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Making sense of the markets this week: October 15, 2023 + MORE Oct 13th
Kyle Prevost, creator of 4 Steps to a Worry-Free Retirement, Canada’s DIY retirement planning course, shares financial headlines and offers context for Canadian investors.
Clearly, the biggest world news is the conflict in Israel and Gaza. This week we are holding off discussing the effects.... More »
Hong Kong stocks have worst day in three months on worries about rates and real estate - CNN Oct 3rd
Hong Kong stocks have worst day in three months on worries about rates and real estate CNNStock market today: Asian markets sink, with Hong Kong down 3% on heavy selling of property stocks Yahoo News CanadaChinese Stocks in Hong Kong Slump, Leading Asia Equities Selloff &n.... More »
Why are Canadians still frustrated with the economy? Nov 5th
The federal finance minister has been taking every opportunity to remind frustrated Canadians that after a bumpy pandemic recovery, the nation’s economy is actually doing a lot better.
Inflation is now at 1.6%, below the Bank of Canada’s 2% target. Interest rates are falling rapidly and mor.... More »
Recovering from GIC sticker shock Jan 15th
If you’re a retiree or near-retiree relying on GICs for your fixed-income investments, no doubt you’re facing GIC sticker shock as previously invested GICs are reaching maturity. If before you were getting 2% to 3% on 2-, 3-, 4- or 5-year GICs, you may be shocked to discover you’ll be lucky to.... More »
Q. I’m 50 years old and I’d like to work for three more years, then “retire” at age 53. I’m single and have two defined benefit pensions that I could begin collecting at age 55 but want leave them untouched until I turn 60 as that allows me to qualify for full pensions.
To bridge that seven-year gap, I intend to gradually deplete my RRSP and TFSA accounts, which are invested in laddered GICs. This will give me an income of $15,000 annually from the RRSPs and $10,000 annually from the TFSAs. The combined income should cover my expenses, which currently come to about $20,000 annually, with room to spare. I think this is the most tax-efficient way to deal with this money. By age 60, both the RRSP and TFSA accounts will be empty, and then I’ll start collecting my two pensions.
This all seems pretty straightforward to me but where I’m a little stuck is on how to deal with my “supplement” fund. I’m going to have a $300,000 lump sum of money to spend or invest, and I expect to draw down on that little by little as the years go by…
To bridge that seven-year gap, I intend to gradually deplete my RRSP and TFSA accounts, which are invested in laddered GICs. This will give me an income of $15,000 annually from the RRSPs and $10,000 annually from the TFSAs. The combined income should cover my expenses, which currently come to about $20,000 annually, with room to spare. I think this is the most tax-efficient way to deal with this money. By age 60, both the RRSP and TFSA accounts will be empty, and then I’ll start collecting my two pensions.
This all seems pretty straightforward to me but where I’m a little stuck is on how to deal with my “supplement” fund. I’m going to have a $300,000 lump sum of money to spend or invest, and I expect to draw down on that little by little as the years go by…
