Personal Savings getting you down? There are always smart ways to increase your savings.
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Amar earned $117,799 last year. But he is a freelance photographer with an unpredictable income. How can he sock away more savings? + MORE Oct 17th
Amar is 31 years old and lives in an affordable shared apartment. How can he increase his savings when his monthly income is never the same?.... More »
Audit-proof your side hustle + MORE Nov 29th
If you have joined the ranks of the self-employed, you’re in good company: According to Statistics Canada, 2.9 million Canadians run their own business. That’s 15% of the population, and the number is growing. Don’t forget, though, that with your new status comes a new relationship with the Ca.... More »
Capital gains when selling property to family + MORE Mar 20th
Do I have to pay income tax if I inherited a property jointly with my sister and she bought me out for less than half the appraised value of the property?
—Johanna
Capital gains and transferring property between family
Asset sales between family members can be tricky to facilitate at a family leve.... More »
RESP investing for busy parents + MORE Oct 17th
Saving for university isn’t always top of mind when you’re a busy new parent, knee-deep in diapers. Add the steep cost of daycare along with the stress of trying to juggle work and toddlerhood, and setting aside funds for your child’s post-secondary education can feel like an insurmountabl.... More »
Top Ways to Save Money As a New Parent + MORE Jan 18th
As a new parent, it’s very easy to go overboard on spending. After all, who wouldn’t want to shower an adorable new human with an influx of cute items? The truth is, you can spend as much or as little as you want and still have all the necessities for your little one. These days, there are so m.... More »
Choosing the right executor
– moneysense.ca
Q: I have to choose an executor for my will. What qualities should I look for and should it be a family member?
—Nick P., Waterloo, Ont.
A: Choosing executors is an important decision everyone needs to make. Costly mistakes can hurt your family and your money. And getting rid of rotten or hostile executors is difficult and expensive. So you need to protect your loved ones from bad executors. They can rob your estate, destroy your family and cause costly legal battles.
Why? Because bad executors can waste your life’s savings. Trustworthy family members, even those without experience, are good choices. Why? Because family members are:
Also beneficiaries;
Won’t ask to be paid;
Will act efficiently and economically.
And for tax reasons, your executors need to reside in Canada.
10 tips for choosing an executor wisely
Family comes first—unless you have good reasons to avoid them. Still, make sure you ask them if they want the job.
You name executors in your will, which is a legal document you sign…
RRSPs, DCPPs, CPP, oh my!
– moneysense.ca
Q: I’m 56 and would like to retire at 60. I have a defined contribution pension plan. Would it be wise to draw RSP only until 65 and leave CPP and DCP to grow?
—Daniel
A: I find there can be a lot of confusion around Defined Contribution (DC) pension plans, so let’s seek to clarify some things, Daniel.
First off, you ask about whether you should start to draw from your RRSP at age 60 when you retire. You don’t have to take any withdrawals before age 72, at which point a minimum annual withdrawal is required based on a percentage of the account value. Sometimes, you need to take withdrawals early because you simply need the cash flow, but sometimes, even if you have other non-registered savings or investments, early RRSP withdrawals can be wise to smooth your income and tax payable during retirement.
I think it’s important to target the least amount of lifetime tax as opposed to the least amount of tax today without regard for the future. This is particularly important when you might not only be paying more tax with delaying RRSP withdrawals, but also losing entitlement to government benefits like Old Age Security (OAS) and Guaranteed Income Supplement (GIS)…
How to Save for Your Golden Years … Right Now!
– ratesupermarket.ca
Saving for retirement is not exactly a sexy subject to discuss. People of all ages don’t tend to get excited or worked up about how much they’re putting aside each month for their future. Honestly, if I were to ask random people on the street right now, they could probably easily tell me the details of Brangelina’s divorce, yet they might have no idea how their retirement portfolio is doing.
Sounds a bit crazy, but the truth is most of us aren’t paying much attention to our savings. But what we have to remember is the lifestyle we have during our golden years will depend greatly on how much money we’re putting away now.
If you don’t have enough saved, you might have to rely on your family or even the government to get through retirement. Or you may decide to continue working past the age of 65. I’m not sure if those are the best plans, so here are some tips to help ensure that you won’t be working until the end of your life.
Start to Save Now
In an ideal situation, you start saving money steadily from a young age all the way until you retire…
