are working are struggling. Many hold two or more jobs to keep up with costs. A KOHO survey found that Gen Z’s average monthly income is just $1,083. Nearly half (49%) expect to take on more work in the next year, and 70% say they feel financially unstable or only somewhat stable.

    Debt

    Younger Canadians generally have less debt than older groups, but the average is still close to $8,500 per person. That’s an increase of 3.84% from the year before, according to Equifax.

    Savings and investments

    Gen Z doesn’t have much left over to save. The KOHO study found that end-of-month balances averaged just $9 to $16. Still, savings among this group grew by 23% year over year. That effort to save and invest, even with tight finances, is a positive sign for the future.

    Gen Z’s long time horizon

    When it comes to saving and investing, how long your money stays invested matters just as much as how much you put in. The longer your money sits in an account or investment, the more interest it can earn. This is called a time horizon.

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    The magic of compound interest

    Compound interest means earning interest on both your original money and the interest it has already earned. For example, here’s what happens if you invest $100 at a 2% interest rate:

    Starting amount Interest earned Ending amount
    Month 1 $100 $2 $102
    Month 2 $102 $2.04 $104.04
    Month 3 $104.04 $2.08 $106.12
    Month 4 $106.12 $2.12 $108.24
    Month 5 $108.24 $2.16 $110.40

    Savings accounts and GICs are examples of investments that earn compound interest. 

    Stock market fluctuations

    Stocks work differently because their value goes up and down. They’re riskier, but they can also offer higher returns. Having a long time horizon gives your investments more time to recover after market drops.

    Tools for young Canadian investors and savers

    Most people benefit from having different types of savings and investments for different goals. Here are some common options for young Canadians.

    Unregistered accounts: HISAs and GICs

    Unregistered accounts don’t have limits on deposits or withdrawals. They work like regular savings or chequing accounts.

    A high-interest savings account (HISA) is good for emergency savings because you can access your money anytime. A guaranteed investment certificate (GIC) locks your money in for a set period, which can work well for medium-term goals.

    These options are low risk because they guarantee your original money plus interest. The downside is lower returns compared to riskier investments.

    Compare the best HISAs rates in Canada

    Registered accounts: RRSPs, TFSAs, and FHSAs

    Registered accounts offer tax benefits that help Canadians save and invest more effectively.

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  • The newcomer’s smart spending guide: Turn everyday purchases into rewards – MoneySense

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    This guide breaks down which everyday spending categories earn the best rewards, how to choose a rewards program that fits your needs, and practical tips to help you build credit faster while keeping more money in your pocket.

    Everyday spending categories that deliver the best rewards

    If you’re new to Canada, chances are you’re already spending in many of these categories. Review the list below and think about where most of your money will go—those are the areas where rewards can add up fastest.

    • Groceries: Weekly food shopping is often one of the biggest household expenses, making it one of the easiest ways to earn significant rewards.
    • Transportation: Paying for monthly bus passes, rideshares, gas, and parking is another big-budget item that can really add up. For example, if you use the RBC More Rewards Visa, you’ll earn 5 points per $1 spent on gas, EV charging, dining, and purchases with grocery and pharmacy partners.
    • Restaurants and dining: Whether you’re grabbing a quick bite to eat or stopping at a coffee shop for your morning espresso, you can earn rewards.
    • Drugstores and pharmacies: As you settle in, you may spend more on household essentials and health items. This is another key rewards category to take advantage of.
    • Recurring bills: Monthly expenses like your mobile phone, internet, streaming services, and utilities may seem small on their own, but they add up over time.
    • Online shopping and services: Although most credit cards don’t specifically reward online shopping, nearly all cards earn base rewards on online purchases.

    Essential vs. lifestyle purchases (and how to optimize both)

    If you’re like many newcomers, you’re probably trying to stick to a budget. Part of holding yourself accountable is distinguishing wants from needs. 

    Essentials

    Essentials fall squarely into the needs category, since these are things you can’t help but buy—we’re talking food, transportation, and household supplies. Utilities are recurring bills that also qualify as needs (though something like streaming services fall into the “wants” category). 

    Since you know you’ll have to make these purchases, look for a rewards credit card that offers the highest reward rates for these essentials. You’ll get the most back for your purchases and relying on one primary rewards credit card can help you track your spending and stay on budget.

    The RBC Ion+ Visa gives 3x the Avion points for every $1 you spend on groceries, gas, dining, food delivery, rideshare, and streaming services. All other purchases earn you 1 point per $1. So, you can see how quickly you’d rack up points with a credit card that prioritizes everyday spending.

    Lifestyle purchases

    When you think of wants, eating out, catching movies or concerts, and furnishing your home all count as things that are nice to do, but not essential. Even so, you can still earn rewards by using the right credit card.

    Since these might be occasional purchases in the early months of establishing your life in Canada, you might reach for a credit card that earns you a flat rate across all spending categories, like the RBC Cash Back Preferred World Elite Mastercard. You’ll get a steady 1.5% cash back on all your purchases—wants and needs.

    How flexible rewards evolve with spending trends

    When you first get a credit card after arriving in Canada, it’s natural to focus on a few key spending categories—but your budget and priorities will likely evolve. You may spend more on settlement costs and transportation in the early weeks. Over time, groceries and household expenses often take up a larger share of your budget, followed by bigger lifestyle purchases.

    As your spending shifts, so can the way you use your rewards. Early on, cash back applied to your credit card balance may be the most helpful option. Later, you might prefer the flexibility to book travel, buy merchandise, choose gift cards, or mix and match different redemption options.

