There are plenty of retirement plan options in Canada! Stay on top of the best plans right here.
Latest News
When are tax-deferred and tax-free accounts actually taxable? + MORE Feb 9th
Q. I saw your blog online; thank you so much for the wonderful job that you are doing—it was very informative! That motivated me to start investing too, but now I have a couple of questions. I understand that there is tax on US dividends in TFSA, do we pay tax as well when we sell:
U.S. stocks in.... More »
How to stay the course with your retirement plan during market volatility + MORE Apr 11th
Three days of wild market volatility sparked by U.S. tariffs is enough to cause any investor stress, but for those in retirement, the plunge can be extra difficult.
Markets have taken a nosedive after U.S. President Donald Trump’s announcement of sweeping global tariffs last Wednesday (April .... More »
Is the Couch Potato a good choice for larger portfolios? + MORE May 27th
Q: I have a portfolio of just over $400,000 with an advisor in active mutual funds with fees between 1.75% and 2.80%. My investment firm is now recommending a pooled fund that is 0.50% cheaper. I also have a self-directed TFSA, where I use the TD e-Series index funds. Is the Couch Potato appropria.... More »
Stock news for investors: Canopy Growth to acquire MTL Cannabis in $125-million deal + MORE Dec 20th
Here’s a round-up of news for Canadian investors this week.
Canopy Growth
Blackberry
Transat
Featured RRSP Accounts
featured
EQ Bank
Build your retirement savings with 1.50% in.... More »
Ontario loosening solvency requirements for defined benefit pensions + MORE May 20th
Ontario is changing rules on workplace defined benefit pensions, including considering them to be solvent when they are 85 per cent funded.
The provincial Liberal government announced today that it would introduce legislation in the fall to make that change and others that it says will help keep def.... More »
Should you wait out an investment loss?
– moneysense.ca
Q: My $50,000 investment in gold is now worth $27,000. Over the last three years I haven’t had the stomach to invest in anything more. I’m 50 and my earning power is running out. Do I stick with the gold to prevent locking in a big loss or sell and try to make it up?
—Jordan, Canmore, Alta.
A: It’s hard for any of us to admit when we’ve made a mistake, and it’s even more difficult when a blunder costs us a big chunk of our retirement savings. But don’t compound your error by hanging on to an investment you never should have bought in the first place. Doing so is what gamblers call throwing good money after bad.
.cbR{box-sizing:border-box;display:block;width:100%;margin:1em 0;border:1px solid #bbb;padding:.5em}@media (min-width:480px){.cbR{width:250px;margin:0 0 1em 1em;float:right}}Sell off your losers, claim a capital loss
As it stands, you’ll need an 85% return to turn your $27,000 back to $50,000. That’s just over 13% compounded annually for five years, or about 6…
Am I on track to retire in 10 years?
– moneysense.ca
(Photo by Amanda Skuse)The current situation
Shannon Jimenez, 47, lives in Chilliwack, B.C. with her husband Hector, 55. She’s a part-time customer service rep while Hector is a manager. “We’ve spent the last 25 years building up the equity in our home and in our Mexican rental property so savings are slim,” says Shannon. Right now, the couple has $45,000 in RRSPs earning 3.5% annually after fees. Neither has an employer pension but they are saving $1,000 a month from their $95,000 household income (which includes $10,000 in rental income). They also put $1,400 per month towards their mortgage—an amount that will be reduced to $700 in two years, allowing them to increase their savings to $1,700 per month for the next eight years. “We hope that by beefing up our savings in two years we can retire in 10 years on $40,000 net per year,” says Shannon.
The verdict
Janet Gray of Money Coaches Canada says the couple is on track to retire in 10 years, but only if they sell their Mexico rental property when
Hector reaches age 75…
7 tips to plan a smarter retirement
– moneysense.ca
This cheat sheet on retirement planning tips is part of our series on the basics of personal finance as part of Financial Literacy Month. On Friday, MoneySense will have a special Facebook Live testing other magazine editors on their money sense. Tune in live at 3 p.m. on our Facebook page to watch us put them to the test. Follow us and participate if you think you know your stuff.
1. Face the facts
Saving for retirement is always a challenge. But a number of factors have added up in recent years that make it even tougher on those entering or preparing to enter retirement. Jonathan Chevreau, Retired Money columnist for MoneySense, says the strength and predictability of defined benefit pensions (which pay out until death based on your earnings) is disappearing, as corporate plans move to defined contribution pensions (which build wealth based on employee and corporate contributions but do not pay out based on guaranteed formulas). That’s hard enough, Chevreau argues, but where “financial oppression” really takes hold is that retirees are stuck with bond yields that are sitting close to zero, which means nest eggs stop growing as fast and have to be drawn down a lot faster than they were for past generations…
