The following is an easy-to-read calendar of tax and planning related tips, to-dos, opportunities and  information to help clients save money.

JANUARY: Savings & Credit

An emergency fund equivalent to approximately three months of your income is important in case of job loss or to pay unexpected bills. Money Market Segregated Funds or High Interest Accounts similar to the Manulife Advantage Account are highly liquid and very secure - ideal for this sort of investment.

Most companies rely on your credit report when deciding whether or not to grant a loan or open an account. Ever wondered about what's in your file and if it's accurate? You may obtain a copy of your reports free of charge from Equifax (1-800-465-7166) and Trans Union (1-800-916-8800).

FEBRUARY: RRSPs

Each year, you're allowed to invest 18% of your income and receive a deduction for whatever amount you contribute, which in turn can generate significant tax savings. For example, a person in B.C.earning a salary of $55,000 and who pumps the maximum into his RRSP can expect a tax refund of about $2,985 in 2008. (Note: results vary according to province).

The maximum RRSP deduction limit was $19,000 for 2007 and will be $20,000 for 2008. However, if you did not use your entire RRSP deduction limit for the years 1991-2005, you can carry forward the unused amounts. Therefore, your RRSP deduction limit for 2008 may be more than $20,000.

The amount of your contribution room can be found in your Notice of Assessment letter you received from the Canada Revenue Agency (CRA) after you filed your last tax return. For more information, please see our Investments section.

MARCH: Insurance

A Guaranteed Insurability Option (GIO) on a life insurance policy allows the insured person to purchase additional amounts of insurance at a later date regardless of their state of health. Purchasing a small life insurance policy with GIO is an easy way to make sure that your child will always have access to insurance in the future.

Critical Illness (CI) insurance is popular in the U.K. and gaining ground here as Canadians worry about the state of the healthcare system. In the event of a serious illness, CI pays a lump-sum benefit, allowing the individual to take time off or to seek treatment in a private U.S. clinic rather than face lineups here. For more information see our Critical Illness section.

Rather than taking out Mortgage Insurance through your lender, consider obtaining your own individual life insurance policy. While the bank insists on being named as beneficiary on their creditors' group coverage, an individual policy will allow you to name whomever you choose, such as a your spouse or your child. Owning your own policy also allows you to shop for the best rate — should you change lenders, you won't have to reapply for coverage and submit new medical evidence. For more information see our Mortgage Insurance section.

APRIL: Taxes

If you run a small business and your spouse helps out, you may be able to minimize taxes by paying him/her a salary. Splitting income between two people could reduce the amount of taxes payable. A B.C. resident who earned $60,000 in 2007 would owe about $13,060 in taxes, while two people each earning $30,000 would only owe a combined amount of about $8,922. That's $4,138 savings!

Bonds, T-bills and GICs are conservative investments well suited to someone looking for a regular income. Unfortunately, interest income is taxed at the highest possible rate. Those who want to receive income but also want to minimize taxes may wish to consider investing in dividend-paying stocks or dividend funds, because dividends are taxed at a lower rate.

If you've misplaced tax documents, you can obtain a personal income tax information summary from the CRA that will outline important information about your particular tax situation, including historical capital gains and loss transactions, capital loss carry-forwards, as well as past RRSP contributions and current contribution limits. The CRA Web site is www.cra-arc.gc.ca.

MAY: Homes & Mortgages

So you want to buy a home, but don't have the money for the down payment? If it's your first home, the national Home Buyers' Plan allows you and your spouse to each withdraw up to $20,000 from your RRSPs without penalty. Amounts withdrawn under the plan must be repaid over the next 15 years, at a rate of at least 1/15th of the original balance per year, starting the second year following the year you made your withdrawal. 

Lenders look at a number of criteria when evaluating a mortgage application, usually relying on one or two key ratios to determine whether the prospective homeowner has the financial ability to make the mortgage payments. Generally, your mortgage payment, property taxes, heating, hydro and condo fees (if applicable) should not amount to more than 32% of your monthly income. 

Employees who work from home most of the time may be able to write off a portion of their rent, hydro, heating and maintenance costs. You'll need to have your employer complete a T2200 form (available from the CRA). Those who are self-employed may qualify to deduct a  portion of their mortgage interest as a business expense. See: Business expenses

JUNE: Health Coverage

Operating your own company and wish you had the sort of health and dental insurance available to people who work at large corporations? Many small business owners and independent contractors are unaware of the fact that this coverage is well within their reach. Provided at least 50% of your net income comes from self-employment, and you offer all full-time employees equivalent coverage, the premiums you pay for individual health insurance coverage can be claimed as a fully deductible business expense. For more information, see our Group "Employee" Benefits and PHSP sections.

Before you head off on that well-deserved vacation, make sure you have appropriate travel insurance in place. If you were to require treatment outside of Canada, only a portion of the costs would be paid by your provincial health plan, meaning that you could be liable for medical bills in the thousands of dollars. For more information and to run your own quote, see our Travel Insurance section.

Life insurance will protect your family in the event of your death, but what if your illness simply leaves you unable to work for an extended period of time? In most cases, a personally owned disability insurance policy will provide you with 66% of your regular income — tax free — should you become unable to work at your regular occupation. For more information, see our section on Disability Insurance.