    The strongest flexible rewards programs also help you get more value from your spending through merchant offers and seasonal promotions. Most importantly, they give you control over how you redeem your rewards. For example, RBC’s Avion Rewards program lets you book flights, transfer points to airline partners, donate points to charity, apply them toward financial products, purchase merchandise or gift cards, or redeem them as a statement credit—so your rewards can grow with you.

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    6 smart spending strategies for newcomers

    Using the right credit card isn’t the only financial move you need to make. Here are some of the most effective strategies for managing your money as a newcomer:

    • Take advantage of welcome offers: If you open a credit card (or even bank account), most issuers give you the opportunity to earn a limited-time bonus for reaching spending milestones. Keep these promotions in mind when making purchases, but don’t overspend to chase the rewards.
    • Track your early spending habits: Once you’ve been using a credit card for a month or two, take some time to pinpoint your high-earning categories. You might decide that a different credit card would reward you better, or you might find that you’re indeed using the best card for you.
    • Charge your everyday purchases and recurring bills to a rewards card: Earn rewards for the things you need to buy. This is a smart money move so long as you pay off the card every month. It also simplifies bill payments.
    • Make your payments on time: Whether you’ve got a credit card bill or a recurring utility payment due, prioritize paying your bills on time and in full. This helps you start building a solid credit score, which can get you better interest rates down the road.
    • Don’t spend more than you can pay off: If you’re carrying a balance or paying late fees, interest charges quickly erase the value of any rewards you earn. Rewards only make sense if you pay your credit card balance in full and on time every month.
    • Use digital tools to budget: When you choose a bank, familiarize yourself with its online tools and mobile app. These make it easy for you to track your spending and stay on top of the rewards you’ve accumulated.

    If there’s one piece of advice to remember, it’s this: always make at least the minimum payment on your credit card, on time. Even if you can’t pay off the full balance every month, paying the minimum helps prevent negative information from being reported to Canada’s credit bureaus.

    Building toward your personal goals starts with smart money habits—and establishing a strong financial foundation in Canada from the beginning.

    Earning, saving and spending in Canada: A guide for new immigrants

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    About Jessica Gibson

    Jessica Gibson is a personal finance writer with over a decade of experience in online publishing. She enjoys helping readers make informed decisions about credit cards, insurance, and debt management.

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  • Travel for less by snapping up a stranger’s vacation (but buyer beware) – MoneySense

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    Sell or buy unused travel bookings

    For sellers, the sites offer a chance to recoup much of the cost of a trip they can no longer take, whether due to work, illness, emergency, or bereavement. For buyers, they open the door to cheaper travel and accommodations, bringing higher-end options within reach or simply making a getaway affordable in the first place.

    The savings for purchasers typically sit between 20% and 30%, but can range much higher, especially for reservations just a few days away.

    The platforms, which include Transfer Travel, SpareFare, Plans Change and Roomer, typically charge sellers commissions of between 10% and 30%. “It completely depends on the listing but, as an average, the value that our sellers recoup is around 1,000 pounds ($1,867),” said Maisie Blewitt, head of commercial at U.K.-based Transfer Travel. “It would have ordinarily gone to waste.”

    How ticket transfers work

    At Transfer Travel, a service team verifies the details of a new seller’s account. After selecting a booking, the buyer then communicates via a chat function with the seller, who is responsible for changing the name on the reservation and furnishing proof of the switch. The seller is paid only after the ticket transfer is complete, with the money withheld for up to five days.

    “On the chat, we will see the documents that have the new buyer’s name,” Blewitt said, though she acknowledged it can be “a bit of a scary process for some.”

    The 10-person company has some 99,000 users in the United Kingdom and the U.S., she said. In Canada, customer volumes jumped 45% last year. “There’s so much pressure on people to save money,” Blewitt said. “It’s a nice alternative to buying travel in a traditional way.”

    There’s also a limit to its appeal.

    Featured travel credit cards

    Downsides include limited options and no loyalty points

    The potential downsides for buyers include sparse and seemingly random booking options, zero loyalty points—they aren’t honoured or accumulated via third-party booking sites—and the fact that most large airlines in North America prohibit ticket transfers.

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    Those seeking precise dates or destinations may well be out of luck. Bookings for more than two people are rare. And some of the flight discounts are “not that great”—particularly given their last-minute nature—said Nastro. “It’s used enough that it’s gaining traction, but I wouldn’t say it’s as widely used as, say, an online travel agency.”

    Flexible travelers drive resale travel marketplaces

    Travellers with flexibility—young people, retirees, digital nomads—comprise the core of the eBay-esque marketplace’s customers. “This is more for somebody that’s single, can drop everything and be able to maybe work remotely or is just looking for a quick getaway,” said Nastro. The demographic dubbed DINKs—double income, no kids—are among the more recent adopters, said Blewitt.

    In North America, air travel presents some of the biggest hurdles. “Flights are always a bit of a sticky one, especially based in America and Canada,” she said. That partly explains why 48% of Transfer Travel’s bookings are for accommodations, rather than plane tickets. Cruises make up another 22%.

    Users should do their own research too, including on a given short-term rental’s reputation or whether a carrier permits ticket transfers. For example, SpareFare, where buyers can bid on already-bought plane tickets, maintains a list of airlines that allow name changes. Air Canada and WestJet are on it. The problem is, they generally do not allow name changes. “Air Canada allows name corrections, as in for typos in names, not a name change,” said Air Canada spokeswoman Angela Mah in an email.  

