How to go about securing the best Retirement Plan in Canada.
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Single, no pension? Here’s how to plan for retirement in Canada Jul 4th
Being single in retirement has some financial obstacles. Some people are single as they enter retirement. Others become single due to divorce or death prior to or after retiring. Here are some considerations for planning your retirement as a singleton, especially if you have no defined benefit (DB) .... More »
Caisse to sell off remaining oil assets by next year - CBC.ca Sep 28th
Caisse to sell off remaining oil assets by next year CBC.caQuebec pension giant Caisse to exit remaining oil-producing assets, setting up $10-billion green fund The Globe and MailCaisse de dépôt to exit oil production by end of next year in new climate strategy Fin.... More »
OAS payment dates in 2025, and more to know about Old Age Security + MORE Apr 4th
If you’re approaching or planning for retirement, you may have questions about Old Age Security (OAS) benefits, like: Do I need to apply for OAS? How much will I receive in OAS? When do OAS payments go out? We cover these questions and more below. But first, here’s a quick overview of how OAS wo.... More »
How does an executor pay estate expenses during the probate process? + MORE May 4th
I’ve realized that my large RRSP would generate a very large income tax bill if I die in the near future. I don’t have a spouse, or anyone who qualifies as a beneficiary to my RRSP on a tax-deferred basis. How can my executor pay my income taxes if it takes a year to get probated?—Carol
.... More »
Can Canadian investors save tax when a stock’s company goes bankrupt? Dec 27th
Ask MoneySense
The company of a stock I own went bankrupt. Am I able to claim losses? If so, how?
—Jake
Can you save on tax when a company you invest in goes bankrupt?
The short answer is: it depends, Jake. But, I will outline the factors to consider to determine if and how you ca.... More »
Canada’s climbing debt-to-income ratio: what you need to know
– moneysense.ca
The latest headlines tell a now-familiar story: Canadian households’ debt loads have increased once again, with the debt-to-income ratio hitting 175.4% in the first quarter of 2020. But what is this ratio, why is it rising, and—most importantly—do you need to worry about it?
What is the debt-to-income ratio?
First things first. The debt-to-income ratio is a measure of how much debt a household is carrying, relative to its disposable income—that is, the money you have available to spend or save, after taxes and other non-discretionary expenses, such as EI and CPP or QPP contributions, are made.
A ratio of 175,4% means that, across all Canadian households, in the first three months of 2020 we collectively owed $1.75 for every dollar of disposable income we have. That’s very close to the all-time high of 179% in late 2017.
In September 2020, Statistics Canada reported that household indebtedness fell as a result of changing spending, saving and borrowing patterns during the global COVID-19 pandemic…
What is the debt-to-income ratio?
First things first. The debt-to-income ratio is a measure of how much debt a household is carrying, relative to its disposable income—that is, the money you have available to spend or save, after taxes and other non-discretionary expenses, such as EI and CPP or QPP contributions, are made.
A ratio of 175,4% means that, across all Canadian households, in the first three months of 2020 we collectively owed $1.75 for every dollar of disposable income we have. That’s very close to the all-time high of 179% in late 2017.
In September 2020, Statistics Canada reported that household indebtedness fell as a result of changing spending, saving and borrowing patterns during the global COVID-19 pandemic…
Ways to “unlock” retirement savings in a LIRA
– moneysense.ca
Q. When I retired at age 63, the financial institution that managed my DPSP account paid the company-contributed portion (approximately $30,000) into a LIRA.
Given all the constraints related to drawing down a LIRA/LIF, I am now 65, living in BC, and have two questions:
Given all the constraints related to drawing down a LIRA/LIF, I am now 65, living in BC, and have two questions:
Since I was already at retirement age, was it really necessary for the financial institution to create the LIRA, or could all the proceeds simply have been consolidated into my RRSP account?
In order to simplify the management of my portfolio, is there any way of “unlocking” the LIRA so that I can place the proceeds into a normal RRIF?
–Keith
A. Leaving a group pension or retirement savings plan often means you have decisions to make. Some plans allow retirees to keep their investments with the provider, either in the same plan or with their retiree program.
Plan members often transfer their investments out to invest with an advisor or on their own. Certain accounts need to be transferred to new accounts, while others can be transferred to the same receiving account…
