Not sure how to make a retirement plan? Read on…
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Corporate investments for retirees + MORE Feb 15th
I’m not using my Canadian corporate company anymore. I’m 67, delaying CPP and OAS. I have $210K in my company that I need to take out. What is the best way to do this with minimal tax?
My accountant is working with me but really doesn’t think it’s the best strategy. He has a three-y.... More »
2022 Income Tax: New tax credits for Canadians Nov 30th
It’s that time again… to get all your paperwork ready for tax season. We all know about having our T4 and registered retirement savings plan (RRSP) contribution statements ready, but what about the new tax credits for the 2022 tax filing season? What are they and how do they work? Don’t wo.... More »
Timing the withdrawal of RRSP savings to minimize your tax hit + MORE Sep 14th
Q. I’ve been fully retired since 2018, and living only on government pension (QPP, OAS and GIS). I have some RRSP and TFSA investments, and would like some help with determining when I should start withdrawing funds—and whether I will need to pay tax. I’ll be turning 71 in December 202.... More »
How annuities work in Canada + MORE Apr 18th
Annuities are life insurance products that pay a regular income to a purchaser. When you buy an annuity, it’s like buying a pension plan with a lump sum premium paid from your savings. The payments you receive include a return of your original capital and interest income on that capital. It ma.... More »
Avoiding future interest is one way to look at your return on investment May 12th
Q. I’m 47 years old and, after suffering a personal injury, have just been awarded a medical pension of $400 per month. The money is indexed annually and payable for life. I can opt for a cash-out and receive $120,000 upfront, but I’m unsure which is the smarter option.
My mortgage renews in 202.... More »
Battle brewing as Sears Canada confirms no severance pay for staff
– theglobeandmail.com
Dispute is due to insolvent Sears Canada Inc.'s underfunded pension, retiree benefits and severance for 2,900 terminated employees.
Tax facts when hiring a nanny
– moneysense.ca
Q: I have four children for whom I can claim child care expenses. I would like to hire someone to look after them who is retired and 71 years old.
1. She no longer needs to contribute to CPP, correct?
2. I don’t need to contribute for her as her employer, correct? Is the same correct for EI?
3. How will she be taxed on that income?
—Karina
A: Child care can be costly. Given you have four kids who require care, I can imagine a nanny is probably a less expensive option for you than day care, Karina.
As you may know, you can deduct child care expenses, including a nanny, against your eligible employment or self-employment income. You can claim up to $8,000 for each child aged six or under, $5,000 for each child aged seven to 16 and $11,000 for each child who qualifies for the disability tax credit.
A 71-year old does not need to contribute to the Canada Pension Plan (CPP), nor do you have to make contributions on their behalf. CPP contributions are required by default for any salary paid to an employee who is age 18 to 70 unless they meet certain conditions…