    Verify sites to avoid scams and fraud

    Some hotel chains are also leery of the practice, said Barry Choi, who runs the Money We Have personal finance and travel website. Guests may need to show identification bearing the name on the initial reservation to check in, he said.

    Security and fraud are concerns with any second-hand ticket purchases, including in the travel market. Experts recommend confirming that the site verifies listings and holds funds in escrow, and to be wary of less regulated forums such as Facebook Marketplace. Scams are “not super common” on travel resale sites, Blewitt said, though she’s seen them before.

    Prepaid reservations amount to just one travel hack among many—standby lists for flights and cruises, packing light, and clever use of loyalty points constitute a few others—presenting a small portal to escape at sometimes cut-rate prices. “The average holiday for four people is in the thousands now,” said Blewitt. “It’s crazy money, really. “We think travel should be accessible,” she said.

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  • Moving back home can save money—but only if you plan – MoneySense

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    While moving back home could help achieve your goals faster—paying down debt, boosting your emergency fund or saving for a house—experts say it’s important the decision is grounded in intention and that you have a proper plan.

    Plan timelines and expectations in advance

    Jeri Bittorf, financial wellness co-ordinator at Resolve Counselling Services, said moving isn’t going to solve all your problems without having measurable goals in place. Set a timeline for your savings goal, such as six or 18 months, to keep you on track and so your parents know you will eventually move out.

    Bittorf suggested people think about the hidden costs of living at home. “Moving back in with family doesn’t mean you’re going to have no expenses,” Bittorf said. “(Your parents) might also be feeling some financial burdens based on the economy right now.”

    She said it’s important to determine whether you’d be expected to pay any rent or contribute to utilities and groceries. Meanwhile, other expenses could go up, such as gasoline costs, parking fees, or public transit costs because of a longer commute.

    “I do have clients that sometimes think, ‘Oh, I’m going to move an hour and a half outside of the city to move in with family’ and then not realize the commute,” Bittorf said. “That’s not only a financial sacrifice, there’s also this emotional and personal sacrifice (of) being on the road three hours a day.”

    It’s also easier to fall back into old habits of the parent-child role when living under the same roof—an age-old challenge. A constant barrage of questions about where you’re going and when you’d be back, or whether guests are allowed at home, can become overwhelming, Bittorf said. “That can be a really hard thing, especially if you’ve lived on your own for an extended period of time,” she said, adding that it may not always be worth the mental peace.

    Revisit the arrangement with regular check-ins

    Bruce Sellery, CEO of Credit Canada, said start by listing the pros and cons to help gauge if this move is right for you. Some benefits could be higher savings, helping with chores, not having to pay for laundry and even some logistical benefits, such as living in a nicer neighbourhood again. But it also comes with risks of relationship stress, co-dependency, and holding back on your romantic life.

    Then, think about the ways to mitigate those cons, he said. That means honest conversations, for example. When someone in their 20s decides to move back home, Sellery said the conversation should be framed like a request—not an announcement. He said that could open up a broader conversation about financial goals and whether parents are comfortable with it. 

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    Bittorf said it’s important for the family to be on the same page about expectations as well as deciding what financial information you would like to keep private. “Your family might know that you’re moving in because of debt, but that doesn’t mean they get to ask you all the time, ‘How’s your debt repayment going? How much money did you make this month?’” she said. “You want to be very clear on what type of questions you’re willing to answer.”

    But that doesn’t rule out check-ins. Sellery said it’s also important to discuss the living situation on a regular basis. “The monthly check-in is two questions: What’s working well and what’s not working so well?” he said. That opens up room to talk about solutions to make things work, Sellery said. But if communication breaks down, there’s always an option to live separately again.

    “It really becomes more of a business relationship in some ways, because as a parent, you’re under no obligation to house a 25-year-old,” Sellery said. 

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  • How automation can simplify your finances – MoneySense

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    Make finances easier with automation

    Automating your finances generally means setting up automatic payments for bills and recurring investment or savings deductions from your bank account. It may sound tedious to set up but once most bill payments are automated, experts say it can bring structure to your finances and set your budget up for success.

    “It goes a long way to automate things and make your life easier,” Marques said. “Even if you’re quite a proactive person, it just makes it easier to stay on track and ensure that you’re making progress toward your goals.” She said it takes away the ability to negotiate with yourself. For example, people with a spend-first mindset might put off savings contributions. But if that amount is automated, it is easier to think of it as a bill. “You just get it done,” she said. 

    Automation supports, not replaces, budgeting

    Another benefit is avoiding late fees or charges on bills and credit cards. Marques said anything from rent to utilities to savings to investing can be automated. For variable bills, such as a credit card, she suggested automating the credit card bill payment at a minimum amount and paying off the rest manually each month.

    But automation doesn’t replace the need for budgeting. Budgeting will always be a key pillar in personal finance planning, said Michael Bergeron, certified credit counsellor and manager at Credit Canada. “The automation just supports. It’s a strategy that helps us stay within our budget,” he said. For example, if you’ve paid off your debt, that money can now be automated to allocate elsewhere, such as savings or investments—and that insight only happens when you keep up with your budget.

    Know what can (and can’t) be automated

    However, many people don’t know how to automate payments. Bergeron said the first step to automation is having a structured budget, which caters to needs, wants, and other priorities. “Once we have a structured budget in place, then we can look at what are we going to automate,” he said.

