Retirement planning getting you down? There are always smart ways to plan the financial aspects of your retirement.
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A Tax-Free Savings Account (TFSA) is a fantastic way to earn money on your savings, without having to pay tax on those earnings. Registered by the federal government, TFSAs are available to Canadians aged 18 and older. Unlike a Registered Retirement Savings Plan (RRSP), you cannot deduct contributio.... More »
Why “unretirement” may be the fate of so many Canadians Mar 14th
The idea of “unretirement” seems to be making a comeback as more Canadians find themselves under economic stress. Even before the tariff threats emerged under Trump 2.0, seniors and near-retirees were finding the economic uncertainty and rising cost of living becoming uncomfortable. No surprise .... 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 »
Live from Retire Rich 2015 + MORE Apr 9th
We’re live blogging from Retire Rich starting at 5:15 p.m. EST on Wednesday, April 8, 2015. (James Porter/Getty Images)
Missed our Retire Rich 2015 event? You can catch some of what leading retirement-planning experts and MoneySense personalities including Duncan Hood, Bruce Sellery, Preet B.... More »
Stock news for investors: Quarterly profits up at Shopify, Brookfield; down at Suncor, Reuters Aug 8th
Here’s a round-up of news for Canadian investors this week.
Shopify
Suncor Energy Inc.
Brookfield Asset Management
Parkland Corp.
Thomson Reuters
Featured RRSP Accounts
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EQ Bank
.... More »
Pension withdrawals: Lump-sum vs. deferred payment
– moneysense.ca
(iStock)Q: I am about to make a decision on whether to take a lump-sum on my pension or a monthly amount. I have some other investments, but my thought was I did not want everything tied up in the markets in case markets took a dip. I thought a monthly amount might be best for my situation, but I may be wrong.—Bill
A: The biggest retirement decision that an employee can make is when to retire. The second biggest is what to do with their defined-benefit pension, if they have one.
Sometimes, the pension decision comes about because of retirement. In other cases, it’s due to a termination of employment or a company making a change to their pension plan for employees. Regardless, it’s not uncommon to be given a choice between taking a lump-sum payment in lieu of your future monthly pension (known as a commuted value) or otherwise taking your calculated monthly pension payment in retirement.
If you take a lump-sum, Bill, it can typically be transferred to a locked-in retirement account (LIRA), which is just like a regular RRSP with a few restrictions…
