Not sure how to make a retirement plan? Read on…
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Can I receive a share of my ex’s military pension? + MORE Dec 16th
Q: I was married to a Navy man, went through mediation and it was in our divorce settlement that I was entitled to receive half of his military pension. I thought I had to wait until he turned 65 to be entitled to half but I’ve been told that as soon as he left the Navy he was getting his pension..... More »
Do you need a planner if you’re a DIY investor? May 23rd
In today’s digital age, there’s an increasing number of Canadians who choose do-it-yourself investing. Online brokerages and low-cost trading platforms allowed for a new style of investing to emerge: a new generation of DIYers. We’ve seen a shift in the financial planning industry. Well, self-.... More »
The best RRSP investments 2022 Jan 11th
A registered retirement savings plan (RRSP) is an investment that is registered with the Canadian federal government. RRSPs are often described as being “tax-advantaged.” That means you don’t pay income tax on the amount you are contributing to an RRSP, in the year you earn that contribution. .... More »
What to consider before transferring RRSP money to a company pension plan + MORE Jun 8th
Q. A few years ago, I joined a public sector employer with a hybrid defined-benefit, minimum-guarantee pension plan that will allow me to move RRSP contributions made elsewhere, into the employer’s plan.
I have been told that the transferred money would have to remain locked-in until I retire or l.... More »
Should Pete sell mutual fund to pay down the mortgage? + MORE Mar 24th
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Q. I have $103,490 left on my mortgage and I pay $325 bi-weekly on it @2.89% fixed rate (mortgage is being renewed shortly). I have the ability to pay off up to 15% ($18,700) of the original mortgage annually in a lump sum without fees. Should I pull money out of my mutual funds (averag.... More »
Using real estate vs. RRSPs to fund retirement
– moneysense.ca
Q: We have three rental properties in Vancouver (one is mortgage free) and own our own home (mortgage free) in the Fraser Valley.
We are both retirement age.
Should we use RRSP/ RRIF or sell the rental properties?
We have been told by different advisors conflicting opinions.
—Lee
A: Congratulations on your upcoming retirement, Lee. If you’ve owned those rental properties for more than a couple years, no doubt you’ve benefited nicely from Vancouver price appreciation.
I’ll tell you right off the bat that this isn’t one of those questions where there is an easy, obvious answer. What you should do is a personal decision, but I’ll try to highlight some of the considerations.
Ask a Planner: Leave your question for Jason Heath »
Selling real estate is expensive. Of course, there’s the obvious real estate commission payable, which is generally 7% on the first $100,000 and 3% on the balance of the sale price in BC. Some agents charge more or less. Some agents do cash back. And companies offering discounted commissions as low as 1% have gained popularity in cities like Vancouver where prices are high…
What to expect when receiving OAS at 65
– moneysense.ca
(Shutterstock)Right after tax season I received in the mail one of those little brown envelopes from the federal government. No, they weren’t after me for more tax money but the opposite: it was from Service Canada and they were proposing to send ME money as of my next birthday. The letter informed me that having met three criteria, I was eligible to receive the Old Age Security (OAS) pension as of my 65th birthday in April 2018.
Better yet, I didn’t even have to apply: if I didn’t respond, they would send a cheque to the address they had on file. The letter says if their three facts about you are correct “and you wish to receive your OAS pension at age 65, you do not need to return this letter nor contact us. We will send you more information and your payments will begin in the month following your 65th birthday.”
Sweet! Money for nothing and no paperwork or decision-making required! But of course things are seldom that easy. If I wished to defer the pension (for an enhanced return, which grows the longer you wait, by 0…
