Not sure how to make a retirement plan? Read on…
Latest News
Planning to cash in on your home to help fund retirement? Here’s how to do it right + MORE Dec 14th
Elizabeth and Charles have a home worth about $1.3 million. They’re considering selling and downsizing to a smaller unit to bulk up retirement savings. We ask experts for advice on the right move..... More »
First home savings account: A Gen Z guide to achieving home ownership + MORE Mar 29th
Becoming a home owner is a significant milestone that many young adults wish they could afford. More than two in five Canadians (43%) plan to purchase a home in the next five years, and 24% of them have yet to start saving for a down payment, according to a study conducted by The Harris Poll for Ner.... More »
Do you actually need a financial advisor in your 30s and 40s? May 9th
At some point, most Canadians are told they need a financial advisor. But is hiring one really necessary when you’re in your 30s and 40s, or can it wait until you’re closer to retirement?
Like a lot of financial advice, the answer depends on your personal circumstances; it’s less about yo.... More »
What is the Canada Pension Plan death benefit? + MORE Sep 26th
Ask MoneySense
Your recent article is the first time I have seen reference to a CPP death benefit of $2,500. Can you explain it, please?
—Sam
The primary purpose of the Canada Pension Plan (CPP) is to pay a retirement pension to contributors. Employers as well as employed and self-employed .... More »
CPP vs RRSP: Can you transfer your CPP to an RRSP? Dec 21st
I’m 40 years old. Can I transfer my accumulated CPP to an RRSP?
—Franco
I am going to cut to the chase here, Franco. You cannot transfer your Canada Pension Plan (CPP) to a registered retirement savings plan (RRSP). Some pensions can be transferred to an RRSP, and there are ways .... More »
Investing inside a corporation: what you need to know
– moneysense.ca
A MoneySense reader writes:
We have $550,000 to invest in our corporation and need something tax-efficient. Although we’re retired, we don’t need this money for the foreseeable future, so we’re investing for the long term. We’re considering either DIY investing following one of the Couch Potato-model portfolios or using a robo-advisor. As a third alternative, we’re also wondering if we should just buy Canadian bank stocks. Can you help?
FPAC responds:
Congratulations on your successful retirement! At a stage when most people are focussed on decumulation, you’re asking about establishing an approach for long-term, tax-efficient investing inside your corporation. Let’s walk through these important considerations:
Investment decisions: robo-advisor or DIY—and ETFs or bank stocks?
A robo-advisor is a great choice for automated, tax-efficient and low-cost investing. A robo-advisor will be able to set you up with a portfolio of low-cost, widely diversified ETFs. Regular rebalancing, quarterly reporting and ease of use will make this option attractive if you are looking for a hands-off approach…
We have $550,000 to invest in our corporation and need something tax-efficient. Although we’re retired, we don’t need this money for the foreseeable future, so we’re investing for the long term. We’re considering either DIY investing following one of the Couch Potato-model portfolios or using a robo-advisor. As a third alternative, we’re also wondering if we should just buy Canadian bank stocks. Can you help?
FPAC responds:
Congratulations on your successful retirement! At a stage when most people are focussed on decumulation, you’re asking about establishing an approach for long-term, tax-efficient investing inside your corporation. Let’s walk through these important considerations:
Investment decisions: robo-advisor or DIY—and ETFs or bank stocks?
A robo-advisor is a great choice for automated, tax-efficient and low-cost investing. A robo-advisor will be able to set you up with a portfolio of low-cost, widely diversified ETFs. Regular rebalancing, quarterly reporting and ease of use will make this option attractive if you are looking for a hands-off approach…
How might inflation impact your retirement plans?
– moneysense.ca
For retirees and near-retirees, at least five dire possibilities can threaten a long and fruitful retirement: taxes, investment fees, crumbling stock markets, soaring interest rates and inflation.
We can largely control the first two by maximizing the use of tax-effective vehicles like TFSAs and RRIFs, and avoiding high-fee investment solutions. Stocks and interest rates are trickier, typically addressed by ensuring that the traditional free lunch of diversification and asset allocation are commensurate with your financial resources and lifestyle objectives.
But what about inflation? Throughout the first half of 2021, inflation has variously been depicted as an ominous looming threat, or merely a “temporary” spike, triggered by the COVID recovery. It’s certainly been inching up this summer: food prices are at their highest level in almost three decades, and the prices of housing, energy and even used cars are soaring. U.S. inflation is up 5.4% versus a year ago and is at a 13-year high…
We can largely control the first two by maximizing the use of tax-effective vehicles like TFSAs and RRIFs, and avoiding high-fee investment solutions. Stocks and interest rates are trickier, typically addressed by ensuring that the traditional free lunch of diversification and asset allocation are commensurate with your financial resources and lifestyle objectives.
But what about inflation? Throughout the first half of 2021, inflation has variously been depicted as an ominous looming threat, or merely a “temporary” spike, triggered by the COVID recovery. It’s certainly been inching up this summer: food prices are at their highest level in almost three decades, and the prices of housing, energy and even used cars are soaring. U.S. inflation is up 5.4% versus a year ago and is at a 13-year high…
