Not sure how to make a retirement plan? Read on…
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U.S. withholding tax in an RRSP for Canadians + MORE Aug 3rd
I have EPD stock in my RRSP for their dividend payments (about 7%). What a surprise I had—even when in an RRSP—I had to pay about 30% tax on these dividends. EPD is registered in Louisiana. —Wanda
How much is withholding tax on U.S. dividends?
I am going to provide a brief summary of U..... More »
Should I use my RRSP to pay down debt at retirement? + MORE Mar 24th
Q: I have a friend who has just retired and is carrying a debt load of $96,000. She wants to eliminate this debt over a fairly short period of time—about 4 years. The debt is a line of credit that she is paying 4% on. She’s a widow and has $423,000 in RRSPs. How would you approach this problem?.... More »
Can you change your mind about taking CPP early? Aug 10th
Q. I am 62 years, 10 months of age, and still working but plan to retire (early) at the end of November 2021 with an unreduced employer pension.
I have been collecting CPP for 28 months because I needed the extra money at the time, but I am in a better financial position now.
Can I ask to stop col.... More »
What is the CPP Survivor’s Pension? How can Canadians claim this benefit? + MORE Feb 15th
Ask MoneySense
My wife passed away, and I heard about the survivor’s pension. Can you tell me more about this benefit and how to receive it?—Kevin
What is the CPP Survivor’s Pension?
Thanks for your email, Kevin. Losing a spouse or common-law partner is one of the most challenging e.... More »
How are FIRE adherents making out? + MORE May 23rd
In the increasingly specialized world of financial blogging, there’s a subgenre of so-called “FIRE” experts, who expound on the acronym FIRE. FIRE stands for Financial Independence Retire Early. Some proponents are in their 40s or 50s and practising what they preach, having either reached fina.... More »
Canada Pension Plan Investment Board has decided to invest US$250 million to buy a six per cent stake in Markit Ltd. as part of the U.K.-based financial information company’s initial public share offering.
The Toronto-based pension fund manager will have the right to nominate one director to Markit’s board as long as it maintains a certain level of ownership in the company.
CPPIB had initially indicated it would be prepared to invest up to US$450 million but that was a non-binding expression of interest, subject to negotiation.
It announced Thursday that it will buy 10.4 million common shares of Markit for US$24 per share.
Among other things, Markit produces monthly reports on manufacturing data in various countries and regions including China, Canada and the European Union.
According to its IPO filing, Markit generated US$947.9 of revenue in 2013 and US$259.4 million in the first three months of 2014.
The CPPIB, one of Canada’s biggest pension funds, invests money not currently needed by the Canada Pension Plan to pay benefits…
The Toronto-based pension fund manager will have the right to nominate one director to Markit’s board as long as it maintains a certain level of ownership in the company.
CPPIB had initially indicated it would be prepared to invest up to US$450 million but that was a non-binding expression of interest, subject to negotiation.
It announced Thursday that it will buy 10.4 million common shares of Markit for US$24 per share.
Among other things, Markit produces monthly reports on manufacturing data in various countries and regions including China, Canada and the European Union.
According to its IPO filing, Markit generated US$947.9 of revenue in 2013 and US$259.4 million in the first three months of 2014.
The CPPIB, one of Canada’s biggest pension funds, invests money not currently needed by the Canada Pension Plan to pay benefits…
Ottawa forging ahead with target benefit pension plan
– thestar.com
Federal minister of state for finance Kevin Sorenson says many details yet to be worked out.Consider Selling Your House to Finance a Comfortable Retirement
– rhondasherwood.com
If you are like a number of Canadians who are at or close to retirement age, a significant portion of your net worth is probably tied up in your home. For many of us, owning our own home is a symbol of success and security. We remember the first house we bought, the years of forced saving which came with making regular mortgage payments. Once the mortgage was paid off, we appreciated the increased cash flow. Does it make sense to consider selling your house to finance a comfortable retirement?
How to Finance a Comfortable Retirement: Three Scenarios
If you are a homeowner approaching retirement, here are three scenarios to consider:
Sell your home early on to provide cash to fund your retirement years. Many people are in the “house-rich and cash-poor” category, and this scenario can make good sense for them.
Sell your house partway through retirement. This is scenario which typically occurs for most people, as they sell their home to fund some type of assisted living arrangement…
Can Power of Attorney claim a fee?
– moneysense.ca
“Image courtesy of Grant Cochrane/ FreeDigitalPhotos.net”.Q: My wife’s sister has been diagnosed with Alzheimer’s disease, and is now living in a retirement home with some assistance. She named my wife Power of Attorney. Can my wife claim a fee for looking after her and her affairs?
—Terry Dickson, Kitchener, Ont.
A: Your wife can claim a fee as Power of Attorney, because you reside in Ontario. Other provinces handle the matter differently, but in Ontario you can claim 3% of the monies received and disbursed by the grantor, and a management fee of 3/5ths of 1% of the average annual value of the grantor’s assets. (That is, unless a different fee arrangement had been laid out in the Power of Attorney document that your wife’s sister signed.) Toronto estate lawyer Ambie Edgar-Chana cautions that when you’re compensated you “will be held to the benchmark of an expert in managing the grantor’s financial affairs, and if you fall short you can be held financially liable, personally…
Are they on track to retire at 50?
– moneysense.ca
(Photograph by Ania and Tyler Stalman)The current situation
Adam Danyleko, 28, and Justine Oshust, 25, recently purchased a new home in Calgary for $822,000. The couple, who make $200,000, are looking forward to building a life together, but would like to retire when Adam turns 50, with about $100,000 in net income annually. Another ripple of that plan would involve Adam, who is employed as a regional sales leader, semi-retiring at 45. “I work on commissions and it’s a very stressful job,” he says.
Besides their house, which carries a $650,000 mortgage, the couple’s assets are mainly held by Adam, the household’s main breadwinner: $50,000 in RRSPs, $11,000 in TFSAs, $10,000 in a defined contribution pension and $30,000 in an employee stock matching plan. Justine, a dental assistant, has $30,000 in a TFSA. So far, Adam is pleased with his work’s stock plan. “I started buying the company stock at $14 a share and it’s now worth $54.” But the same can’t be said for his RRSP…
