Not sure how to make a retirement plan? Read on…
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Is semi-retirement stressful? You bet—here’s what to do about it Jul 27th
One of my semi-retirement philosophies is that reducing stress can sometimes be more important than maximizing revenue. Assuming you’re self-employed in semi-retirement, as I am, you may find yourself juggling multiple clients and conflicting demands on your limited time and energy.
The topic o.... More »
How to maximize your last-minute RRSP contribution + MORE Jan 26th
Mark your calendars: the deadline for Registered Retirement Savings Plan (RRSP) contributions for the 2020 tax year is March 1, 2021. But before you rush to deposit your money in a GIC or high-interest RRSP savings account at a local bank and call it a win, you should know there are other options th.... More »
Making sense of the markets this week: August 28 + MORE Aug 31st
Kyle Prevost, editor of Million Dollar Journey and founder of the Canadian Financial Summit, shares financial headlines and offers context for Canadian investors.
Banking on stability and caution
Canadian investors love their banks. Year in and year out, banks provide dependable dividend growt.... More »
The true price of financial advice + MORE Oct 28th
(Freeimages.com / Rober Owen-Wahl)
Many people worry about running out of money in retirement and some work longer than they would like to avoid such a possibility. Others take on part-time work after officially retiring to make ends meet.
It might be possible to avoid slaving away by learning how t.... More »
Reducing risk in an RESP: How to invest as your kid approaches college or university + MORE Oct 5th
If you’ve opened a registered education savings plan (RESP) for your child or grandchild, congratulations. You’ve taken the first step towards financing their future college, university or trade school education. And now your family can start benefiting from generous government grants worth thou.... More »
Should I buy my grandkid an RRSP or RESP?
– moneysense.ca
Q: Can an aunt, uncle or grandparent open an RRSP or RESP for a grandchild, niece or nephew as a gift?
—Elizabeth Adolph, Lillooet, B.C.
A: The acronyms “RRSP” and “RESP” may differ by only one letter, but the plans themselves are very different. The RRSP is for retirement savings and you cannot open one for a child. That’s because RRSP contribution room is based on a person’s earned income. Once she has some, she’ll file a tax return and start building that RRSP room, but you can’t do it for her. However, you certainly can open up an RESP for a child’s education savings, whether they are related to you or not. Your gift will qualify for the Canada Education Savings Grant, which amounts to 20% of the first $2,500 you contribute, up to $500 each year. I’d recommend that you coordinate with the parents as there is a limit on total contributions of $50,000 and if you go over that amount you’ll face a penalty. The parents may also have other more immediate financial needs that would benefit the child, such as helping to pay for activities or tutoring…
—Elizabeth Adolph, Lillooet, B.C.
A: The acronyms “RRSP” and “RESP” may differ by only one letter, but the plans themselves are very different. The RRSP is for retirement savings and you cannot open one for a child. That’s because RRSP contribution room is based on a person’s earned income. Once she has some, she’ll file a tax return and start building that RRSP room, but you can’t do it for her. However, you certainly can open up an RESP for a child’s education savings, whether they are related to you or not. Your gift will qualify for the Canada Education Savings Grant, which amounts to 20% of the first $2,500 you contribute, up to $500 each year. I’d recommend that you coordinate with the parents as there is a limit on total contributions of $50,000 and if you go over that amount you’ll face a penalty. The parents may also have other more immediate financial needs that would benefit the child, such as helping to pay for activities or tutoring…
Benefits like dental care and glasses are taken for granted while you work. In retirement is it better to pay out of pocket for them, or buy insurance?
