Not sure how to make a retirement plan? Read on…
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Who Wants to Support a Millionaire? Dec 2nd
The median American household can’t come close to affording the pension benefits of career government workers..... More »
The upside to waiting until age 70 to take CPP benefits + MORE Oct 5th
Q. I am retiring next year at age 65 and I don’t know if I should take my CPP immediately, or wait. My friends and other people I know from work took their CPP when they retired and they are telling me I should take it when I retire. Are they right? When is the best time to draw CPP?
–Jit
A. H.... More »
News for investors: Nvidia smashes Q3 expectations as AI frenzy continues + MORE Nov 22nd
Here’s a round-up of news for Canadian investors this week.
Nvidia
Metro
Questrade
Featured RRSP Accounts
featured
EQ Bank
Build your retirement savings with 1.50% interest, ta.... More »
Marriage or mortgage: Which is the better investment? Mar 30th
Weddings can be expensive, but so can many of the things that come after a wedding—like a home purchase, starting a family and saving for retirement. And so money is an important relationship issue even before a couple ties the knot.
Both weddings and home purchases can both cause people to thin.... 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 »
Should I contribute to my TFSA when I’m 68?
– moneysense.ca
iStockQ. I am 68 years old and already retired. Is there any point in contributing to a TFSA?
– Michelle
A. Any point? Why yes. There are lots and lots of points. I’ll make a few of them here.
The Tax-Free Savings Account is a great vehicle to reduce your taxes whatever your age. You’re already retired, so you’re not saving for that phase of your life. But you may have assets that could benefit from the tax shelter that the TFSA provides.
Money that you withdraw from an RRSP or a RRIF is taxed as income. But TFSA contributions are made with after-tax income, so you don’t pay a second time when you pull the money out. This means that whatever you draw from the TFSA will not impact “income-tested” benefits like Old Age Security or the Guaranteed Income Supplement.
Related: Should we tap the RRSP and feed the TFSA?
Remember, too, that you can’t contribute to an RRSP after age 71 and you’ll have to start withdrawing money from your RRIF, according to the amounts the government mandates…
When to watch out for OAS clawbacks
– moneysense.ca
Beware of the clawback!(Shutterstock)Q: I have been trying to find out how much extra income a person can earn without having to report the income while drawing OAS and CPP.
I have tried looking this up online, but every site I have been to wants to charge me just to get the answer or does not answer my question and ends up talking about other things.
I just need to know the limit they are allowed to earn before they need to report it.
—Marcella
A: By default, Marcella, you should assume that most income sources are taxable and need to be reported on your tax return. There are a few exceptions, like GST/HST credits, Canada child benefits, lottery winnings, gifts, inheritances, post-secondary scholarships for full-time students, and Tax Free Savings Account (TFSA) withdrawals.
Ask a Planner: Leave your question for Jason Heath »
There are also amounts that may end up being tax-free, like if your income is low, or if you have lots of tax credits, or on the sale of certain types of assets, like a business or farm…
