For most Millennials, the thought of retirement can seem like light years away. While a lot can and will happen between now and then, ignoring it or putting a plan on the back burner is a major mistake. In a constantly evolving society, Generation Y faces unique challenges compared to those faced by previous generations. For this age group (18- to 34-year-olds), gaining an understanding of their financial situation and potential hurdles is critical.
To Split or not to Split…That is the question.
Income Splitting Strategies
So what is Income Splitting, and who is eligible to quality for the benefit?
Income Splitting is a way for families to split up their income so that if one spouse earns more than the other, the higher-earning spouse can allocate some of their income to their lower-earning spouse’s tax return. Since our tax system has graduated tax brackets, Income splitting is a great strategy to pay less household tax, and keep more money in your pocket! Read more