How to go about securing the best Retirement Plan in Canada.
Latest News
Stock news for investors: Goeasy shares plunge nearly 60% after lender suspends dividend + MORE Mar 14th
Here’s a round-up of news for Canadian investors this week.
Goeasy
Algoma Steel
Transat
RBC
MDA Space
Empire
Featured RRSP Accounts
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EQ Bank
Build your retirem.... More »
Why GICs are a good addition to an RRSP or a TFSA + MORE Feb 8th
It’s tax time again, which means Canadians may be thinking about tax-smart ways to invest to reduce their tax burden next year. Chances are, you’ve seen and heard more about guaranteed investment certificates (GICs) in recent months than ever before, and there are concrete reasons why. Read on t.... More »
CPP Fund grows to $366.6B at end of June Aug 11th
Canada Pension Plan Investment Board says its main fund grew to $366.6 billion of net assets at the end of June, up $10.5 billion from the end of March..... More »
Should Kathy take monthly payments or the commuted value of her pension? + MORE Jun 15th
Q. I am torn about making a key financial decision in my life. First, a little about myself. I worked for about seven years (actually, six years and 360 days) as a teacher in the Arctic. I resigned this year and have returned to the “south.”
Now, I have about a year to decide whether I cash out .... More »
What’s the right retirement asset mix if you have a DB pension? + MORE Mar 10th
(Shutterstock)
Q: When calculating your asset mix can you include a pension as part of your bond/cash holdings in a portfolio with a 60% equity, 20% bond and 20% cash mix? If you had a pension that was paying $50,000 a year this would be equal to a million dollar GIC at 5%.
—B. McLeod
A: Hi B. Mc.... More »
Using RRSP money for a renovation
– moneysense.ca
Q: My daughter and my husband bought a $400,000 property three years ago near Midland, Ont. My husband earns $59,000 annually and my daughter $16,000 (self-employed). They want to renovate the kitchen and eventually sell the home to make a profit on it. The mortgage is $319,000. My daughter wants to get a $30,000 loan from the bank but I don’t think they’ll give it to her. Right now, she has an RRSP with $39,000 in it. Should they use the RRSP money to renovate? When they sell the house they’ll likely realize a $70,000 profit, so is it worth it?
—Janet P.
A: Based on the home value and the mortgage balance, a loan or line of credit might not be approved at this point because the equity in the property is not yet high enough. (You are at 80% equity now). The lenders will also take both your daughter and husbands’ incomes into consideration—and not just the amount of income, but the source of the income as well.
Since your daughter is self-employed she will need to show the lender her past two years of tax returns to establish if she can afford the repayment of a loan…
Can we retire with $6,500 a month?
– moneysense.ca
Randy and Sandra LukeUp until last year, Sandra and Randy Luke were focused on paying off their mortgage. With that goal behind them, they’re ready for their next challenge: to retire in 10 years. But can they save enough to build a portfolio capable of delivering a monthly net income of $6,500 in retirement?
The current situation
Randy Luke, 51, and his wife Sandra, 49, live in Winnipeg. Randy is in the printing business and Sandra is a healthcare instructor, but come 2027 they both hope to have a different job title: retired.
“We felt we had to have a goal and 10 years from now for full retirement is a good time,” says Randy. “Sandra has a defined benefit pension plan at work and that’s when she reaches her factor 80 date for a full pension.”
The couple’s finances are in good shape after paying off their $475,000 home a year earlier than planned. Currently, they have a combined $720,000 in their TFSAs, RRSPs, and other savings. The couple doesn’t have children, which means all of their savings can be put towards their retirement…
