Retirement planning getting you down? There are always smart ways to plan the financial aspects of your retirement.
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What’s the Rule of 30? And what does it have to do with income and retirement? + MORE Oct 26th
If you’ve never heard of the Rule of 30, welcome to the club. You may be hearing about it more though. This month, retirement expert and semi-retired actuary Fred Vettese is publishing a new book: The Rule of 30: A Better Way to Save for Retirement (ECW Press, 2021).
I thought initially t.... More »
Are you ready to retire? + MORE Mar 5th
(Betsie Van Der Meer/Getty Images)
Q: I am a 57-year-old widowed medical secretary earning $43,000 annually plus survivor pension of $560 monthly. I do not have a mortgage or car payments or any other debt. My children are grown and on their own. I have approximately $500,000 in RRSP and non-regi.... More »
7 simple differences between RRSPs and TFSAs + MORE Mar 18th
Registered Retirement Savings Plans (RRSPs) and Tax Free Savings Accounts (TFSAs) are the go-to products for Canadians who are serious about socking away some money for the future, whether it’s for retirement or for a big purchase, like a house. While the two products are similar in many ways,.... More »
Can you move income back and forth between spouses? Aug 22nd
Ask MoneySense
I have an investment property (condo) in my name. I would like to sell it and [have the proceeds] paid out half to me and half to my spouse. The plan is to make the maximum RRSP contribution for both of us to minimize the capital gain.
Is that plan OK, legal, and wise?
–Zlatko.... More »
Retirement Income for Life: Why Canadian retirees love Frederick Vettese’s books and his PERC + MORE Feb 22nd
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.... More »
When smart people do dumb things with money
– moneysense.ca
Investors can a learn a lot from pension funds, particularly when it comes to diversification, risk management and long-term thinking. But it seems professional money managers are not immune from the behavioural challenges that plague retail investors.
Doug Cronk, who writes a useful blog called Institutional Investing for Individual Investors, recently pointed me to a couple of industry articles that make it clear the pros are just as human as the rest of us. (I interviewed Doug last fall for an article called “Invest like a pension fund manager” in Canadian Business.)
In a February article in Pensions & Investments, a strategist explains that many pension funds have an investment plan that calls for them to increase their allocation to bonds when their plan is well funded. This is what investors might call “taking risk off the table”: the idea is that if equity markets have been strong and you believe you’re comfortably on track to meet your goals, you can afford to reduce the risk in your portfolio…
Doug Cronk, who writes a useful blog called Institutional Investing for Individual Investors, recently pointed me to a couple of industry articles that make it clear the pros are just as human as the rest of us. (I interviewed Doug last fall for an article called “Invest like a pension fund manager” in Canadian Business.)
In a February article in Pensions & Investments, a strategist explains that many pension funds have an investment plan that calls for them to increase their allocation to bonds when their plan is well funded. This is what investors might call “taking risk off the table”: the idea is that if equity markets have been strong and you believe you’re comfortably on track to meet your goals, you can afford to reduce the risk in your portfolio…
Tax-free Savings Accounts Offer Multiple Advantages for Canadians
– rhondasherwood.com
Tax-free Savings Accounts (TSFAs) offer flexibility to Canadian savers. While a Registered Retirement Savings Plan (RRSP) is designed to put aside funds for retirement, a TFSA is a vehicle which can be used to put money aside for any purpose. If you are looking for a way to put money aside for a big ticket item like a special vacation, a car, home or a cottage, depositing funds into a TFSA can be a great choice.The types of things that a person may want to save money for will vary, depending on his or her own personal goals. As of January 1, 2013, a taxpayer can contribute up to $5,500 per year into a TFSA. Any unused contribution room is carried forward, which means that someone who has more income in later years can make higher contributions to his or her TFSA without incurring a penalty.
Withdrawing Funds from Tax-free Savings Accounts
Funds which are withdrawn from the plan can be replaced later without having an impact on a person’s allowable contribution room.
Here’s an example of how this provision works: Laura contributes $5,500 per year for 10 years into a TFSA and earns investment income on the money held in the plan…
