All about Retirement Planning in Canada. Learn the ins and outs and get the latest news.
Latest News
Credit Suisse lands ex-Morgan Stanley managing director + MORE May 6th
Quick courtship of veteran investment banker Ram Amarnath a sign of the importance investment banks attach to covering Canada’s private-equity firms and pension plans
.... More »
Do I need to retire my debt, before I retire myself? Dec 23rd
Q: So, I’m retiring (single male 65) with $850,000 total in RRSPs and a DCP where I currently work.
I have no debt. I owe $50,000 on a $500,000 home. I pay $730/month. Mortgage is due May 2019. Penalty would be minimal. Should I pay it out in 2018, my first year ‘unemployed’? What are my opt.... More »
Best high-interest savings accounts in Canada 2021 + MORE Jan 5th
Regular savings accounts offer very low interest rates, so if you want to earn on your deposits (rather than simply use your account as a temporary “holding tank” for funds you’ll soon be using for purchases, or directing to longer-term saving and investing vehicles), a high-interest savings a.... More »
Investing with your gut + MORE Jul 22nd
(Shutterstock)
Most Canadians are boring investors; they sock their money away in plain vanilla mutual funds or Exchange Traded Funds (ETFs) inside of Registered Retirement Savings Plans (RRSPs) or Tax Free Savings Accounts (TFSAs). And that’s exactly how it should be—saving for retirement isn.... More »
Should you borrow to pay expenses on an investment property? + MORE Nov 18th
Q. I have an investment property that I rent out. Now that I’m retired, I would like to use the income to supplement my retirement income. That would leave me with no money to pay the expenses on the property (mortgage payment, maintenance, utilities, etc.).
I’m wondering two things: One, can I .... More »
How to invest a RRIF
– moneysense.ca
(JGI/Jamie Grill/Getty Images)Q: Can you suggest a preferably low cost RRIF portfolio for a 74-year-old woman in decent health in an amount of about $500,000?—Sharon
A: I think what you really should be considering is a good value Registered Retirement Income Fund (RRIF) portfolio as opposed to a low cost RRIF portfolio, Sharon.
A low cost RRIF portfolio is easy. You can put it all in GICs and pay no fees. Or you can take the RRIF to an insurance company and buy an annuity that will pay a monthly payment for the rest of your life, meaning no more investment fees. Though both options have virtually no direct cost, they have indirect costs because you’re committing to low, albeit guaranteed returns.
Investing in stocks has a cost. There are costs that are direct as well as indirect and you need to assess what you’re getting for the price.
You can keep your direct costs down by buying exchange-traded funds (ETFs) through a discount broker. Questrade, iTrade, Qtrade Investor and Virtual Brokers offer no fee ETF purchases (you pay commissions on sale)…
The new nationalism: Should Canadian pensions invest more at home?
– theglobeandmail.com
Debate intensifies over pension funds’ duty to invest in local infrastructure
Moving from Employee to Retiree: How to Make your Pretax Dollars Stretch
– rhondasherwood.com
Are you about to make the move from employee to retiree, which means going from a guaranteed salary to drawing down your savings and living off of pension income? If so, be prepared, as this tends to be a jarring time for most people. No longer will you be focused on accumulating your wealth but instead, you are be depleting it. During this stage in life, the advice of your financial advisor becomes invaluable, especially during the five years prior to retirement and the first five years of retirement. Small mistakes can have big financial consequences when you are moving from employee to retiree.
How to Make a Successful Financial Move from Employee to Retiree
However, with a bit of planning, you can minimize the number of pretax dollars you will need to withdraw to maintain your lifestyle to have a comfortable retirement. Here are some tips to help you take the strain off your savings:
1. Income Splitting Can Minimize Tax Payable
You and your spouse or partner can use income splitting to equalize your household income (or make it closer to equal) and avoid paying more than you need to in taxes…
Working in retirement is not a retirement plan
– moneysense.ca
(Tony Garcia/Getty Images)You’re probably going to live longer than you think but it if you’re worried about outliving your money, planning to work in retirement is not a panacea, warns Toronto-based Fidelity Investments Canada ULC.
At a media briefing on Monday, vice president of retirement and economics research at Fidelity Canada, Peter Drake, urged those still saving for retirement to take more individual responsibility for their future after work. “You’re going to live longer than you think,” he said, citing steadily rising life expectancy statistics going back to 1921. Someone born in 1921 would have a life expectancy of about 58, a figure that passed 70 for someone born in the mid 1950s and which passed 80 shortly after the new millennium.
Certainly, the latest data from the 2014 Fidelity retirement survey released at the event suggests those falling short of their retirement savings goals are counting on some kind of paying “encore career” to make up the difference…
