Retirement Income for Life: Why Canadian retirees love Frederick Vettese’s books and his PERC + MORE Feb 22nd

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.

Shopify struggles

Canada’s second-largest company (or third, depending on the day) had a relatively strong earnings day on Tuesday, but the company’s share price took a beating based mostly on decreased earnings expectations going forward.

Shopify earnings highlights
Shopify is listed on both the Toronto and New York Stock exchanges, and it announces earnings in U.S. dollars.

Shopify (SHOP/TSX): Earnings per share of $0.34 (versus $0.31 predicted), and revenues of $2.14 (versus $2.08 predicted).

Shares of Canada’s tech darling were down over 13% on Tuesday, but even with the massive pullback, the share price is still up 14% year to date (YTD).

Shopify’s CFO Jeff Hoffmeister reported the good news that more products were sold on the Shopify platform than ever before. The fourth quarter included the all-important holiday shopping activity, and Hoffmeister announced that Shopify has moved $75…

Ask MoneySense
I’m a 75-year-old male, working part-time and contributing to EI every two weeks; and have for 10 years.

I do have CPP and OAS income.

Do I qualify to collect EI benefits for a period of time if I retire this year? I’ve paid contributions for 10 years and now plan to retire so I should qualify for some remuneration (benefits).

—JM

Getting EI in retirement

Employment insurance (EI) is a program administered by Service Canada that provides both regular and special benefit payments. Workers in Canada contribute to the program through payroll deductions withheld from their salaries. Since 2010, people who are self-employed can make optional contributions and may qualify for special benefits 12 months after your confirmed registration date. Self-employed sole proprietors or partners pay these premiums when they file their tax returns based on their net business income. If you are incorporated and a shareholder that controls more than 40% of the company, the premiums are based on your salary only (not on dividends)…

Since I turn 71 soon, my attention is naturally becoming focussed on the inevitable question of what to do when my registered retirement savings plan (RRSP) must be collapsed. Do I keep it as a registered retirement income fund (RRIF)? Or should I convert it into an annuity? Maybe I do a combination of both. I will focus on the mechanics of the RRIF conversion in an upcoming Retired Money column, as that will likely be my choice for most of my retirement savings. And, a year down the line, that will likely be the choice of my spouse. In the meantime, I have been reading the new third edition of actuary Frederick Vettese’s excellent book, Retirement Income for Life: Getting more without saving more. In addition, I have been putting Vettese’s PERC (personal enhanced retirement calculator) through its paces, using our family’s data. 

The many editions of Retirement Income for Life

I reviewed the previous (second) edition of this book for the Retired Money column back in October 2020: Near retirement without a Defined Benefit pension? Here’s what you need to know…