Not sure how to make a retirement plan? Read on…
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How much should I have in my RRSP? + MORE Feb 22nd
For many Canadians, investing in their registered retirement savings plan (RRSP) is the primary way they save for retirement. RRSPs are an invaluable tool, allowing you to stow away funds for golden years while reducing your taxable income today. However, there is no one-size-fits-all way to use the.... More »
Canada’s income tax brackets for 2023, plus the maximum tax you’ll pay based on income + MORE Dec 7th
Taxes are an inescapable fact of life in Canada. Despite this, many of us don’t think too hard about the specific federal and provincial tax brackets that govern our taxable income. Nonetheless, understanding what bracket we fall into is key to accurately estimating the amount of tax we owe on our.... More »
A simple guide to investing your first $500 + MORE Jan 24th
For many young Canadians, the barrier to entry for investing feels impossibly high. Between student loans, rising rent, and the cost of living, scraping together a starter fund can seem daunting. Yet, as little as $500 to $1,000 is sufficient enough to begin building the habits that create long-ter.... More »
WTFinance is an RRSP? + MORE Sep 9th
The post WTFinance is an RRSP? appeared first on MoneySense..... More »
Screwed! Dec 31st
“Our retirement dreams are in tatters.” The line jumps out from an email to MoneySense from a reader we’ll call Ellen Thornton. The Thorntons’ retirement portfolio once stood at $2.2 million, but as of early 2014 it had plummeted about 90% to just $225,000. Their advisor—who works .... More »
Am I on track to retire by age 55?
– moneysense.ca
The current situationMike Cameron, 33, and his wife Lacy, 29, are the new parents of a 1-year-old and up to now have been good savers. But the South River, Ont., couple—who make $90,000 annually—plan to have another baby soon and know that will completely unhinge their budget.
Right now, they’re on track to have their $91,000 mortgage paid off in seven years and are currently saving $15,000 annually in RRSPs and TFSAs. “We want to retire at 55 with $50,000 net a year, but as our family grows, we’re going to have to halt our savings program for five years,” says Mike, citing increased daycare costs. The couple only plans to continue paying into Lacy’s company pension plan after Baby No. 2 arrives.
To make up for lost time later, they plan to ratchet up their savings to $30,000 annually in seven years, when they’re mortgage-free and no longer reliant on daycare. They’ll then continue to invest in the same balanced and growth mutual funds that have returned 10% net annually for the past five years…
Power of Attorney: Why Choose to Give up your Right to Make Decisions?
– rhondasherwood.com
One of the things that we would find hardest to give up is our independence, and that may be why the idea of signing a power of attorney is so difficult for many people. There are times when having a signed power of attorney in place can be a benefit to you and your family, though, even if it means that you have decided to give up your right to make decisions.
Life Circumstances Can Change Quickly
You have done all the right things to prepare for retirement. Your financial plan is in good shape, and you meet with your financial advisor regularly to make sure that it stays that way. Everything is going according to plan and you anticipate being the captain of your financial ship as you transition from employee to retired person. As your number of working days wind down, you find yourself thinking more and more about life after work.
You may have been distracted thinking about your new life while driving home from work one day when everything changed in a heartbeat. Instead of continuing on with neatly ordered life, you have been involved in a serious car accident and your recovery will be a lengthy one…
