Not sure how to make a retirement plan? Read on…
Latest News
Rich at any age: In your 30s + MORE Jul 2nd
It’s probably no coincidence that the iconic rock song “Under Pressure” was recorded when all members of the band Queen were still in their 30s. Because financially speaking, that’s precisely what this decade feels like when you suddenly find yourself juggling the responsibilities of buying .... More »
Can I withdraw from RRSPs to pay bills? + MORE Apr 20th
What are the cons to withdrawing RRSP savings of $25,000 to pay off some unexpected bills I have incurred?—Anonymous
Withdrawing RRSPs when you’re not retired
Ahh, the unexpected bills.
Anonymous, I’ll give you my initial thoughts first, and then I’ll review the cons of withdrawing .... More »
Canadians take retirement savings seriously, census data shows + MORE Sep 16th
It’s the first time the census has probed the question, taking advantage of tax data to correct a picture which experts say has long been distorted by suspect numbers and aggressive investment marketing..... More »
3 Steps To Success In The Executive Gig Economy + MORE Jun 10th
The decision to enter the executive gig economy is generally the result of two forces.
The first is necessity: where as a result of downsizing, lag time between full-time positions or stagnating professional growth, contracts or interim projects become a way to fill the economic or experience gap.... More »
Using your TFSA as a learning tool + MORE Aug 26th
Raj Thirumeni
AGE: 28
PLACE: Vancouver
TFSA TOTAL: $17,000
STRATEGY: Stocks
Me and my TFSA
Raj Thirumeni is 28-years-old and works for the banking operations of a large financial institution. He has several degrees, including a Master of Science in project management, an MBA, as well as a .... More »
How You can Help Your Grandchildren with the Rising Cost of Education
– rhondasherwood.com
Modern families find themselves stretched to the limit. Many people don’t have company pension plans to fund retirement, and so it becomes even more imperative to make smart choices about money when they are raising families. Saving for their children’s education and retirement at the same time may be more challenging in the years to come. As a grandparent, you can help your grandchildren with the rising cost of education.
How Expensive will Education Be in the Future?
It depends on where a family lives and the number of children they have who are planning to go on to a post-secondary program. Here are some facts to keep in mind when thinking about education costs:
Tuition rates have been increasing faster than the national inflation rate.
The average cost of education in Canada is about $6,610 per semester and they are expected to increase to $7,437 in 2016-17, according to the Canadian Centre for Policy Alternatives. This does not include the cost of room and board.
Assuming a three percent inflation rate, a child born today would pay $40,000…
Change RRIF drawdown rules, C.D. Howe says
– moneysense.ca
OTTAWA – The C.D. Howe Institute says it no longer makes sense to have strict rules that force retirees to draw down their registered income funds as they age and says changes are needed so seniors don’t run out of money.
With the federal government under pressure to reform Canada’s pension system so that retiring baby boomers and future generations don’t fall into poverty, the paper by the think-tank’s chief economist William Robson and Alexandre Laurin offers one way to ease the challenge facing seniors at little cost to Ottawa.
Under the Income Tax Act, seniors must withdraw annual minimum amounts from RRIFs and similar accounts in increasing increments that rise to 20 per cent at age 94. The idea is to have retirees receive a dependable annual source of income, and also for governments to “get back” tax revenue on tax-deferred savings vehicles such as RRSPs.
But while mandatory minimum drawdowns might have made sense when they were instituted in 1992, circumstances have changed, the report says…
With the federal government under pressure to reform Canada’s pension system so that retiring baby boomers and future generations don’t fall into poverty, the paper by the think-tank’s chief economist William Robson and Alexandre Laurin offers one way to ease the challenge facing seniors at little cost to Ottawa.
Under the Income Tax Act, seniors must withdraw annual minimum amounts from RRIFs and similar accounts in increasing increments that rise to 20 per cent at age 94. The idea is to have retirees receive a dependable annual source of income, and also for governments to “get back” tax revenue on tax-deferred savings vehicles such as RRSPs.
But while mandatory minimum drawdowns might have made sense when they were instituted in 1992, circumstances have changed, the report says…
Monday Makeover looks at a single woman with a good job, but limited job security. Should she buy a house or save for retirement?
