Best in show: How to find and invest in market leaders + MORE Apr 10th

The new federal plan has some hiccups — it’s still not available at the Big Six banks — but once it’s up and running, it will allow potential buyers to save for their first home tax-free.

The new federal plan has some hiccups — it’s still not available at the Big Six banks — but once it’s up and running, it will allow potential buyers to save for their first home tax-free.

Canadians approach retirement planning in many different ways, but there’s one thing we can all benefit from: a strategy to save enough to retire comfortably and even generate income after we stop working.

But many of us don’t feel financially ready to stop working. According to a 2022 survey by the National Institute on Ageing (NIA) at Toronto Metropolitan University, only one-third of Canadians aged 50-plus say they have the financial capacity to retire when they hope to do so. A survey by investment firm Edward Jones, also published in 2022, found that Canadians preparing for retirement have significant worries about future expenses, including health-care costs (59%), unexpected expenses (58%), economic downturns (42%) and inflation (41%).

These findings may sound grim, but there is also good news in the data points: Many people are enjoying retirement with a reasonable sense of personal and financial well-being. Regardless of where individuals fall on the retirement-savings spectrum, all share the need for a solid strategy to ensure they don’t outlast their money…

First home savings account (FHSA) highlights
The FHSA is a type of registered account that allows you to contribute up to $8,000 annually, up to a lifetime limit of $40,000, to save for the purchase of your first home.FHSAs became available on April 1, 2023. However, availability is currently limited and will vary by financial institution. Many are expected to launch their FHSA later in 2023. 

Canadians can now boost their savings for a down payment on a home with a new type of registered account. The first home savings account (FHSA) creates up to $40,000 in tax-free savings room for first-time home buyers who face barriers to entry into the real estate market. In this article, we’ll explain why the FHSA was created, how it works, and how you can maximize its potential—whether or not you’re saving for a home. (More on using it outside of home ownership later on.)

The best FHSA in Canada

On April 1, Questrade became the first and only company to launch an FHSA in Canada…

In their early 30s, Kristy Shen and Bryce Leung quit their high-paying jobs in software engineering to travel the world. The Toronto couple had $1 million in savings, but instead of taking the conventional route of home ownership, they packed their suitcases. Shen and Leung started sharing their adventures and investing approach on their blog, Millennial Revolution. In 2019, they published Quit Like a Millionaire: No Gimmicks, Luck, or Trust Fund Required (TarcherPerigee), a guide to achieving a FIRE—Financial Independence, Retire Early—lifestyle. We invited Shen to share her finance heroes, the best money advice she’s ever received, and much more.

Who are your finance heroes?

Warren Buffett, because he’s the greatest investor of all time and he advocates for index funds, which we use for our passive investing strategy. By winning a 10-year bet against a hedge fund investor, he proved that passive index investing wins over the long run compared to stock picking.

Aside from him, Mr…