JULY: RRIFs and Annuities

If you have or will turn 71 this year, you've have some important decisions to make. Regulations require that you convert your existing RRSP into either a RRIF - Registered Retirement Income Fund or an Annuity before the end of the calendar year. Failure to do so could result in deregistration of your RRSP and a huge tax bill. So, don't wait until December - start planning your retirement income now.

RRIFs allow you to retain control over your capital and decide how it's invested. Withdrawals can be made whenever and in whatever amount you choose. Annuities offer a guaranteed income for the rest of your life and eliminate the risk of outliving your capital. Your goals, personality and lifestyle will determine whether just one option or a combination of the two is right for you. For more information, click on these links to RRIFs and Annuities, found in our section on Investments.

AUGUST: Pensions

If a previous employer made contributions to a retirement plan on your behalf, you may have what's known as a locked-in retirement account. The funds, however, are only "locked-in" in that you can't make withdrawals - that doesn't mean that you have to leave them in a weak investment or remain with original plan provider. You are free to invest these funds, and with whomever you choose. For details contact: Ken MacCoy, RHU

Did you know that it's possible to split Canada Pension Plan benefits? If one spouse is eligible for CPP payments totaling $5,000 a year and the other has never worked, those benefits can be shared evenly. Rather than having all of the income taxed in one person's hands (and therefore at a higher tax rate), each would receive $2,500. Visit the Human Resources Development Canada Web site at http://www.sdc.gc.ca/en/isp/cpp/cpptoc.shtml for more information.

SEPTEMBER: Education

Introduced in 1998, the Lifelong Learning Plan allows participants and/or their spouses to withdraw up to $10,000 a year from their RRSPs (to a maximum of $20,000 over a four-year period) in order to put themselves and/or their spouses through school. The program must be full-time and given by a qualifying educational institution. Repayments can be spread out over 10 years, and must begin in either the second consecutive year which the student cannot claim the education credit for, or in the fifth calendar year after the year of the first withdrawal.

Establishing an "in-trust" account for your child or grandchild is an easy and tax-efficient way to transfer wealth. Although interest and dividend income will be attributed back to the contributor, capital gains are taxed in the child's hands. Be warned, however, that once children reach age 18, they can claim ownership of in-trust funds and do whatever they please.

To encourage Canadians to save for their children's education, the government introduced the Canadian Education Savings Grant (CESG) several years ago. Anyone who contributes to a Registered Education Savings Plan (RESP) will receive a grant of 20%, up to an annual maximum grant of $400 and a lifetime maximum of $7,200 per beneficiary. If the child doesn't go on to college or university, the grants must be repaid.

The government has introduced changes that will increase the Canada Education Savings Grant from 20% to 40% on the first $500 of RESP contributions each year for families with a net income of $35,000 or less. A Canada Learning Bond (CLB) has also been created, payable to children who qualify for the National Child Benefit supplement. Families will receive $500 at birth, then $100 every year for the next 15 years.

OCTOBER: Investments

In the past, regulations limited the amount of foreign property you held in your RRSP to a maximum of 30% of your portfolio's book value. The 2005 federal budget removed these restrictions, and you are now free to invest however you choose. However, it's important to keep political and currency risk in mind when investing abroad!

What's the difference between a balanced fund and an asset allocation fund? A balanced fund must stick to a specific asset mix (e.g., 50% equities, 40% bonds, 10% cash), while an asset allocation fund allows the manager more discretion, allowing him to weight the portfolio as market conditions warrant.

NOVEMBER: Wills and Estates

If you die without a will, provincial laws will determine who gets your property - often leaving grandchildren, parents, brothers and sisters without anything. The court will have to appoint an executor and/or trustee, which can be a time-consuming and expensive process. You only get one chance to do it right when you make your will, so rather than relying on cookie-cutter will kits, see a lawyer to have a will properly drafted.

When you make your will, you will have to appoint an executor to wind up your affairs. You should choose someone who is knowledgeable, trustworthy and, if possible, located in your province, since they may be required to travel to your home and post a bond with the court in order to act as your executor.

If you have specific instructions about how you wish to be cared for in the event of a serious illness, you should consider making a "living will," also known as a "healthcare directive." This document will outline what medical procedures you do, and do not, wish to have should you become unable to express you wishes. Some people, for example, may stipulate that they do not wish to remain on life support if there is no hope of recovery.

DECEMBER: Year-End Considerations

If you're thinking about making a spousal RRSP contribution, consider doing it in December instead of waiting for February. Spousal RRSPs are governed by what's often called the "three-year rule." If the spouse takes funds out of the RRSP in the same year the contribution was made or within the following two calendar years, the withdrawal will be attributed back to (and taxed in the hands of) the contributor. By contributing in December rather than in January or February, your spouse will be able to withdraw the money a year earlier.

Thinking of buying a mutual fund this month? If the investment is being made outside of your RRSP, you may have to worry about additional taxation as a result of year-end distributions. Mutual funds have to distribute income to unit holders by the end of the year, meaning that you could face a year's worth of taxable income even though you've only been in the fund for a few weeks. You may be better off postponing your non-registered mutual fund purchase until January.