    Marques said a simple way to know what can be automated is by listing all your fixed recurring expenses, such as rent or mortgage, car insurance, and phone bill, among others. Then, look at the days you get paid and start aligning bill payments and savings to your paydays. For example, fixed payments, such as rent, can be aligned with the paycheque that comes in right before the due date and can be set up for automatic deductions. Most recurring payments for bills and savings can be easily set up with online banking platforms or utility services such as network providers or insurance firms.

    Bergeron said people still need to keep a close eye on their bank statements to make sure there are no double charges, technical errors, or overdraft charges. Also, some automation setups may have an end date, which means you’d have to reset the payments. “If you don’t pay close attention to that, then obviously some missed and late payments could take place,” he said.

    It’s likely not possible to automate all your variable expenses, such as grocery bills or fuel expenses. “There will always be some form of money management structure that you have to manually take the lead on to make sure we’re following our budget to the best of our capabilities,” he said.

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    While automation is likely to work for most people, Bergeron said it could be challenging for those who aren’t technologically savvy. He said if there’s a barrier, he doesn’t recommend automating finances until they understand the value and benefits of it. “But for the majority, it is a highly valued benefit for most people,” Bergeron said.

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    The Canadian Press is Canada’s trusted news source and leader in providing real-time stories. We give Canadians an authentic, unbiased source, driven by truth, accuracy and timeliness.

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  • How often should you check in on your finances? – MoneySense

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    What to check monthly

    Budgeting should happen consistently and frequently, said Jason Heath, an advice-only financial planner at Objective Financial Partners. “If you really want to get into the weeds on what you’re spending money on, trying to find ways to spend less, that should be a very frequent exercise,” he said, suggesting people do it monthly—or, if they’re new to budgeting, weekly.

    Heath said budgeting is especially important for those who have difficulty paying off their credit card on time or hitting their financial goals. Keeping a frequent check could help you see spending patterns and allow for changes to stay on course.

    People should also be reviewing their credit card statements to make sure there are no unexpected deductions or charges, said Wendy Brookhouse, certified financial planner and founder of Black Star Wealth. “Make sure that you catch that right away,” she said, so that you are able to fix the problem before it snowballs.

    What to check quarterly

    Brookhouse said it’s important to check in on your credit score every three months. She suggested reviewing both your Equifax and TransUnion reports. “Believe it or not, they may not always be the same,” she said. “You want to make sure that there’s nothing erroneous on it, identity theft …  because even if you found it today, it could take you a long time to get that removed,” Brookhouse said.

    A check-in on subscriptions or charges on accounts, such as Amazon and Apple, should also be on your quarterly to-do list, she said. For example, scrutinizing your Amazon or Apple accounts could help catch any charges for games or movies that your kids may have purchased.

    Also, check on subscriptions you may have signed up for trials on and forgot to cancel. “Review your donations,” Brookhouse said. “When I say donations, I mean the things you’re buying and subscribing to that you are no longer using, so you’re in effect donating to the company.”

    Then, go shopping every three months for better phone and Wi-Fi plans or even auto insurance. “Make sure you have the right plan for the right price because if your usage has changed or your patterns have changed or there’s new programs out, you may find there’s something better for you and that’s more cost-effective,” she said.

    For people who are business owners or have significant taxable non-registered investments, tax planning should be on their frequent checklist, Heath said. “The more complex somebody’s situation is, tax planning is definitely at least a quarterly discussion,” he said.

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    What to check annually

    Checking in on investments is an annual affair, Heath said. “Investments are something you would benefit from looking less frequently,” he said. “For a lot of investors, quarterly or annually is probably enough as far as taking a deep dive on your investment.”

    For people who are T4 employees with straightforward deductions, tax check-ins can be done annually, Heath said. However, he said people should plan their taxes proactively instead of retroactively when the tax season for the past year comes around in April. Instead, think about what you need to do for the current tax year while you still have time to take action.

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    Most yearly check-ins, such as reviewing your investments or life insurance, should also be reviewed during major life changes, Brookhouse said. “If you had a child, that may change your insurance requirements. If you get divorced, that could be a change,” she said. Brookhouse suggested looking at planning documents, such as checking if your will’s executor is still up to the task and whether the document expresses your current thinking.

    Another yearly review to-do should be bank fees. Brookhouse said people should shop around to make sure they can find the lowest fee for their needs, remembering that fees may have crept up over time.

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  • So you fell short of your financial goals in 2025—here’s how to do better – MoneySense

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    Many Canadians missed key goals

    A year ago, 51% of respondents to a similar poll said they wanted to pay off their debt in 2025 but only 26% managed to do so. A similar number, 49%, aimed to save for the future over the past year but only 30% of this year’s respondents reported accomplishing that task. In late 2024, 36% of respondents said they wanted to make or update their wills in 2025 but only 9% actually did. Of the 18% who were in the market for a home in 2025, just 4% bought one. 

    In fact, the share of the population with major financial to-dos crossed off their list may have taken a small step backwards in 2025. Forty percent reported having a will (versus 41% in 2024), 34% had life insurance (from 35% a year earlier) and 24%, power of attorney (compared to 27% in 2024). Only 30% of respondents said they have discussed a financial emergency plan with their families and have the related planning documents, such as a will, in place.

    The findings all came from an online survey of 1,503 Canadian adults who are members of the Angus Reid Forum. The poll took place in October. The results are considered accurate within 2.5 percentage points 19 times out of 20.

