Not sure how to make a savings plan? Read on…
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How to save money in Canada: A new way that offers higher interest and more flexibility + MORE Dec 17th
If you’re saving up for a financial goal or large expense—whether it’s a vacation, future vet bills or just your rainy day fund—chances are you’re setting aside money in a regular chequing account, a high-interest savings account (HISA) or a guaranteed investment certificate (GIC). Maybe y.... More »
Want to boost your savings? Try a spending detox for the next seven days + MORE Jan 9th
Stopping the impulse to buy stuff on autopilot is one of the most valuable money moves you can make, Lesley-Anne Scorgie writes.... More »
What does the average wedding cost in Canada? + MORE Dec 26th
“But you’re getting married! You have to!” That empty statement is on the other end of everything from wedding cakes to bachelorette parties, lace veils, engagement photo shoots and selfie stations. It seems that from the very minute you are betrothed, everyone and their mother (perhaps especi.... More »
Best high-interest savings accounts in Canada 2022 + MORE Feb 20th
Generally savings accounts offer very low interest rates. So, if you want to earn on your deposits (rather than simply using your account as a temporary “holding tank” or directing to longer-term saving and investing vehicles), a savings account with a high interest is a no-brainer.
However, whe.... More »
The best high-interest savings accounts in Canada for 2023 + MORE Jun 26th
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The best high-interest savings accounts in Canada for 2023
Here are the accounts offering the highest interest rates and lowest fees.
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“Should I sell off some investments to avoid OAS clawbacks?”
– moneysense.ca
Q. I’m due to receive Old Age Security (OAS) benefits next year. I’m concerned because the dividends I receive from my investments will bring my income to $90,000, putting me in a situation where my OAS will be clawed back. Should I be selling some of my dividend stocks to stay below the threshold for clawbacks? I already pay more in income tax than I receive from my Canada Pension Plan benefits.
–Cam
A. Old Age Security (OAS) is a federal government pension payable to those age 65 and older. Unlike Canada Pension Plan (CPP), it is based on years of residency in Canada, and not work history or historical contributions. Those who have lived in Canada for at least 40 years since the age of 18 are entitled to the maximum of $613.53 per month at age 65 (as of the fourth quarter of 2019). That’s $7,363.36 annualized.
OAS can be lower or higher than the standard maximum. Those with fewer than 40 years of residency may receive a prorated pension. Recipients can also defer their OAS pension past age 65 and start it as late as age 70…
–Cam
A. Old Age Security (OAS) is a federal government pension payable to those age 65 and older. Unlike Canada Pension Plan (CPP), it is based on years of residency in Canada, and not work history or historical contributions. Those who have lived in Canada for at least 40 years since the age of 18 are entitled to the maximum of $613.53 per month at age 65 (as of the fourth quarter of 2019). That’s $7,363.36 annualized.
OAS can be lower or higher than the standard maximum. Those with fewer than 40 years of residency may receive a prorated pension. Recipients can also defer their OAS pension past age 65 and start it as late as age 70…
Employees should actively investigate their options and invest accordingly.Q. Are there books or good self-help websites on retirement planning for Canadians that you can recommend? I live in Ontario and want to retire earlier than age 60 but I’m unsure how taxes will affect me when I can (and should) begin to draw down on my registered and non-registered savings. I’d also like to understand what I can do to maximize my after-tax retirement income. Any suggestions you have would be appreciated.
–Rob
A. This is a great question. There are so many sites in the web universe for online help and resources that it’s important to confirm the background and credentials of the information you are looking at.
Before you even begin, always check and make sure you are looking at Canadian sites because sometimes U.S. and U.K. sites have similar-sounding products and advice, but they work within a different regulatory framework in those countries. So those sites aren’t as helpful to you.
I would start with Canadian federal or provincial government websites that are unbiased and well researched…
–Rob
A. This is a great question. There are so many sites in the web universe for online help and resources that it’s important to confirm the background and credentials of the information you are looking at.
Before you even begin, always check and make sure you are looking at Canadian sites because sometimes U.S. and U.K. sites have similar-sounding products and advice, but they work within a different regulatory framework in those countries. So those sites aren’t as helpful to you.
I would start with Canadian federal or provincial government websites that are unbiased and well researched…
Employees should actively investigate their options and invest accordingly.
