Not sure how to make a retirement plan? Read on…
Latest News
Stock news for investors: Quarterly profits up at Shopify, Brookfield; down at Suncor, Reuters Aug 8th
Here’s a round-up of news for Canadian investors this week.
Shopify
Suncor Energy Inc.
Brookfield Asset Management
Parkland Corp.
Thomson Reuters
Featured RRSP Accounts
featured
EQ Bank
.... More »
Cdns willing to postpone retirement to help their kids: Report + MORE Dec 17th
Half of Canadian parents say they would postpone retirement because of concerns about the financial future of their children..... More »
Retirement planning —after you retire + MORE Jul 1st
(iStock)
While similar, retirement and what I like to call financial independence are not necessarily the same thing. The latter arrives when you have sufficient sources of passive income and assets accumulated that you can meet all your daily lifestyle expenses without having to continue to work. W.... More »
Selling stocks at a loss in a TFSA: What it means for your contribution room Apr 12th
Ask MoneySense
I lost $20,000 dollars in my TFSA account in the market correction, and my broker sold the losing stocks. Can I put more money in to bring me back up the to the limit the government allows?—Wayne
Capital losses in a TFSA
A capital loss is when you sell an investment at a lowe.... More »
How to make your retirement savings go farther and last longer Oct 19th
If you are like most Canadians, the investment choices you make during your working years may have a significant impact on your retirement. But the importance of smart investing doesn’t end when you retire. In fact, post-retirement investing can have an even larger impact on your retirement well-b.... More »
Trial retirement
– moneysense.ca
Read how and why Graham, a 42-year-old bank analyst, took a year off from work to spend more time with his family.
Which billionaire recently paid $27.5 million for a vintage Ferrari? Here’s a hint: The fashion entrepreneur helped build an iconic American label. And he’s Canadian.
Which billionaire recently paid $27.5 million for a vintage Ferrari? Here’s a hint: The fashion entrepreneur helped build an iconic American label. And he’s Canadian.
You can play with retirement planning calculators from now until you’re 90, but it’s unlikely any of them will factor in expenses like a $1,000 custom-made satin-and rhinestone stage outfit.
What is your Safe Withdrawal Rate?
– rhondasherwood.com
One of the single most important questions you need to get clear about before entering retirement is to know what your safe withdraw rate is. In other words, how much you can ‘safely’ take as an income each year from your portfolio so you don’t outlive your money?Although your personal withdrawal rate really depends on the date you retire, how you invest your money and what returns or how much your money grows in retirement (especially in the early years), the average or rule of thumb has always been somewhere around 4 percent.
How much Money do I Need to Save?
Using the 4 percent withdraw rate as an example, the amount of savings you should have in place before deciding to retire is 25 times the dollar amount you require annually from your investments. So let’s say you want to generate $30,000 annual income from your portfolio, using the 4 percent withdrawal rate you would need $750,000 in saving (25 x 30,000 or 4 percent x 750,000). If you only have $500,000 saved then using the same withdrawal rate you should only take an annual income of $20,000 from your investments…