    Compare the best TFSA rates in Canada

    Why Canadians fell behind

    Although inflation has eased off as a threat somewhat—72% of respondents said they worried about its impact on their finances, compared with 86% a year ago—new risk factors such as tariffs (53%) and unemployment (44%) rank high among the reasons for not reaching financial goals. More than a third (37%) felt worse off than last year and 46% said they had to dip into savings to cover expenses. The share of Canadians who feel optimistic about their financial future dropped to 46% in 2025 from 53% in 2024.

    “All of these factors caused Canadians to by and large put off these financial to-dos related to their long-term financial health and wellness in favour of just dealing with the day to day,” says Erin Bury, Willful’s co-founder and chief executive officer. Also interfering with people’s ability to hit their objectives are generally low levels of financial literacy and the difficulty of making hard decisions and delaying gratification in the face of marketing, peer pressure and social media that urges us to do the opposite.

    “Ignorance comes into it. It’s really common to avoid thinking or planning for the future and avoiding thinking or planning for anything uncomfortable,” Bury says. “Most people are just focused on ‘How am I going to get through 2026?’, not ‘What’s my financial picture going to look like in 2056?’”

    Steps to get back on track in 2026

    Bury recommends writing down your financial goals as a first step towards getting ahead in 2026. Refer to and adjust them if necessary throughout the year. Put reminders on your calendar. The month-to-month contributions don’t have to be huge to make a difference over the long haul.

    “I have an RESP for my kids. I’m not putting in thousands of dollars a month, just a small amount,” she says. “The biggest asset we have in investing is time.”

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    Willful has created a month-by-month checklist to help keep estate and other financial objectives top-of-mind in 2026. They include topping up your RRSP for the 2025 tax year in February, centralizing your account information in one place in April and setting up a password manager for your various accounts in October.

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    About Michael McCullough


    About Michael McCullough

    Michael is a financial writer and editor in Duncan, B.C. He’s a former managing editor of Canadian Business and editorial director of Canada Wide Media. He also writes for The Globe and Mail and BCBusiness.

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  • Holiday spending is rising—and younger Canadians are leaning on credit – MoneySense

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    Gift-giving spending trends

    The holidays can be expensive. In addition to gifts, people spend on travel, food and drinks, special events, and yearly charitable donations. Still, gift-giving remains a priority for Canadians of all ages. Even with rising costs, gift spending is up 10% from last year, averaging $661 in 2025.  

    While Canadians share a desire to give holiday gifts, there are clear differences in how generations handle their budgets.

    About 70% of people aged 55 and over plan to spend about the same on gifts as last year, using their regular income and savings. But the story is different for Gen Z and younger millennials. Of those between 18 and 34 years old, 58% expect to rely on their credit cards for gifts. Worryingly, 40% of these respondents have a higher gift budget than last year.

    Li Zhang, CPA Canada’s financial literacy leader, has some ideas about why this might be. Older adults simply have more practice managing their finances. They may be better at establishing solid savings habits, spending boundaries, and budgets. Holiday spending, Zhang points out, “is a strong example of budgeting in practice—spending based on available funds.” 

    Gen Z and younger millennials feel the same spending pressure but lack the financial experience of older adults. “Younger Canadians may feel social or emotional expectations to make the holidays memorable—adding pressure which can lead to using credit as a quick fix,” says Zhang.

    It’s no surprise that 56% of young respondents said they feel more stressed about holiday spending. 

    How a $661 purchase can turn into a $750 bill

    When you pay with cash, the transaction is complete at the till. But with a credit card, you can easily end up paying interest—and a lot of it. Interest begins to accrue on a credit card if you fail to pay off the full amount of your bill within the grace period. This is the time between the end of your monthly billing cycle and your due, usually between 21 and 30 days. The problem is, credit cards make it easier to overspend, leaving you without the funds to pay off the balance in full. 

    The interest rate on an average credit card in Canada (not including specialty low-interest products) is between 19.99% and a whopping 25.99%. To put that into perspective, a charge of $661 collecting 19.99% interest for six months would grow to a balance of around $730. On a card with a 25.99% interest rate, the total would be around $750, or nearly $90 more than the purchase price. 

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    Buy-now-pay-later (BNPL) offers may look appealing because they often have no interest or fees, but they should be used carefully. BNPL is a short-term loan that lets you split a purchase into small, fixed payments. But like credit cards, it can make overspending easy, and missing payments may lead to fees or affect your credit.  

    Budgeting for the holidays

    The best way to avoid a costly holiday hangover is to stick to a realistic budget. If you want to celebrate the holidays within your means, here are some practical tips to make sure you don’t overspend. 

    • Budget beforehand. Budgeting isn’t exactly festive but it does help you make sound financial decisions. Figure out what you can realistically afford to spend—and stick to it. If you’re a holiday elf who loves to shop, consider opening a savings account to save up for next year. Pro tip: Shop with cash to avoid snap justifications for small extras. 
    • Trim your list. If your income and savings don’t allow for something for everyone, limit who you shop for. For example, you might choose to just buy presents for kids this year. Group gifts can be affordable and meaningful. Rather than a small gift for every coworker, for example, consider a potted plant for the office.
    • Shop secondhand. Thrift stores can be a treasure trove, and they often support local services like the hospital auxiliary or a shelter. As an alternative, consider online marketplaces.

    Sticking to a budget doesn’t make you a Grinch, and it will mean a happier new year. Plan your holiday budget beforehand, prioritize spending, and get creative with your giving.

