While most tax planning should be done on an ongoing basis for maximum benefit, there are still some things that you can do to ensure that when you file your 2009 return, you pay the least amount of tax legally possible. Following are my top 10 tips to save money on your 2009 return.

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Recently one of my friends and an exceptional advisor in Sarnia, Jeff Burchill, wrote to me irrate about some things said in an article by David Trahair. Essentially, Trahair says makes one very bold, controversial and contrarian statement like "Put your hard-earned savings only in ultra-safe GICs -- and rest assured that you are earning returns on par with those in the stock market." Trahair wrote a book called Enough Bull: How to Retire Well without the Stock Market, Mutual Funds, or Even an Investment Advisor because he was tired of hearing from people who have suffered financially because they followed "traditional" retirement planning advice. He believes the problem is compounded because people believed they had to invest in the stock market to make the illusive 8-10% a year return to build their retirement savings quickly. As a result, many have been devastated, especially many seniors that have little time to make up for their losses.

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The Old Age Security (OAS) program is the cornerstone of Canada's retirement income system. It includes a basic pension that goes to almost all people 65 or older who have lived in Canada for at least 10 years over the age of 18.

The amount of OAS you receive depends on the number of years you live in Canada after you turn 18. Generally, you receive a full pension (Currently the maximum OAS income is $516.96 per month) if you live in Canada for at least 40 years after age 18. If you live here for less time, you may qualify for a partial pension. With a partial pension, you'll receive 1/40th of the full pension for each complete year you live in Canada after you turn 18. OAS is indexed for inflation every January, April, July and October.

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This is the question we all find ourselves asking, especially when we think about retiring - never mind the month to month expenses. The task of finding out if your plans are simply on track is for most is a daunting task. Here is a simple and quick and easy way to get started.

We've developed an number of simple online calculators and worksheets to help you get started - Using the principle that being close is good enough, and using approximations is a great starting point. You can get more precise if you wish next time - if the numbers indicate problems!

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Canadian seniors expected to need extra care will nearly double and grow to 8 million by 2026, according to Statistics Canada, more Canadians will be faced with the responsibility of providing care for their aging parents. Caring for an elderly parent could affect every aspect of your life – including your finances. But what if, as their caregiver, something unexpected happened to you and you passed away?

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Question: If the book value of my RRSP is more than its actual cash value now, would the funds still be taxable if I withdrew/collapsed the fund?

Answer: Every amount that is withdrawn from an RRSP is taxable as income in the year it is withdrawn. There is no allowance to reduce this taxable amount for investments that have lost value while in the RRSP. If an RRSP contribution was made for $5,000 and subsequently redeemed, tax would be payable on the market value of the investment at the time of the redemption whether it was $6,000 or $3,000.

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