There are plenty of retirement plan options in Canada! Stay on top of the best plans right here.
Latest News
Stock news for investors: Air Canada Q3 profit plunges to as strike weighs on results + MORE Nov 8th
Here’s a round-up of news for Canadian investors this week.
Air Canada
Fortis
Thomson Reuters
Suncor
Cameco
Maple Leaf Foods
Sun Life Financial
Cineplex
Corus Entertainment
Xanadu Quantum Technologies
Featured RRSP Accounts
.... More »
The truth about public sector pensions Sep 18th
Getty Images
The large (and growing) discrepancy between private and public sector pensions in Canada has spawned the use of the term “pension envy.” I can certainly think of acquaintances who joined the federal civil service or became teachers right after graduating from university. On the whol.... More »
Stock news for investors: Cenovus boosts MEG Energy stake to 9.8% Oct 18th
Here’s a round-up of news for Canadian investors this week.
Cenovus-MEG Energy
Parkland-Sunoco
Cineplex
Featured RRSP Accounts
featured
EQ Bank
Build your retirement savings wi.... 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 »
Close to retirement? Don’t panic, say financial experts Mar 23rd
If you are going to dip into your savings, do so in a planned way and track what you remove..... More »
Reducing capital gains on the sale of a cottage
– moneysense.ca
Q: My mother leases an apartment in a retirement community, but also has a cottage. Can she declare the cottage as her principal residence? How can she avoid or minimize the taxes on the sale of the cottage to her children?—Fredlut2
A: Every Canadian can have one principal residence for tax purposes. It doesn’t have to be your home. It can be your cottage. If you only have one property, selling it generally has no tax implications. Your mother owns a cottage, like many Canadians, so the result is that there are likely capital gains tax to pay in the future.
In your case, Fred, you’ll need to look into the past to get your answer. If your mother had a home that she owned previously, it is likely that when she sold it, she didn’t report a capital gain or pay income tax on that sale. If that’s the case, if we assume she sold it in, say, 2010, the cottage will qualify as her principal residence for subsequent years, but not prior.
If she bought the cottage in, say, 1990 and she sells it in 2014, she will have owned it for 25 years upon the sale…
A: Every Canadian can have one principal residence for tax purposes. It doesn’t have to be your home. It can be your cottage. If you only have one property, selling it generally has no tax implications. Your mother owns a cottage, like many Canadians, so the result is that there are likely capital gains tax to pay in the future.
In your case, Fred, you’ll need to look into the past to get your answer. If your mother had a home that she owned previously, it is likely that when she sold it, she didn’t report a capital gain or pay income tax on that sale. If that’s the case, if we assume she sold it in, say, 2010, the cottage will qualify as her principal residence for subsequent years, but not prior.
If she bought the cottage in, say, 1990 and she sells it in 2014, she will have owned it for 25 years upon the sale…
The $1,000-a-month rule for retirement
– moneysense.ca
Here’s an interesting rule of thumb that most retirees and would-be retirees would do well to adopt. Developed by U.S.-based financial planner Wes Moss, it’s called “The 1,000-Bucks-a-Month Rule.” It means that for every thousand dollars in monthly income you want in retirement, you need to have saved $240,000.
So if you want $2,000 a month from your investment portfolio, this rule suggests you’d need to amass $480,000, which just happens to be close to the minimum amount ($500,000) that “happy retirees” in the U.S. tend to have saved up. Note this rule is to generate investment income that is above and beyond pension income, government pensions like Social Security (in the U.S.) or the combination in Canada of CPP/OAS.
This guideline suggests that if you want $4,000 a month from investment income, in addition to the usual alternative sources of income, then you need to have saved almost a million in liquid investments: $240,000 times four is $960,000. If you wanted $10,000 a month, then you’d need $2…
So if you want $2,000 a month from your investment portfolio, this rule suggests you’d need to amass $480,000, which just happens to be close to the minimum amount ($500,000) that “happy retirees” in the U.S. tend to have saved up. Note this rule is to generate investment income that is above and beyond pension income, government pensions like Social Security (in the U.S.) or the combination in Canada of CPP/OAS.
This guideline suggests that if you want $4,000 a month from investment income, in addition to the usual alternative sources of income, then you need to have saved almost a million in liquid investments: $240,000 times four is $960,000. If you wanted $10,000 a month, then you’d need $2…