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    About Keph Senett


    About Keph Senett

    Keph Senett writes about personal finance through a community-building lens. She seeks to make clear and actionable knowledge available to everyone.

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  • Plan for financial success in 2026 – MoneySense

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    Experts say you don’t have to rush the analysis during the peak holiday season. Instead, you can split the task into smaller chunks and prioritize based on deadlines. First, think about the major changes in your life this year, said Brian Quinlan, a chartered professional accountant with Allay LLP. “What has happened to your life in terms of marriage, babies, finishing school—and what’s happened with your finances?” Quinlan said.

    Key tax moves before year-end

    The Canada Revenue Agency runs the personal tax year in line with the calendar year. That means the deadline to reduce your tax bill and contribute to most registered accounts is Dec. 31, though a notable exception is the RRSP contribution deadline, which is typically the beginning of March in the following year.

    “What do you need by year end to make sure you’ve got the best tax break or take advantage of tax incentives that you can?” Quinlan said. “You would hate to find out something in early January (that) you’ve missed something.” Medical bills, charitable donations, childcare expenses or settling investment management fees are examples that can save you a few dollars during the tax season come April if the payments have a 2025 date stamp. The higher the cumulative donations in a given calendar year, the more you benefit during tax season, for instance.

    Another popular tax strategy that is timed to the end of the calendar year is tax-loss selling, which is when money-losing investments in non-registered accounts can be sold to realize a loss which can then be used to offset capital gains, thus reducing the investor’s taxes owing.

    The deadline to contribute to your first home savings account, which allows contributions of $8,000 a year, is also aligned with the calendar year—and allows tax deductions, said Shannon Lee Simmons, a certified financial planner and founder of the New School of Finance.The contribution room, however, carries over to next year. “Anything that has a hard deadline, you should be talking to whoever the professional is in your life (before Dec. 31),” Simmons said. “Everything else can probably wait until the new year.”

    But it’s all right if you can’t make time before the year ends, said certified financial planner Jessica Moorhouse. “Don’t sweat the small stuff if there are a few tax credits that you could have got and you didn’t,” she said. “Let’s try again for next year.”

    Take stock of your finances in January

    Once the holiday madness is over and the new year is rung in, you can take the time to review your finances—including your budget, goals and net worth. “Once you’ve done all the transactions that need to happen, then we’re going into future-forward mode,” Simmons said.

    She suggested thinking about what your income for the year is likely to look like. For example, do you expect your income to be stable or is there uncertainty? “If you feel like your economic future this year is looking a little uncertain or you’re nervous about income, then I would beef up the emergency accounts,” Simmons suggested.

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    If there’s any money left over after your basic bills and living costs are covered, then think of your broader priorities. If you have consumer debt, prioritize paying it off. Or start funding an emergency account if you don’t have one, she said.

    Focus on sustainable, long-term financial planning

    If you already have a decent emergency fund and no debt, that money can then go into other long-term plans, such as retirement, paying off a mortgage or saving up a down payment, Simmons said. “But it’s the third priority,” she said. “We want to make sure that we have no consumer debt and that our emergency stuff is intact before we move on to those more exciting financial goals.”

    Then, set micro-timelines to track progress toward your goals and stay realistic. Often, people set unreasonable expectations, such as never going out for lunch or planning to contribute an exorbitant amount to their tax-free savings account every month.

    “They inevitably fail because life is expensive and then they give up on the whole plan,” she said. “If we were realistic and made a plan that is sustainable from the get-go, then the likelihood of failing is much less and sticking to it is way better,” Simmons said.

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  • The year in money: notable personal finance changes for 2025 – MoneySense

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    Interest rates and inflation

    Price growth steadied this year, allowing the Bank of Canada to push its key interest rate down by a full percentage point in 2025 to 2.25%. But with higher prices already baked-in, an increasing number of consumers struggled with debt. The annual rate of inflation slowed to 2.2% in October, the most recent available data, though pressure remained in key areas. 

    “Essential costs remain elevated as grocery prices rose 3.4% year-over-year, and food costs continue to outpace the general rate of inflation,” said Natasha Macmillan, senior business director of everyday banking at Ratehub.ca, by email. “Add in higher tariffs and supply chain costs, and everyday spending remains a challenge for many households.” 

    The higher costs have also led to more Canadians falling behind on payments. Equifax Canada said the non-mortgage delinquency rate hit 1.63% in the third quarter, up 14% from a year earlier, while average non-mortgage debt was up $511 from the year before to $22,321.

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    Taxes in 2025

    The federal government delivered a 1% income tax cut this year, reducing the lowest marginal rate to 14%. Because the cut went into place midway through the year, the effective rate will be 14.5% this year. The full cut will go into place in 2026. That means savings of about $206 this year, and a $420 tax cut next year, or a potential $840 in savings for a two-income household. “For many households in the middle-income range, this change may provide noticeable after-tax relief,” said Macmillan.

    Prime Minister Mark Carney also cancelled the hike to the capital gains inclusion rate that his predecessor had proposed. The increase would have made two-thirds of capital gains subject to income tax, but instead it remains at half. Proponents had noted that the inclusion rate would have only changed for those with $250,000 or more in capital gains and affect an estimated 0.13% of Canadians, but Carney said that halting the increase should catalyze investment and incentivize entrepreneurs to take risks. 

