Not sure how to make a retirement plan? Read on…
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Are Canadians Getting the Most From Their Retirement System? + MORE Sep 17th
Depending on where you live and work, the answer to this question will vary. In addition to potentially having a workplace pension plan, Canadians have private options such as RRSPs and TFSAs, as well as several government products to navigate such as CPP, OAS and GIS. Depending on which province yo.... More »
Divorce over 50: managing your finances if you find yourself single in the run-up to retirement Aug 3rd
Divorce is certainly not new—but what’s emerging as a trend is the choice to split later in life. Dubbed grey divorce, these marital splits, happening close to or in retirement, are reportedly on the rise, and they can have a significant financial impact.
Married couples are generally subject .... More »
I’m decades from retirement. Do I really need to contribute to my RRSP? + MORE Mar 15th
The biggest issue with contributing to an RRSP too early is the need down the road to withdraw the money for expenses other than retirement that come along, says experts.... More »
Student-Made Adidas Ad Will Make You Feel Something Real + MORE Jan 6th
Some commercials do a great job at pulling at our heartstrings, and although this one won't be aired anywhere, it still will make you feel something real.
In a student-made ad for Adidas uploaded on YouTube in December, the video tells the tale of a lonely elderly man who was once a happy maratho.... More »
Are Canadian pension buybacks worth it? Jul 20th
Ask MoneySense
I am currently transferring my pension from a provincial to a federal government pension plan. I’m trying to determine if it is worth purchasing the balance of service and, if so, should I use my RRSP or TFSA funds. Here’s some relevant info:
Service Credited: 7 years, 140 days.... More »
Building a low-fee portfolio that lasts
– moneysense.ca
Edward and Penelope Arneson of Cochrane, Alta. (Photo by CHRIS BOLIN)THE PROBLEM
Cochrane, Alta. residents Edward, 60, and Penelope, 58, retired five years ago. Ed feels grateful to his former employer for his defined benefit pension plan, but he doesn’t feel that way about his adviser of 25 years. “We’re getting mediocre returns—we’re not even hitting the benchmarks,” he says. “We want a change.” Their portfolio includes $250,000 worth of Imperial Oil shares as well as registered and non-registered mutual funds. Their holdings are mostly in funds charging 2.2% in fees, with a whopping 80% weighted in Canadian equities. Their goal? “More income, more tax efficiency, and less fees.”
THE FIX
Calgary money coach Tom Feigs says the Arnesons first need to adjust their asset allocation. Right now, their after-tax guaranteed income for life from Ed’s company pensions is $58,000 annually (indexed to inflation) and will bump up to $78,000 when Ed turns 65. If they can get an average annual 4% return on their portfolio, the couple can easily supplement their lifestyle up to $95,000 in income per year to age 95…
With the job cuts winding down, Robinson argued that the rate of retirement will drive more hiring.
The federal Crown corporation that invests civil servants’ pensions used a complex network of European companies that its own advisers called an “avoidance scheme” to avoid paying foreign taxes — a revelation that could undermine Canada’s standing as countries crack down on corporate tax avoidance.
