30 and no pension: What are your options? Sep 6th
When are TFSAs and RRSPs actually taxable? + MORE Feb 29th
How to double your CPP income Apr 25th
Retirement taxes explained: Withholding, clawbacks, and other surprises Sep 19th
Tax implications of making transfers between registered accounts + MORE Dec 21st
Making sense of the markets this week: October 15, 2023
– moneysense.ca
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 on the markets as it is too difficult to comment as there is just so much pain and human loss to sort through.
Inflation refuses to die
With Halloween (and horror flick) season upon us, economists are staring at a scary sight indeed: Inflation is refusing to die, no matter what is thrown at it.
The U.S. Labour Department released the Consumer Price Index (CPI) report on Thursday, and the headline was that overall inflation was up 3.7% and core inflation was up 4.1%. Those numbers were slightly higher than expected.
U.S. Labour Department CPI report highlights
Here’s a few takeaways:
CPI was up 0.4% from August to September.Core CPI was up 0.3% from August to September…
How to avoid tax on severance pay in Canada
– moneysense.ca
I’ve been given notice of an indefinite layoff at work and am wondering whether you can provide some information that will prove useful to a number of people in a similar situation.
What is the best way to minimize the tax when it comes to a severance package payment?
Because of my age and the number of years at work I’m eligible to retire with an unreduced pension. Can I get the severance package and retire at the same time? Is it doable?
I’m not planning on applying for CPP/OAS until after my 65th birthday (I’m 63 now); will my CPP/OAS payments suffer because of this? Can I continue to contribute towards them if I don’t work?
—Andrea
Tax on severance pay in Canada
I am sorry to hear about your layoff, Andrea. This can be tough when you are not prepared emotionally, let alone financially.
If you receive a large severance payment from your employer, the tax payable can be significant. A long-time employee who receives a 12-month severance payment late in the calendar year, for example, can end up with two years worth of income in a single year…