    For those shopping for a first home, eligibility for a GST rebate on new homes up to $1 million went into place for purchases on or after May 27. The government has still to pass the law that will allow payouts, but the rebate will save first-time buyers up to $50,000. Homes sold between $1 million and $1.5 million receive a partial rebate. 

    Carney also removed the personal carbon tax as of April 1 in his first move as prime minister, saying it had become too divisive. The removal of the carbon tax and related rebate, however, still meant many Canadians came out ahead, especially those who drive less. The government had estimated the net benefit to households was between $157 and $723 last year, depending on the province, with lower-income Canadians generally seeing higher benefits. 

    Banking

    An expanded program to offer low- and no-cost bank accounts went into effect at the start of December. Canadians can now get a bank account for no more than $4 a month from 14 financial institutions with 50% more debit transactions included as part of the fee. 

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    No-fee accounts must be available for students, Canadians 18 and under, beneficiaries of registered disability savings plans, and seniors receiving the guaranteed income supplement, while other groups could also be eligible. Newcomers can access a free account in their first year.

    The government also launched consultations on increasing deposit insurance to cover $150,000, up from $100,000, but it has yet to formally make the change.

    Artificial Intelligence

    AI has been showing up everywhere this year, for better or for worse. On a markets level, it has raised concerns about a massive speculative bubble that threatens to hit retail investors if it pops, though so far the bet on continued growth in AI has largely made them richer. 

    It has also meant some people getting potentially unreliable financial guidance, while also opening up new avenues to those who find it hard to talk about their financial problems with a human. 

    Bruce Sellery, chief executive of Credit Canada, said that while AI has created concerns about fraud and job losses, the non-profit has also seen benefits as it launched its own AI agent called Mariposa. “You can actually complete an entire credit counselling appointment, including a debt assessment, without talking to a human if you don’t want to. It’s genius,” he said by email. 

    Looking ahead to 2026

    Next year, some of the big changes expected include the potential for open banking to finally launch. The system will give Canadians more control of their financial data, allowing them to safely control multiple accounts in one place, among other benefits.

    Trade issues will also still loom as the review of the Canada-United States-Mexico Agreement approaches. Any further disruptions in trade could threaten jobs in Canada, while also putting more pressure on inflation to force the Bank of Canada to raise rates.

    As it stands, analysts expect the central bank to start to raise rates later next year or at the start of 2027, but as Bank of Canada governor Tiff Macklem said, the future is especially hard to predict these days. “Uncertainty remains high, and the range of possible outcomes is wider than usual,” Macklem said in a press conference Wednesday.

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  • How cash ETFs keep your money working – MoneySense

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    Chris Merrick, founder and owner of Merrick Financial, said there are a few different kinds of cash ETFs, but many work by essentially taking positions in high-interest savings accounts at large banks. Others invest in low-risk debt securities like bonds, known as money market ETFs. He highlighted that cash ETFs provide the ability to preserve capital while offering liquidity, unlike guaranteed investment certificates, which lock in the money for a specified period of time. “The liquidity is good. You get the interest income, which is better than a bank savings account. And often they’re kept for short-term goals,” he said.

    Merrick said cash ETFs pay monthly interest based on current borrowing rates set by the Bank of Canada. “When the rates go down, unfortunately like now, the interest rates are dropping for cash ETFs,” Merrick said.

    Erika Toth, director and head of ETF and portfolio consulting at BMO Global Asset Management, said that despite the comparatively lower yields, one of BMO’s top-selling ETFs over the past year has been one of its money market ETFs. Toth said they can offer advantages like “the ability to de-risk a portfolio if an investor wants to move out of equities or bonds,” since cash ETFs are a more conservative asset compared with more volatile stocks.

    Liquidity and returns without market exposure

    Cash ETFs can also help investors navigate times of transition.

    As investors age, Toth said the need for cash flow rises, leading some to look for safer assets to put their money into, but young clients find them useful when saving for certain financial goals. “Even younger clients—saving up to buy homes or saving up for renovations or for children’s education, it’s still a good way to make sure you’re getting paid something on your cash and the funds are readily available.” Toth said cash ETFs could help someone who recently got out of the market and wants the cash they have on the sidelines to be productive.

    Philip Petursson, chief investment strategist at IG Wealth Management, said cash ETFs can be a good option for any investors looking to earn a yield while maintaining liquidity of their cash holdings. “I think any time an investor has a requirement where they need the cash within 12 months and they don’t want to be subject to any market volatility at all, I think this would be a good place to be putting your money,” he said.

    Over the long term though, Petursson said cash can be a drag on a portfolio because of its lower returns, meaning investors will miss out on higher growth opportunities. He added that holding around 5% of a portfolio in a cash ETF can help an investor deploy into the market during periods of volatility.  

    Merrick noted one of the downsides is that they are not covered by the Canada Deposit Insurance Corp., which guarantees money in Canadian bank accounts of up to $100,000 per account type at a financial institution. He said that for some people, the security afforded by CDIC protection matters, while others are indifferent. “As the saying goes, liquidity and security don’t matter until they are everything. But I feel that the chances of needing this are fairly low,” Merrick said. 

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  • Questrade secures approval to launch Canada’s newest bank – MoneySense

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    The company, however, won’t be rolling out new offerings immediately. Kholodenko said more details will be coming in the first half of next year on what’s in store, but that they haven’t ruled any categories out yet. “We’re working toward a full suite of services for Canadians.”

    Fintechs eye credibility through regulation

    The move comes as other fintech companies also push more into the banking space, including Wealthsimple Inc. which has been expanding its offerings into chequing accounts, credit cards, and mortgages as its assets under administration have grown to more than $100 billion.

