Retirement planning getting you down? There are always smart ways to plan the financial aspects of your retirement.
Latest News
Can a non-resident open an investment account in Canada? Sep 21st
I moved to Sweden to study in 2021 and I am no longer considered a resident of Canada (to my understanding). However, I have some money to invest. I am not allowed to contribute to my TFSA which leaves me with contributing to an RRSP or an ISK (Swedish tax efficient account). In short, you pay ~0.40.... More »
CPP vs RRSP: Can you transfer your CPP to an RRSP? Dec 21st
I’m 40 years old. Can I transfer my accumulated CPP to an RRSP?
—Franco
I am going to cut to the chase here, Franco. You cannot transfer your Canada Pension Plan (CPP) to a registered retirement savings plan (RRSP). Some pensions can be transferred to an RRSP, and there are ways .... More »
Is AI the ultimate retirement hack? Jun 13th
There’s an interesting new book just published called I Am Not a Robot: My Year Using AI to Do (Almost) Everything. The author is Joanna Stern, who was a personal technology columnist for the Wall Street Journal for 12 years. As the subtitle of her book reveals, she spent a year using ar.... More »
Are you missing out on RRSP matching and more? Feb 28th
A registered retirement savings plan (RRSP) is a powerful retirement savings tool, yet many Canadians aren’t getting its full benefits. A lot of us are also missing out on RRSP matching and other incentives—essentially, free money—that could go a long way to funding a more comfortable retireme.... More »
Draft securities regulation would revise status of pension funds + MORE May 6th
New version of Capital Markets Stability Act open for public comment until July 6
.... More »
Reduce tax brackets by organizing where you hold investments
– moneysense.ca
(Getty Images / Peter Dazeley)Nobody likes to pay taxes.
But while they are inevitable, you can minimize the amount you pay.
Brent Vandermeer, a portfolio manager with HollisWealth, says to build a tax efficient portfolio you need to pay attention to what you hold and where it’s held.
“A lot of people view each of their own accounts that they have set up as distinct little buckets that they manage,” he said.
“From a tax efficiency point of view that actually negates some of the benefit of having certain kinds of investments in more tax efficient accounts.”
That’s because in the eyes of the Canada Revenue Agency, not all investment income is created equal.
Under the tax rules, interest income from investments like savings accounts, GICs and bonds are fully taxable at your marginal tax rate, while dividends benefit from the dividend tax credit that helps reduce the amount of tax you owe.
And only half of any capital gain is included when calculating your taxes.
Vandermeer says those differences mean you need to pay attention to where your investments are held, whether it is your RRSP, tax-free savings account or other non-registered account…
With ‘good genes,’ Ian, 68, works to stretch retirement savings
– theglobeandmail.com
Consultant runs his own business from home and says continuing to work past 65 for a few extra years will allow his nest egg to last longer
Corporate Boards Turn Up Heat on Management to Think Short Term
– blogs.wsj.com
The head of Canada’s biggest pension fund wants to curb the spread of short-term thinking in corporate boardrooms as management teams face increasing pressure to focus on short-term earnings growth and stock-price gains over long-term growth.
