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“What type of content am I reading?” + MORE Nov 23rd
You can always tell by how an article is labelled what type of content you’re reading. The label appears not only on the article itself, but anywhere it appears on the website.
No label. If the only label you see is a topic tag, such as Investing or Retirement, that means you’re reading a purely.... More »
Chicago Has Another Bond for You Aug 19th
The city may try to paper over its pension woes with new debt..... More »
Stock news for investors: Canadian Natural boosts quarterly dividend after massive Q4 profit Mar 7th
Here’s a round-up of news for Canadian investors this week.
Canadian Natural Resources
Pet Valu
George Weston
Canada Packers
Featured RRSP Accounts
featured
EQ Bank
Build yo.... More »
Can you make a transfer from an RESP to a spouse’s RRSP? Sep 1st
Q. I have an RESP account that I plan to wind down—and I have very little RRSP contribution room, but my wife has quite a lot. I just read this article you wrote for MoneySense about transferring money from an RESP to an RRSP. I thought it was permissible for a subscriber (that would be me in this.... More »
What time of year should you retire? Sep 7th
Is there a better time of the year to retire based on tax implications: December 31 versus June 30 versus January 30? —Laf
The best date to retire for tax purposes
For most Canadians planning their retirement, tax isn’t the primary factor, Laf. However, there are instances when tax can com.... More »
How to boost your returns in retirement
– moneysense.ca
ShutterstockWhat’s the single biggest fear retirees face? Undoubtedly it’s the prospect of outliving their money. And as this column has pointed out before, retiring in this second decade of the 21st century poses challenges for just about any healthy person who lacks an inflation-indexed employer-sponsored Defined Benefit (DB) pension plan. We’re living longer and interest rates are still mired near historic lows after nine long years.
Any financial advisor will tell you the solution to this dilemma is to stop reaching for minuscule “guaranteed” investment returns from instruments like GICs or bonds, and instead embrace the higher risks—but potentially higher returns—of the stock market. Historically, equities have generated on average a 10% annual return, which means you should be able to double your capital in a matter of seven or eight years.
READ: The safe, unloved, amazing GIC
It’s in this challenging environment that I recently read two recently published books that tackle these themes head on…
Planning through salary swings
– moneysense.ca
Q: My income fluctuates quite widely from year to year. How do I plan for this and how do I handle the tax implications of such income swings?
—David
A: Yours is the challenge of many a commissioned salesperson or business owner, David. The thought of a stable salary and defined benefit pension plan may be appealing to some, but others, like you – and me – prefer a little more control over destiny. That control doesn’t always mean stability, however.
For starters, I think everyone should have a reserve or emergency fund, particularly those whose jobs are riskier or whose income is variable. An emergency fund doesn’t necessarily mean having six months of expenses sitting in a savings account earning pennies in interest. It could mean a healthy TFSA balance that includes an allocation of conservative, liquid investments. It could mean a secured line of credit available with a low interest rate.
Ask a Planner: Leave your question for Jason Heath »
Having tens of thousands of dollars sitting idle for your whole life may be comforting, but it could usually be put to better use invested in an RRSP or TFSA or used to pay down debt…