    The best online brokers, ranked and compared

    Wealthsimple has grown through partnerships, including with established banks to provide deposit insurance, rather than securing its own licence, as chief executive Michael Katchen has said many times he doesn’t believe that Canada needs another bank. But Kholodenko said he thinks going the regulatory route will help overcome the reluctance some Canadians have to switching away from the Big Six banks that dominate the sector.

    “We firmly believe that Canadians need stability, and Canadians need to feel a sense of trust,” he said. “A banking licence gives us that capability to be able to show Canadians, hey, you know, this is a properly regulated entity, and you can trust us with your life savings.”

    Questrade expands its growing financial empire

    The banking licence adds to the broad suite of offerings Questrade already has, including a trust, a wealth business, an online brokerage business, as well as its robo-advisory business and consumer loans, that together count over $85 billion in assets under administration.

    “We already serve millions of Canadians,” Kholodenko said. “And we think that we can do much more for Canadians with a banking offering.”

    In April, Spanish bank Santander also secured a licence, but it has been quiet about any expansion plans. Koho Financial Inc. is also working toward securing a bank licence.

    Questrade’s banking license comes some 26 years after Kholodenko launched the company.

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  • An update on trust tax return filings for 2025 – MoneySense

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    What is a trust?

    A trust is a legal arrangement whereby a settlor transfers assets to a trustee or trustees who hold and manage those assets for a beneficiary or beneficiaries. The trustee is responsible for making decisions for the trust and there may be very specific instructions for how the assets are to be administered, and why and when the assets can be used on behalf of or paid to a beneficiary. 

    The most common types of trusts for individuals are testamentary trusts and inter vivos trusts.

    • A testamentary trust comes into existence upon the death of an individual. A common example is if a parent or grandparent dies and leaves assets to a minor beneficiary who is too young to receive an inheritance directly. They may also be used for disabled or spendthrift beneficiaries, inheritors with substance abuse issues, or to provide asset protection from a family law perspective. 
    • Inter vivos trusts are living trusts set up during an individual’s life. A common example includes a trust to own small business shares to multiply the lifetime capital gains exemption for family members upon the sale of a company. Another example is when money is held in trust for a spouse, child, or grandchild for income splitting purposes. Seniors can also set up special trusts that can act as power of attorney equivalents and bypass probate and estate administration tax. 

    Related reading: Estate planning for singles—is a trust company the answer?

    What is a bare trust?

    A bare trust is a type of inter vivos trust that may not appear to be a trust to the untrained eye. Most trusts are created using legal documents like a will or a trust deed. A bare trust can arise simply based on the facts of a situation.

    According to the Canada Revenue Agency: 

    “In a bare trust, the separation of legal and beneficial ownership means that although trust property is registered under the trustee’s name, the beneficial owner has the rights or attributes of ownership in the property: (a) possession, (b) use, (c) risk and (d) control. Not all of these attributes will be present in every case, and some factors will be given more weight in certain cases. For example, a beneficial owner may not always have possession of the property.”

    So, in a case where one person owns an asset (legal ownership) but some or all of it belongs to someone else (beneficial ownership), this may be considered a bare trust. For example:

    • Someone may open an investment account for a child or grandchild, but only the parent or grandparent’s name is on the account. 
    • A parent may co-sign for their child’s mortgage so they can get approved by the bank and be registered as a 1% owner on the property title—even though the home is considered 100% that of the child.
    • A parent might add their child’s name onto their home’s title as a joint owner in an effort to avoid probate (despite the significant risks with this strategy) while the property technically remains 100% that of the parent.

    These are just a few examples of potential bare trusts.

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    Filing a T3 trust return

    Most trusts need to file an annual tax return called a T3 Trust Income Tax and Information Return. These returns must be filed within 90 days of the trust’s tax year-end, which is December 31 for most trusts. So, March 31 is generally the deadline for most trust returns (March 30 in leap years). If the deadline falls on a weekend, there is an extension to the next business day. 

    Income can be taxed in the trust or allocated to the beneficiaries. When the income is allocated to the beneficiaries, it must be paid to them, spent on their behalf, or documented as being owed to them in the future. 

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    A beneficiary’s income is reported on a T3 slip (Statement of Trust Income Allocations and Designations). A trust files a T3SUM (Summary of Trust Income Allocations and Designations) with all T3 slips for the trust.

    2025 tax filing requirements for trusts and bare trusts

    The deadline to file T3 returns with a December 31, 2025 year-end is March 31, 2026. 

    Trustees of bare trusts are once again wondering what their obligations are for 2025 and beyond. As it stands, some bare trusts have an exemption from filing, while others may have to file a return. 

    Exemptions may apply if:

    As it stands, the bare trust exemptions have not yet been enacted into law. This ambiguity makes planning difficult for taxpayers and tax professionals alike.

    That said, CRA recently clarified with CPA Canada’s director of tax, Ryan Minor, that they will “extend the bare trust administrative filing waiver if legislative changes are not enacted well in advance of the filing deadline.”

    It was originally proposed by the Ministry of Finance that bare trusts would have filing requirements for the 2023 tax year; however, last-minute changes meant they were not required to file for either 2023 or 2024.

    If CRA makes a direct request to file, a bare trust is required to file, however unlikely. And barring legislative progress on bare trusts, it may be that there is a third exemption year for bare trust tax return filings.

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